Man Who Inspired Wall Street’s ‘Gordon Gekko’ Says Banking Crisis Is Imminent

Famed investor Asher Edelman participated in a Fox News roundtable last week discussing Democratic presidential candidate Elizabeth Warren’s plans to address income inequality in the U.S., and he offered an unsettling warning.

Edelman, on whom the character “Gordon Gekko” from the movie Wall Street is supposedly partially based, told the panel that the country is in serious danger of a banking system collapse.

“We’re in a crisis in America today. Part of it is the banking system,” he began. Edelman said Warren is not knowledgeable about the banking system but “has the right things in mind” in trying to address it.

“Without Glass Steagall coming back,” he said, referencing 1930s legislation separating commercial and investment banking that was repealed in 1999, “you’re looking at a collapse of the banks very soon.”

Fox News host Martha MacCallum asked if Edelman was referring to regulations placed on the banking industry as contributing to a potential collapse, and he offered a definitive no.

“Just the opposite,” Edelman said. “The regulations have had nothing to do with anything that is going on. The repo market has completely collapsed. No banks want to lend to the other banks anymore — nor can they, because they’re completely illiquid, supporting the hedge funds, derivatives, et cetera, in their business today.”

“The derivatives market is two and a half times the size that it was in 2007” just before the financial crisis, he said. “And the banking community is on the road to another disaster.”

Edelman also said that President Donald Trump — whom he viewed as superior to Hillary Clinton in 2016 on economic policy — is “endangering the economy” with his trade policy.

Noting that the U.S. is a consumer society, as opposed to a manufacturing society, Eldeman said “trade keeps the system going.” What Trump is doing, he added, “is bogging down trade, making things more expensive for the average people” while incomes have not risen meaningfully in ten years.

Watch the discussion here.





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