The fighttps://en.m.wikipedia.org/wiki/ List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Averageres below list the 5 biggest market % changes. Note that the next biggest change from 1932 was in 2008. Yet still no calls to repeal CFMA.
Rank Date Close Net change % Change
1 1933-03-15 62.10 +8.26 +15.34
2 1931-10-06 99.34 +12.86 +14.87
3 1929-10-30 258.47 +28.40 +12.34
4 1932-09-21 75.16 +7.67 +11.36
5 2008-10-13 9,387.61 +936.42 +11.08
Brooksley Born is noted in Wikipedia in the paragraphs below. She was CFTC for Clinton and resigned after her position to regulate trades in the CFMA was rejected:
"The program concluded with an excerpted interview with Born sounding another warning: "I think we will have continuing danger from these markets and that we will have repeats of the financial crisis -- may differ in details but there will be significant financial downturns and disasters attributed to this regulatory gap, over and over, until we learn from experience."
In 2009 Born, along with Sheila Bair of the FDIC, was awarded the John F. Kennedy Profiles in Courage Award in recognition of the "political courage she demonstrated in sounding early warnings about conditions that contributed to the current global financial crisis". According to Caroline Kennedy, "...Brooksley Born recognized that the financial security of all Americans was being put at risk by the greed, negligence and opposition of powerful and well connected interests.... The catastrophic financial events of recent months have proved them [Born and Sheila Bair] right." One member of the President's working group had a change of heart about Brooksley Born. SEC Chairman Arthur Levitt stated "I've come to know her as one of the most capable, dedicated, intelligent and committed public servants that I have ever come to know", adding that "I could have done much better. I could have made a difference" in response to her warnings."
Brooksley Born truly was right but apparently, the financial powers that be are not amenable to having the truth shouted about. Futures contracts are routinely shuffled about among speculators who have no intention whatsoever of taking delivery of the commodity they are trading in. Furthermore, inexplicably, contracts are allowed to be purchased on as little as 5% margin which is totally insane. The value of the derivative markets now exceed the entire world GNP. (Here I use the "P" in GNP reservedly since there is so little actual "product" involved We may as well scrap out the "P and replace it with "R" for revenue which is truly what it is.)
Born ran up against the powerful triumvirate of Greenspan, Summers and Rubin (and probably Paulson) with no one on her side to fight. A damn shame.