Clintonista architect of Wall Street collapse disses “too big to fail” concerns

There’s nothing quite as refreshing as listening to anyone from the Clinton team talk about the banking system that they helped destroy.

Whether it’s Bill Clinton defending the banks, or in this case,his Treasury secretary dismissing the importance of “too big to fail,” it’s wonderful to see that even after the trillions down the toilet and millions of unemployed, they still don’t get it.

(In typical Bill Clinton fashion, he later flip-flopped and showed support for the anger aimed at banks. Amazing speaker, but I still can’t stomach seeing him.)

Team Clinton’s Robert Rubin somehow misses a key point about the need to break up “too big to fail” banks, while speaking with CNBC:

Robert Rubin, courtesy of the Treasury Dept.

Robert Rubin, courtesy of the Treasury Dept.

Calls by former Citigroup chief Sanford Weill, and others, to break up the nation’s major banks do not solve the risk problems at the heart of the 2008 financial crisis, Robert Rubin, former Clinton Treasury Secretary, told CNBC’s “Squawk Box” on Thursday.

A Citi board member from 1999-2009, Rubin said, “If you followed Sandy’s path, and you broke up the banks in some fashion or other … the risk isn’t going to go away. The systemic risk, the ‘Too Big to Fail’ risk, will move from one place to another place.”

Um, yeah Bob, but this misses the point. The point has been that the banks will always carry risk and look for new ways to cross boundaries and gamble, but when they do, it won’t be the public that has to bail their sorry asses out. The problem has always been about freeloaders, such as Rubin’s Citi, that require massive taxpayer bailouts so they can continue to pay massive amounts of money to their handout-loving bankers, like Ruben.

It’s not terribly surprising that Rubin still doesn’t get it though. Besides his own efforts to create the problems on Wall Street during the Clinton years, he then lined his pockets with tens of millions of dollars that was based on bogus deals that were stripped from the Citi books. Never once did Rubin offer to pay back that bogus money – ultimately money paid by US taxpayers – nor was he even asked to pay it back.

It’s no wonder he thinks the system is fine as it stands today. It’s his system, he created it, and he’s done quite well by it. Too bad it stinks for everyone else.

For those of you who missed it, Rolling Stone’s Matt Taibbi did an AMA on Reddit yesterday and of course, the subject of “too big to fail” did come up. It’s really worth reading the whole thing, including the issue of Mary Jo White running the SEC.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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  • http://adgitadiaries.com/ karmanot

    My kinda Noir Indigo.

  • lynchie

    You can’t even plunger these turds around the turn in the bowl

  • indc

    He and others like him create fantasy worlds for the rest of us to live in – if we want to- while he benefits handsomely because the fantasy world have very large and real benefits for him et al.

  • Mike Meyer

    How could a TRUE Third Party be a scam since it is yet to exist????

    The Republicans have been around for 153 years more or less. GOOD LUCK with that “crush them” thingy. THEMS THAT CAN’T LEARN will face ANOTHER 150 years before that happens.

  • Greedy 5% Plutocrats own 74% $

    Third Party… LMAO

    That’s just a money making scheme for suckers.
    Maybe more Republican presidencies will convince you.

    The Republicans must be crushed, and then we can talk…

  • Houndentenor

    We didn’t learn from the dot-com madness so within a decade we had the mortgage/credit-default meltdown which was even bigger. We haven’t learned from that either so it seems rather obvious that we are due in a few years from and even bigger meltdown that will be even worse. Since the same people are in charge and don’t seem to know any better and the banks are now bigger and fail-ier than ever…tick tick tick…

  • Bill_Perdue

    In a decent. socialist society this man and others like him would be sentenced to life at hard labor. Their personal fortunes, including real estate and other valuables would be confiscated.

  • Indigo

    Isn’t the Clinton Fantasy wonderful? It’s so much more Bright-Eyed than Obama’s Existential Noir.

  • http://twitter.com/WTHella Tornado

    Yeah and didn’t Rubin help the Clintonistas off Vince Foster and stage the suicide too?

  • Naja pallida

    Translation: I’m making a shit load of money off of this, as are all my buddies on Wall Street. I don’t know what your problem is.

  • Mike Meyer

    Rubin is owned by Goldman-Sachs, and he’s loyal. He’ll never turn on them in ANY way. Look at his age, why would he shoot himself in the foot at this point in life. Clintons are owned by the banks also.

    Third Party, Folks.

  • http://adgitadiaries.com/ karmanot

    Bill Clinton and Barack Obama are the twin steamers blocking the toilet bowl of reformation.

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