So we all piled into the hotel bar last night and turned on our PDAs and laptops and basically did what we do at home. This despite not seeing one another generally. And it was loud and chaotic and I’m working on a few hours sleep. So I don’t have a whole lot to say yet about the primary results.
I will say one thing: The conventional wisdom has hardened that Blanche Lincoln’s nomination victory means that her derivatives language, including the Section 716 language for spinning off prop trading desks from the mega-banks, has a better chance of surviving. But she didn’t write the bill, and she didn’t defend it while she was in the middle of a primary. So who’s to say she’ll defend it now? There are enough different parts of the derivatives title, and people are confused enough about what it does, for her to claim “victory” even if Section 716 goes away. She took credit for the entire Wall Street bill during the runoff election, and as long as something passes she’ll take credit for whatever that is.
Our role is to explain what exactly ends up in the bill, so she cannot get away with such lies. But I don’t know how successful that enterprise will be.