Sidney Sheinberg Quotes
There's a very big difference between negotiating to borrow billions of dollars on behalf of MCA and negotiating to borrow 28 cents in connection with making independent pictures.
Weinraub, Bernard. "At Work With: Sidney Sheinberg; A Former Hollywood Giant Takes On a New Role: Underdog." The New York Times, 12 June 1997, p. C11.
The result was regulation of the banks and the creation of the SEC to regulate the stock market, However, over the years, the regulations were not able to keep up with the sophisticated development of new forms of investments and financial instruments and the financial industry were able to speculate with other people’s money in ways that FDR and his reformers never imagined. Finally, even the regulation that did exist was weakened by the policies of the George W. Bush administration and the combination brought about the Great Recession of 2008 where the profits from excess speculation were privatized and the losses, socialized with the taxpayer and the American worker bearing the brunt while most of the speculators were bailed out and made more money than ever. The Obama administration tried to reform the situation, but was unable to put an end to the legal speculation with other people’s money or of having institutions that were “too big to fail.”
Volker was trying to reform the excesses of the banking industry in the aftermath of the Great Recession where the banks had to be bailed out by the American taxpayers.
The early credit markets were basically quite simple and stayed that way until the latter part of the 20th century when they became more complex and sophisticated. In the beginning of the 21st century, they had become so sophisticated and complex that often the people and companies selling them could not understand them or their implications. The government regulators also were in the same boat.
Sidney Jay Sheinberg was an American lawyer and entertainment executive. He served as President and CEO of MCA Inc. and Universal Studios for over 20 years.
