Despite the Democrat’s endless tough talk on Wall Street, no one is doing more to help Goldman Sachs and other giants of the financial industry than Democrats themselves. Ironic isn’t it?
Last week Senate Republicans allowed Chris Dodd’s financial regulation reform bill to be opened for debate on the Senate floor, despite the fact that as it stands, the bill essentially institutionalizes bailouts and furthers the “too big to fail” system. But Republicans are not throwing in the towel, just picking a new battleground.
On April 14, Kentucky Sen. Mitch McConnell said this, according to USA Today:
“For nearly two years, the American people have been telling us that any financial reform should have two goals: it should prevent the kind of crisis we experienced in the fall of 2008, and it should ensure that the biggest Wall Street banks pay for their own mistakes. Yet the bill we’re being asked to consider doesn’t even begin to solve these fundamental problems. It exacerbates them.”
The reason Dodd and Harry Ried are having such a tough time with this particular agenda is because they cant even get the Dems on their side. While the majority of Senate Democrats support the Dodd bill, a number, like California Sen. Brad Sherman have been willing to call the bill what it is. According to Politico, “The Dodd bill has unlimited executive bailout authority,” Sherman said on April 19. “That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.”
The Hill reported on Wednesday that Rep. Scott Garrett (R-NJ) was outspoken against the bill which he says will, at best, “be perpetuating the system that we [already] have.”
“Garrett went on to say that Dodd’s bill benefits larger banks at the expense of smaller banks and taxpayers,” The Hill blog said.
But what might be the most telling fact is that Goldman Sachs actually wants this bill, and they’ve said so. Goldman has explicitly stated that it is in favor of regulation. Washington Examiner columnist Timothy Carney explains, “Goldman can play it safe, you see, without needing a regulation. But regulations prevent smaller competitors from taking the risks needed to compete with Goldman.”
Then again, maybe it’s not so confusing, considering that Obama and Goldman Sachs are…shall we say, so well connected? Last week we found out Greg Craig, former Obama advisor will represent Goldman in their SEC civil fraud suit.
Finally, it shouldn’t be too big of a surprise that Dems aren’t throwing more than rhetoric at Wall Street. After all, Wall Street contributed a good $12.7 million to democrats during the 2008 election cycle, double what was given to Republicans. The simple fact is that Democrats owe something to Wall Street that Republicans don’t.
Lets initiate some real accountability, some real reform that doesn’t have to cripple Wall Street, but doesn’t institutionalize bailouts, and expand our bloated government either. If you want to help scratch Wall Street’s back, vote Susan Davis. But if its accountability and responsibility you’re looking for, vote Friedman in June!