funny thing happened in 2012 after Andrew Ross Sorkin, a financial
writer at the New York Times, wrote his spectacularly false narrative
telling readers that the repeal of Glass-Steagall Act had nothing to do
with the crash because problem firms like Lehman Brothers, Merrill Lynch
and AIG didn’t own insured commercial banks — which would have been
prohibited under the Glass Steagall Act, had it not been repealed in
1999. In fact, all three of the firms did, indeed, own banks insured by
the FDIC at the time of the crash.
figured that Sorkin had just made an error, or, well, three monster
errors, so we wrote to his editor. We heard nothing. We wrote to the New
York Times public editor who is supposed to uphold the integrity of the
paper. Nothing. We wrote to the publisher. Nothing. To this very day, the errors remain in the Sorkin article.
When the so-called paper of record allows three outrageously wrong
errors to persist as fact, it doesn’t look like sloppy journalism, it
looks like a conspiracy to deny the public an honest narrative.
Sorkin’s lie has since been regurgitated by two other writers at the New York Times:Paul Krugman and William Cohan. The lie has also spread to President Obama and Presidential candidate, Hillary Clinton,
as a cover for why they won’t buck Wall Street and work to reinstate
this critically needed legislation as Senators Elizabeth Warren, John
McCain, Bernie Sanders and dozens of others in Congress are demanding. Marcy Kaptur’s legislation in the House of Representatives to restore the Glass-Steagall Act has 67 cosponsors. MORE