Aaron Glantz’s award-winning investigative journalism has sparked over a dozen congressional hearings and criminal probes. His latest book, “Homewreckers,” takes a shocking new look at America’s 2008 housing crisis. It’s a tale of greed and corruption, as Glantz pulls back the curtain on a group of Wall Street magnates who he says took advantage of a rigged system. Moreover, as Glantz tells Hari Sreenivasan, these “homewreckers” include key members of President Trump’s inner circle.
The 1999 repeal of Glass-Steagall was unfairly blamed in the aftermath of the 2008 financial crisis. Some people—apparently Mr. Cohn among them—mistakenly believe that investment banking is so risky that it should be once again kept separate from commercial banking. The truth is exactly the opposite: Traditional investment banking entails very little risk. The danger is stand-alone investment banks that are not diversified enough to survive a shock.