They've got muck; we've got rakes. TPM Muckraker
Yesterday after the Bloomberg story broke Dow Jones called Taylor to follow up.
[Taylor] said he had just gotten off the phone with someone who told him, "Stop talking. You're smearing the whole industry." The caller, he said, was a former MSRB chairman, whom he wouldn't identify.That's right, Taylor is smearing the industry! (As opposed to a decade of corrupt practices that have sent numerous bankers and public officials to prison and sullied the careers of politicians as prominent as New Mexico Governor Bill Richardson.)
But Taylor doesn't blame his old pal; he thinks the problem is "systemic", as they say:
Formed in 1975, the MSRB has 15 members, but its board is dominated by the banking industry and securities dealers, which account for 10. The other five are public members, one of whom is supposed to represent issuers, one investors and three of whom are non-affiliated.Incidentally, the board of the New York Fed is set up in a similar way. And serving as its public "conscience": former Goldman Sachs chairman Stephen Friedman. The MSRB denied Taylor's allegations as fast as you can groan "disgruntled former employee." Here's hoping former New York Fed president Tim Geithner feels his disgruntlement.
Taylor said he also ran into difficulties with the board because of his insistence that public members have no connections with the municipal industry and never made money from the industry. The public members, he said, were supposed to be "the conscience" of the board, but one now is a former member of a bond insurance firm, "and bond insurers weren't representing investors."