The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

The new New Deal

For over a decade the triumph of the Anglo-American model of capitalism seemed assured: but no longer. So what happened to the Washington Consensus, and what new ideology might replace it?

A YOUNG ENTREPRENEUR builds up an energy empire that takes the US market by storm. He creates an impossibly complex financial pyramid made up of hundreds of subsidiaries, on most of whose boards he sits. He deftly juggles stock between these subsidiaries, making his company the toast of the stock exchange, until the market crashes, his investors lose millions, and he sinks in a matter of weeks from national hero to figure of hate. He becomes a symbol of greed and larceny and prompts the US president to promise to winkle out corporate crooks like him and clean up the economy. He goes into self-imposed exile. Sounds familiar? But it's not Enron's Andy Fastow: it's Samuel Insull (pictured right), one-time CFO to Thomas Edison and the archetypal bad capitalist of the 1929 crash.

Insull built up what ultimately became known as the Commonwealth Edison Company into one of the world's biggest corporations. After the crash, he became the figure who more than anyone inspired Franklin D Roosevelt's New Deal, with Roosevelt, not unlike George W Bush, promising to "get the Insulls".

Insull's fall marked the end of a long period of laissez-faire capitalism and the beginning of 30 years of regulation, government intervention and Keynesian mixed-economy strategies.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree