Pres. “Bailout Barry” Obama has reportedly insisted that Sen. Dodd stop negotiating with Senate Republicans on the “financial reform” bill. You see, he thinks it’s good politics to have Harry Reid hold a cloture vote a day and label Republicans as tools of the Wall St. fatcats. This is a highly cynical strategy considering that the list of major donors to his election campaign looks like a rogues gallery of the architects of the great recession.
Fannie Mae/Freddie Mac: $126,349
Goldman Sachs: $994,795
JP Morgan Chase: $695,132
Morgan Stanley: $514,881
Even though Goldman Sachs has been charged by the SEC with civil fraud, President Obama has yet to return a penny of their donations. These companies made out like bandits thanks to the American taxpayer through TARP. All we have received in return is a nearly worthless AIG and stakes, along with the UAW in GM and Chrysler.
There is a reason that Goldman and the other big banks support Dodd/Franks, it’s because it decreases competition while promising nearly unlimited access to the federal treasury if their future bets go sour like those on the sub-prime mortgage market. The House bill caps taxpayer exposure at $4 trillion, the Senate bill doesn’t have a cap, which means unlimited exposure. How is this supposed to prevent the big banks from engaging in risky behavior? This bill is TARP on steroids, HGH and whatever else you’ve got. Instead it will mean that banks like USAA that serves our military and their family members’ will need to curtail the services they provide.
Senate Republicans should hold the line until they get major concessions that will actually benefit average Americans and not the politically connected big banks on Wall St.