going back to the resolution trust corporation in the crimes of the savings and loan crisis their responseby the industry after that scandal of the eighty's early eighty's was to change the law to make it easier to commit massive fraud sunset of trying to curb abusive behavior the lobbyist for wall street were allowed to change the laws to make it easier to commit abusive behavior and the abuses have gotten much bigger much more leverage much more fallout bigger bailouts and destruction of the economy let me ask you this. fessor being a well rounded intellectual if we go back to seventeen ninety and the words of john locke when the sol civil contract is broken the people must result if we have bankers writing the laws to give them the ability to commit and i'll call it john karr's i committed massive fraud and massive criminality and when you let this happen hasn't a social contract itself be broken your thoughts professor yes i agree orally macs are or even take it a step further it's not just the social contract in the united states that it's is at stake here it is capitalism itself and

law and author of lawless capitalism for us or professor emeritus was previously at the resolution trust corporationand also known for sort of starting with the securities exchange commission. professor welcome to the kaiser report. thank you max thanks for having me all right let's start with an f. global one of the most audacious crimes in the finance sector last year john karzai is of course x. calm and sax next governor of new jersey and a big fundraiser for obama did it get away with a crime and if so what's crime or crimes professor. well as i often tell my students merrick's the only way to know for sure someone's guilty of a crime is to take it to a jury and wait for it and see what the jury says in terms of whether or not there is evidence beyond a reasonable doubt but subject to that yes it certainly looks like someone got away with a crime when i was at the securities and exchange commission we as part of our unfortunate program monitored broker dealers and one of the fundamental things we tried to achieve was to make sure the broker dealers never read a customer perspective of trading so