Has anything changed in banking regulation since the crisis of 2008? Consider the case of MF Global Holdings Ltd., a New York-based securities firm that filed for bankruptcy protection on Oct. 31 after disclosing sizable exposure to derivatives and other investments related to billions of dollars in European sovereign debt. The firm was headed by Jon Corzine, a former CEO of Goldman Sachs who subsequently went into politics and was elected U.S. Senator and, later, Governor of New Jersey. In this video clip, “Daily Show” host Jon Stewart compares and contrasts the positions and behavior of Jon Corzine, the politician, with Jon Corzine, the CEO banker.
John Mack, Chairman of investment bank Morgan Stanley, says that in the wake of the global financial crisis of 2008-09, the number one issue for the financial industry is regulation. “We need to find some link to bring regulators around the world together, and a more systematized way of communicating and understanding risk,” Mack says. “We need to figure out a way that we have a systemic risk manager and make sure they have the resources to understand, monitor and help regulate our industry.”