And Gordon Gekko Wept…New Book Blames Financial Crisis On “Reckless” Greed

by:  Peter J. Gallagher

In the movie Wall Street, Gordon Gekko famously claimed that "greed is good."  A new book out by Pulitzer Prize winning New York Times reporter Gretchen Morgenson begs to differ.   In her book, "Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon," Morgenson lays the blame for the financial crisis squarely at the feet of Fannie Mae, and particularly its CEO James Johnson, who built the quasi-governmental entity into "the largest and most powerful financial institution in the world."  While government regulators sat idly by, Fannie Mae allegedly "fudged accounting rules, generated big salaries and bonuses for its executives, used lobby and campaign contributions to bully regulators, and encouraged the risky financial practices that led to the crisis."  To read more about the book, including an excerpt, check out "How 'Reckless" Greed Contributed To Financial Crisis" on NPR's website.

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