Article by Ian Firstenberg in El Tecolote, January 30, 2020
It has been over a decade since the financial markets crashed in 2008, spurring foreclosure of homes, job loss for millions and economic destitution for many. The effects of this crisis are still being felt by working Americans, but for Wall Street these effects are spelled with a dollar sign.
According to KQED, since PG&E—California’s massive utility company—filed Chapter 11 protection in January 2019, lawyers and consultants have made $217 million. Corporate banks have drawn $114 million in financing fees, a number that could exceed $1 billion by the time PG&E exits bankruptcy next year.
This comes as a narrative absolving Wall Street from blame for that financial crisis is being pushed by a new working paper, published by the Federal Reserve Bank of Philadelphia in December 2019.