The Consensus On Big Banks Shifts, But Not At Treasury

clipped from baselinescenario.com By Simon Johnson, co-author 13 Bankers: The Wall Street Takeover and The Next Financial Meltdown In the best profile to date of Tim Geithner, by John Heilemann in New York Magazine, even the Treasury Secretary himself expresses frustration with the biggest banks – calling them “the warlords”. David Brooks argued in the New York Times on Friday – writing about a different industry – that this is unavoidable, and perhaps normal: More specifically, however, it’s not that “people in the same field begin to think alike”, but rather that “people who are supposed to regulate” begin to see the world through the eyes of the biggest private sector players.  Note, for example – and this is important – most hedge fund managers agree big banks are dangerous and will again mismanage risk in a reckless manner.