Obama and Romney Prepare for Debate in Boca Raton, Epicenter of Financial Crisis

Monday, October 22, 2012

In 1994, a group of young J.P. Morgan bankers met for a weekend retreat in the South Florida city of Boca Raton. As Gillian Tett, assistant editor of The Financial Times, details in her book "Fool’s Gold: How the Bold Dream of a Small Tribe at J. P. Morgan Was Corrupted by Wall Street Greed and Unleashed a Catastrophe," the retreat included hard-core drinking, partying, and, eventually, brainstorming.

It was that weekend in June 1994 when bankers from J.P. Morgan's swap department conceived of credit derivatives, a creative financial tool that would allow banks to loan money with almost no risk. 

We now know that credit derivatives helped hasten the housing crash, which led to the financial crash, which leads us to today, back to Boca Raton, where President Obama and Mitt Romney will go head-to-head in their final debate, at Lynn University, tonight. 

Gillian Tett explores the beginning of the financial crisis, examines its fallout, and explains the state of the derivative market today.

Guests:

Gillian Tett

Produced by:

Arwa Gunja and Jillian Weinberger

Comments [4]

Dedra

Great site you have here but I was curious about if you knew of any discussion boards that cover the same topics discussed here?

I'd really love to be a part of community where I can get feed-back from other knowledgeable individuals that share the same interest. If you have any suggestions, please let me know. Thanks a lot!

Mar. 07 2013 12:38 AM
Glenn Gromann from Boca Raton, Florida

That is not what Boca Raton means, a popular myth. Second the ecomic collapse was a result of Goverment artifically facilitating the securitization market through Fannie Mae and Freddie mac and the failure to enforce proper underwriting guidelines by bank and other regulators becuse the Democrats did not want to alienate their not so credit-worthy constituents, this then expanded to a free for all and frenzy for everyone to take advantage of the system.

Oct. 22 2012 05:18 PM
Larry Fisher from Brooklyn, N.Y.

Mouth of the Rat is what it translates into.

Oct. 22 2012 01:09 PM
Beyond Dollars & Sense from USA

Once again, we see that capitalism's excesses caused the near-collapse of the global market economy, not government over-spending and not "socialism.
http://beyond-dollars-and-sense.blogspot.com/

Oct. 22 2012 09:23 AM

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