13 Bankers: The Wall Street Takeover and the Next Financial Meltdown — CHAPTER 3: WALL STREET RISING

1. 1. Wall Street's share of U.S. corporate profits grew from 10% in the 1980s to 40% by the 2000s.
2. 2. Deregulation under Reagan and Clinton allowed banks to expand into securities, insurance, and derivatives, breaking down the Glass-Steagall barriers.
3. 3. The rise of securitization and derivatives, such as mortgage-backed securities and credit default swaps, fueled a massive increase in financial sector leverage and risk.
4. 4. The efficient market hypothesis and academic finance theories provided intellectual cover for deregulation and risky financial practices.
5. 5. Wall Street compensation skyrocketed, with average pay in finance reaching 4 times that of other industries by the 2000s.
6. 6. The 2008 financial crisis was preceded by a concentration of assets in too-big-to-fail banks, with the top 5 banks holding over 40% of U.S. banking assets.
7. 7. The savings and loan crisis of the 1980s cost taxpayers an estimated $150 billion, yet similar regulatory failures were repeated leading up to 2008.
8. 8. Junk bond financing and leveraged buyouts in the 1980s, pioneered by Michael Milken, transformed corporate finance and increased debt levels across the economy.
9. 9. The financial sector's political influence grew through campaign contributions and lobbying, ensuring deregulation continued even after crises.