"In the savings and loans crisis, we got rid of the phoney accounting that our predecessors had put in place to hide the losses," he attests. "In every case we wiped out the risk capital - both equity and subordinated debt. We went to honest accounting rules and closed the problem institutions."
Conversely, claims Black, the President has singly failed to heed the previous experience. Not only have authorities chosen to leave suspected fraudsters in place, but they have protected insolvent institutions by changing Financial Accounting Standards Board rules so that toxic asset losses do not need to be recognised.
The common socialist roots run deep between Progressives and Conservatives
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