"Words that make actions speak louder."
Today, President Barack Obama will sign into law the first serious effort to regulate Wall Street in decades. The bill has much to be said for it, but the unfortunate truth is that it ducks several of the most critical reforms needed to protect our economy from banker abuse. As regulators work to implement the […]
Wall Street reform passed Congress today, with three Republicans voting “yes,” among them Scott Brown of Massachusetts. But Brown’s vote came with a high price tag: he insisted on both hammering ordinary citizens with new taxes, instead of imposing them on the financial behemoths that jeopardize our economic stability. And he punched an enormous loophole […]
Good news: The Senate just secured 60 votes to proceed on Wall Street reform, clearing the way for the legislation’s final passage today or Saturday. The legislation garnered the votes of every Democrat except Sen. Russ Feingold, D-Wis., who argued that the bill was too weak to support. Every Republican opposed the bill, except Sens. […]
Too-big-to-fail is a much bigger problem than you thought. We’ve all read damning accounts of the government saving banks from their risky subprime bets, but it turns out that the Wall Street privilege problem is far more deeply ingrained in the U.S. legal system than the simple bailouts witnessed in 2008. America’s largest banks can […]
When the nation’s most prestigious investment banks found themselves on the verge of total annihilation in the fall of 2008, the most radical and effective government response was not the infamous $700 billion Troubled Asset Relief Program. The wildest salvation scheme for Goldman Sachs, Morgan Stanley and the securities system at large was a plan […]
Heavy-hitting Wall Street political donors are withholding their money from the Democratic Party’s campaign coffers, according to a Washington Post report making the rounds on Capitol Hill today. In a political environment in which almost no group is as publicly reviled as a Wall Street executive, Democrats just scored a tremendous public relations coup. Good […]
Today, Goldman Sachs sent its second-highest-ranking officer to Washington, D.C. to tell the Financial Crisis Inquiry Commission that his company is staffed and managed by complete idiots. In an effort to evade investigation, Goldman Sachs Chief Financial Officer David Viniar claimed that his company really just doesn’t know how to do basic book-keeping. It was […]
Sen. Russ Feingold, D-Wis., is defending his decision to vote against the Wall Street reform bill on the grounds that it is simply too weak to prevent future crises, and Tim Fernholz is crying foul. On policy substance, Feingold is undoubtedly correct. From Feingold: At the start of this process I made clear that I […]
Members of Congress finished ironing out their differences on Wall Street reform last night, and the resulting bill deserves unequivocal support from progressives and conservatives alike. But while the final package is a necessary first step to overhauling the nation’s out-of-control financial sector, it will do very little to change the destructive status quo on […]
Astonishingly, as Wall Street reform enters its final hours a tired, generic corporate refrain against regulation is gaining traction. As bigwig bankers and their lobbyist brethren fight to defeat tough new rules on derivatives—the crazy casino that brought down AIG—all their sloganeers can come up with is the trite wail that serious rules will send […]