David Cay Johnston is on form again, this time on the Dylan Ratigan show alongside Bill Black, a thoughtful former banking regulator. My favourite quote, predictably, is this one from Black:
How does Wall Street even begin to justify the extractionism to the White House? “It’s the opposite of their narrative on everything else,” explains Bill. “On everything else, it’s exporting jobs from the United States – great thing! Business simply goes to where it’s most efficient. But — gasp! — we can’t lose the banking industry! It can’t go to the city of London! That would be a national catastrophe! And so it’s the race to the bottom with regulation,” says Bill.
I think it is important that somehow this London message – as highlighted in my recent blog, and more generally in the “Eurodollar” and “Griffin” chapters in Treasure Islands – starts to seep through to public consciousness in the United States. London is the great black hole of financial regulation that has played a central role in the slow demise of democracy in the United States, and its replacement by financial rule.
And while on the subject of David Cay Johnston, he has just done another excellent article for Reuters looking, among other things, at the latest TJN report on global tax evasion.