Sign In
SHARE
Credit Crisis Schadenfreude
Compared with politicians in other countries, German political leaders usually seem a drab, stolid sort, the occasional spy or sex scandal notwithstanding.
But when it comes to global finance, they are apt to make bold pronouncements.
In 2005, the chairman of the Social Democratic Party, Franz Müntefering, referred to private-equity firms as "locusts."
Now, Germany's finance minister, Peer Steinbrück, says that the credit crisis threatens the United States' status as a financial superpower.
"The United States will lose its status as the superpower in the world financial system," he said. "The world financial system will become more multipolar."
The cause of the credit crisis, he told the Bundstag today, is the "irresponsible overemphasis of the laissez-faire principle."
Steinbrück pointed to the quest for maximum profits and huge bonuses.
"Investment bankers and politicians in New York, Washington and London were not willing to give these up," he said.
Of course, Herr Minister has a personal reason to be bitter about the credit crisis. Steinbrück is on the supervisory board of the state-controlled bank KfW, which transferred some $425 million to Lehman Brothers a little more than an hour before the Wall Street firm filed for bankruptcy protection.
"Germany's Dumbest Bank!" screamed the front-page headline in the newspaper Bild.
by Jeffrey Cane
Also on Portfolio.com:
- Tough Times, Even in Tinseltown
- How Did We Get Into This Mess, Anyway?
- Credit Crunched: A Special Report on Wall Street Chaos
- Wealth in America: Portfolio.com and CNBC Take the Country's Economic Temperature
Loading...
Thank you for registering as a Portfolio.com Insider. Your comment has been added.
Create Your Public Profile
- ACBJ to relaunch Portfolio.com
- May 20 2009 1:44PM EDT
- 44, Day 97: On Golf, Swine Flu, and a "Hallmark Holiday"
- Apr 26 2009 5:39PM EDT
- 44, Day 96: Where's the Suggestion Box?
- Apr 25 2009 2:10PM EDT
- 44, Day 95: Let Them Have Student Loans
- Apr 24 2009 6:49PM EDT
- Stressing Out Over Stress Tests
- Apr 24 2009 2:14PM EDT
- King of the Private Equity Hill
- Apr 24 2009 8:23AM EDT
- 44, Day 94: What's in Obama's Wallet?
- Apr 23 2009 6:39PM EDT
- Madoff Clawback Campaign Targets Ex-Clients
- Apr 23 2009 3:00PM EDT
- Merrill, Muzzle, and the Mob
- Apr 23 2009 1:45PM EDT
- 44, Day 93: Earthly Concerns
- Apr 22 2009 7:14PM EDT
- Stanford Prosecutor Arrested for Assault
- Apr 22 2009 5:47PM EDT
- IMF Downgrades the Global Economy
- Apr 22 2009 2:00PM EDT
- Ackman Opens His Target Slate to Questions
- Apr 22 2009 11:51AM EDT
- Freddie Mac Acting CFO Found Dead
- Apr 22 2009 8:42AM EDT
- 44, Day 92: About Those Interrogations
- Apr 21 2009 5:53PM EDT
Archive
