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May 20, 2013
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 Titan Over Wall StreetPosted on Apr 22, 2010The politics of financial regulatory reform are simple. After the meltdown and the bailout, many Americans—perhaps most Americans—are inclined to see Wall Street as predatory and all-devouring. Striding into the lion’s den and calling the beast to heel, as President Barack Obama did Thursday, was a move without a downside. Perhaps Obama could have scored more popularity points if he had ordered a few financiers to be led out of the Cooper Union auditorium in handcuffs. Then again, in terms of candidates for a perp walk, there were pretty slim pickings: Many of Wall Street’s leading luminaries stayed away, perhaps out of pique at the notion that mere elected officials would have the gall to tell Masters of the Universe how to run their affairs. “Unless your business model depends on bilking people, there’s little to fear from these new rules,” Obama said. Yet there is so much fear abroad in the land, or at least up and down Wall Street, that the big financial institutions are shelling out millions to try to torpedo the reforms. According to the Center for Responsive Politics, JPMorgan Chase spent $1.5 million on lobbying during the first quarter of the year, Citigroup spent $1.4 million and Goldman Sachs spent $1.15 million—for Goldman, a 70 percent increase over what the firm spent on lobbying during the first quarter of 2009. Reasonable people might ask: Why all the worry? Obama’s tone was not that of a sword-wielding avenger—he doesn’t do fire and brimstone—but of a stern parent explaining to party-hearty teenagers why their driving privileges are being curtailed. The president obviously doesn’t want to take the keys away for good, however. While he correctly described the gigantic, largely opaque derivatives market as “highly leveraged, loosely monitored gambling,” he went out of his way to say that he believes derivatives are useful instruments and that what he wants is to make the market transparent and accountable—not shut it down. Advertisement Obama didn’t really need to make a hard sell. It’s already apparent that despite the usual party-of-no bluster from Senate Minority Leader Mitch McConnell, Republicans realize that opposing tougher regulation of the finance industry is an untenable position. Sen. Charles Grassley has already defected, and there is no enthusiasm among the GOP rank and file for taking the side of Wall Street against, basically, the rest of the country. In terms of demagoguery, the best the Republicans have been able to come up with is a weak complaint that the Democrats’ proposals will not eliminate, for all eternity, the possibility of new bailouts of failing firms. “That makes for a good sound bite, but it’s not factually accurate. It is not true,” Obama said. “A vote for reform is a vote to put a stop to taxpayer-funded bailouts.” The truth is that the Republicans’ no-bailouts pledge is absurd and that Obama’s no-bailouts pledge is less absurd but hardly ironclad. No one should believe anyone who says the U.S. government will never, ever, spend a dollar of the taxpayers’ money to rescue another financial institution from its own greed and stupidity. Democrats want the financial industry to put its own money into a $50 billion “resolution fund” to wind down failing firms. But if another November 2008 moment should arrive, heaven forbid, and it looks as if a wave of imminent failures will crash markets around the world, the White House and Congress will surely do whatever it takes to avert catastrophe. After regulatory reform passes, Wall Street is still going to be a gambling den—less highly leveraged, more closely monitored, but still essentially a betting house. Anyone expecting truly fundamental change is going to be disappointed. What has definitely changed, though, is the political atmosphere. The president is on the offensive now; his opponents are scrambling to decide how to react. Obama should thank the misbehaving lords of Wall Street, because they have given him a way to get his mojo back. Eugene Robinson’s e-mail address is eugenerobinson(at)washpost.com.  TAGS:
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By Glen Wayne, April 27, 2010 at 7:11 pm Link to this comment
Put O-don In The Hoosegow empirePie April 27th, 2010
Put the don of donnybrook in the hoosegow,
to join the Hanks of the banks and the hooey maven of the think tanks
to greet their ‘greed is god’ puppeteer masters of the shadows.
Put the donnybrook don in the hoosegow
with the hacks and the Conrad Blacks and the skillful Skilling
so the killing making bilking sacks can trickle up to the hoi polli;
Oh joy! Oh joy!... to you and me and the still ‘to be’
Report thisBy rico, suave, April 26, 2010 at 3:21 pm Link to this comment
“Perhaps Obama could have scored more popularity points if he had ordered a few financiers to be led out of the Cooper Union auditorium in handcuffs.”
That’s right Gene, put your political opponents in jail. Just like they do in Cuba and China and Russia.
Moron!
Report thisBy minutemenmedia, April 25, 2010 at 1:08 pm Link to this comment
I think many of us may be missing an important “bait and switch” in the Financial Reform Bill.
Report thisThe house version created an “Agency of Consumer Financial Protection,” which was to be controlled by the Congress. Senator Brownback from Kansas wrote an Amendment, exempting Car Dealers from the proposed agency, and the Amendment passed. In Chris Dodd’s Senate Version of the Bill, however, a funny thing happened: The Agency of Consumer Financial Protection became the “Bureau of Consumer Financial Protection” which would be controlled by the Federal Reserve (not congress), and the Senate version of the Bill did NOT include any amendments—leaving ALL CAR DEALERS subject to “regulation.”
The Federal Reserve, coming off it’s most profitable year in it’s history, is now looking to take control of all Financing operations in dealerships (appliance stores, payday loans, etc) across the country, and being the Federal Reserve, that means we have no chance of auditing them of finding out where the money really goes.
This will complete Chris Dodd’s retirement package, $100K speaking engagements and a secure place in history next to the Rothschilds, Aldrich, JP Morgan and the Rockefellers ...
We’ve all been robbed, it’s a financial coup, in the planning for years, superseding the last two administrations, and propping us all up for another decade or so of planned crashes and bailouts.
By felicity, April 24, 2010 at 11:41 am Link to this comment
I wholeheartedly agree with gerard. AND, Obama is nobody’s fool. Blaming him for all the corruption in government, in the financial sector, (not to mention blaming him for the latest natural disaster by way of a god who is taking revenge on a people who have chosen a man to lead them who is the devil-incarnate) is so misplaced as to be incoherent.
Face it: What some people are really saying to the President is, “Go to the back of the bus, boy.”
Report thisBy gerard, April 24, 2010 at 10:25 am Link to this comment
“Republicans realize that opposing tougher regulation of the finance industry is an untenable position. Sen. Charles Grassley has already defected, and there is no enthusiasm among the GOP rank and file for taking the side of Wall Street against, basically, the rest of the country.”
Report thisThat’s where the change is, and Mr. Obama had nothing to do with it. The system itself signalled
rigor mortis and even the big boys know it.
What to do without doing it is the question. How to make needed changes and still hold the old profit-motive “system” together for another decade or so.
Now is a chance for all those aging MBAs and gurus from Harvard and Chicago to come up with guts enough to admit their mistakes, and creativity enough to put some shackles on their shekels.
By Leefeller, April 24, 2010 at 9:18 am Link to this comment
Watching politics is like the new fad puppy smashing,
both make me sick to my stomach. Accountability is not an
option in Washington or Wall Street either, well maybe to
themselves!
Obama, carrying a wet noodle on the bitty pulpit! I like
scolding, maybe scolding should be used instead of going
to war?
Obama seems to be running interference between public
Report thisopinion and special interests, real nice of him, Wall
STreet should appreciate it when the time comes!
By reynolds, April 23, 2010 at 11:35 am Link to this comment
the obummer business is tired. it was tired when it
Report thisissued from the lips of dr. sewage. whatever your
point, it is diminished by the whinging tone in which
it is voiced.
a ceaseless negative harangue is hardly relevant
commentary. the savage nation is, in fact, the weiner
nation.
By AT, April 23, 2010 at 11:28 am Link to this comment
(Unregistered commenter)
It’s the money stupid!When the money ran out what are the Republicans going to do. More lies and wedge issues to divert from the real issue. what’s in store for corupt politicians?
Report thisBy ofersince72, April 23, 2010 at 10:54 am Link to this comment
“Obama should thank the misbehaving lords of Wall Street
because they have given him a way to get his mojo back”
doesn’t even need a comment.
Report thisBy felicity, April 23, 2010 at 9:43 am Link to this comment
Washington is a town that pays more attention to discretion and loyalty than to success or vision.
The president (as well as the thousands of lobbyists representing the corrupt financial sector) lives in Washington.
Discretion and loyalty? Sounds like the Mafia.
Report thisBy Anarcissie, April 23, 2010 at 8:23 am Link to this comment
So where’s the titan? I thought we were going to get Mr. O in a Superman suit, only with a dollar sign instead of an S on his chest.
Report thisBy balkas, April 23, 2010 at 7:11 am Link to this comment
Here we see once again; for the millionth time sensationalism sans causationalism.
It seems to me that some people solely blame lobbyism as cause for all ills in US.
But, of course, never the house of horrors and terrors! Nor the governance or laws under which everything functions in US or anywhere else!
These people cannot or won’t see this. It is not use of money that is primary cause of many ills; it is, i aver, some people and their dictatorship over majority. tnx
Report thisBy shivers, April 23, 2010 at 4:13 am Link to this comment
(Unregistered commenter)
good luck. we need a tiger, and we have a lazy house cat for a president. thanks Obummer!
Report this