Thursday, January 21, 2010

Aftershock of The Scott Brown Election

One may assert that it is merely a coincidence that The President has just announced a major banking reform the day after Republican Scott Brown captured Ted Kennedy's vacant Senate seat, but I have my doubts.

President Obama, with Paul Volcker standing in the background, has just held a press conference to say that going forward the banks will be restrained from using government subsidies to engage in proprietary trading and to sponsor private equity and hedge funds. We will see what comes of this. We will see if Congress rides herd, or tries to obstruct or otherwise water down any proposed legislation. If they do, that may be very unwise politically as elections are coming up and voters, as we saw in MA, are in a lather.

This move is a no brainer, and the fact that Paul Volcker, not Timothy Geithner, and/or Larry Summers, was the only advisor in attendance shaking Obama's hand after his announcement has this citizen more than a little intrigued. After all, the former Fed Chairman, has been, by most accounts, at least to date, a very marginalized figure in the Obama administration. But maybe, just maybe the times are a changing. I remain skeptical, yet hopeful.

5 comments:

Thai said...

I hope so but forgive me if I don't hold my breath just yet.

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DED said...

I'll hope so too.

Btw, Edwardo, you seem to be plagued by spammers these days. You must be doing something right to attract that kind of attention. ;)

Thai said...

DED, you are a half full kind of guy!

I will remember that. I actually really like that in people since it complements my half empty nature.

Be well

DED said...

DED, you are a half full kind of guy!

I am? Ok, I'll take your word for it, Thai. :)