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The banks are whining… that is a good start…

It’s “Volcker lite“…

I’m very interested in any proposal that has the banks whinging like this Bloomberg video of Rob Nichols, the president of the Financial Services Forum… (an excellent rebuttal to Mr. Nichols arguments from the Epicurean Dealmaker)

Here is the German CEO of Deutsche Bank commenting on regulations proposed for US financial markets. He doesn’t like them either.

Although President Obama has put forward only the broadest outline of some proposals to rein in risk taking at banks it has caused some heat on Wall Street… we should think of falls in the Dow as a gauge of the potential effectiveness of a Washington proposal… the harder the drop in the Dow the more effective the proposed law or regulation…

Whether elected politicians have the nerve to stand up against Wall Street is another question… Mr. Nichols says in the Bloomberg video that they are already starting to have “conversations on the Hill”… it’s the start of a new lobbying rodeo…

Goldman Sachs, for example, employs a stable of its own lobbyists that cover the Congress and various regulators. Here is how they were deployed in 2008… Goldman filed reports showing they spent $3,310,000 on this activity…

No. of Reports Listing Agency (max of 11)*

Here is the reporting on outside lobbying firms that Goldman Sachs paid in 2008 to do political lobbying on their behalf from opensecrets.org:

So as the President makes announcement from the White House Goldman Sachs go up on the Hill and  marshal all their influence to water down and undo any efforts to change the rules.
Given what I’ve seen on the Hill Goldman lobbyists will be very successful in helping craft the legislation that the Senate Banking Committee will be drafting to reform our financial system.
I have a proposal for the members on the Banking Committee. As you get whitepapers and pitches from lobbyists post them online for everyone to see. Give House representatives and their staff, academics, market participants, state and federal regulators, bloggers and citizens a chance to see what the arguments are from all sides. Let’s crowd source these complex issues. It’s likely that you will get the American people on board with your efforts. Keeping the process secretive will only increase voter concern.
Should the new legislation favor the banks or the people? Time to choose… choose wisely…

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