Five Years After Lehman, Could Another Collapse Be On The Horizon?…(YEP! Prepare!)
LARRY ELLIOTT and JILL TREANOR, The Guardian
SEP. 14, 2013
Seventy-five years before the trillion-dollar bankruptcy of Lehman Brothers in 2008, Franklin D Roosevelt had used his 1933 inauguration speech – in the depths of the Great Depression – to declare that the “money changers have fled from their high seats in the temple of our civilisation”.
He went on: “We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.”
In 2008, in the aftermath of the Lehman collapse, the words of the New Deal president were often quoted by those keen to rein in the excesses of Wall Street and the City. After Lehman there was no shortage of ideas on ways of restoring the temple, including breaking up the big banks into retail and investment arms, as they had been in the US under the Glass-Steagall Act of 1933.