The President picked a fight with the Big Banks and Wall Street yesterday, a fight that should have been fought before Health Care, but a fight nonetheless.
“Never again,” he said, “will the American taxpayer be held hostage by a bank that is too big to fail.”
Although Congress has been working on reform for a year now, it is finally coming to the forefront of the Obama Administrations priorities, partly because the people spoke in Massachusetts, and partly because the Banking industry has been plunging millions of dollars into D.C. to lobby reform away. This populist move by the President should create an interesting dichotomy between the GOP and the Tea Party folks, who have called for justice in respect to the financial bailout and TARP.
The President put it this way.
In announcing his proposals Thursday at the White House, Mr. Obama said if the financial industry wanted a fight over new restrictions; it was a fight he was ready to have.
But what does this mean for the GOP? Will the party of “NO” actually fight bank reform? Will they back guys like Warren Buffett who believes the Bank Tax is unfair? But does Buffett think the tax is unfair? Or that his investment of millions of dollars into Goldman Sachs is at risk? I’m not sure Mr. Buffett is going to be credible on this issue.
What will happen with the Tea Party crowd? will they become fractured? Obviously Bank Reform is needed so we don’t make the same mistakes of the recent past. But will the Tea Party crowd back reform? Even though it is imposed upon by the Government? Not to mention an Obama Government? Or will they actually support the big banks? Which would be a hypocritical move to say the least.
Can you see why Obama wants to have this fight? Simply, if there is one thing less popular then Obama’s health care bill, it is the Bankers and Wall Street, who’s risky behavior got our economy into this mess.
What will happen next will be very interesting to say the least, a continued obstructionist GOP, could be committing political suicide before the midterm election, if they oppose reform. While an already angry tea party, may very well look like, just an angry mob if they take a partisan stance on the issue of bank reform.
Only time will tell.
Elizabeth Warren is the chair of the TARP Congressional Oversight Panel, and probably the most credible source when it comes to the inner workings of TARP and the Bailout. She is a breath of fresh air, in a room full of political hot air.
Please take a moment to listen to her non-partisan opinion of the pending Bank Reform legislation by the White House.
It is well worth listening to.