If there’s one thing to be gained from the Fail Whale trade, it’s that one section of the political class has rediscovered the need for stronger financial regulations. Whether it’s the reinstitution of Glass-Steagall, limits on bank size or simple accountability, it has suddenly become worthwhile to mention that the status quo, even after Dodd-Frank, does nothing to ensure stability in the economy and a financial system that Americans can trust.
A case in point: the above ad. Eric Griego, a Congressional candidate in New Mexico in a competitive primary there in the 1st Congressional district, released this ad today making the specific message on bank accountability, unlike one that I’ve seen before. “Wall Street has gotten away scot free, and Congress has done nothing to hold them accountable,” Griego says to a crowd at the end of the ad. “I’m Eric Griego and I approve this message because I won’t stop until Wall Street bankers who broke the law go to jail.”
The ad was produced before the revelation of JPMorgan Chase’s dodgy trade, which has brought the theme of financial reform and bank accountability back to the fore. But the Fail Whale trade gives it new resonance.
Obviously, even if he’s elected, Eric Griego alone isn’t going to make the decision to jail bankers. And though she’s spoken eloquently on the subject over the last week, Elizabeth Warren won’t do it alone either. You still have a Presidential race being waged between a candidate who wants to repeal what meager financial reform we’ve put into place over the last couple years, and a candidate who, just yesterday, called JPMorgan Chase “one of the best managed banks.”
“JPMorgan is one of the best managed banks there is,” Obama said in an interview with The View, scheduled to air on Tuesday. “Jamie Dimon, the head of it, is one of the smartest bankers we got and they still lost $2 billion and counting. We don’t know all the details. It’s going to be investigated but this is why we passed Wall Street reform.” [...]
“This is one of the best managed banks,” Obama continued. “You could have a bank that isn’t as strong, isn’t as profitable managing those same bets and we might have had to step in. That’s why Wall Street reform is so important.”
It’s actually why we need to pass something legitimate. The trades in question were probably legal because of loopholes allowed in implementation by this executive branch. There’s a difference between “this is why we passed Wall Street reform” and “this is why we need to pass something that bans these practices,” and the latter is what we’re finally hearing from political candidates on the Democratic side, after years of silence.
Obviously, there’s comfort in cynicism and despair. And I don’t know why you would think anything related to the banks would be an easy lift. But until you get people to look at the world as it should be, you don’t have a chance of coming up with solutions. In a way you have to work right now on what happens during the next crisis. Conservatives have always gotten this, that you push your ideas when in or out of power, whether they have a chance of passing or no chance. Because someday, when you get the reins again, you’ll need something off the shelf. The events of the last week have put legitimate financial reform back on the shelf.




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” The trades in question were probably legal because of loopholes allowed in implementation by this executive branch. ”
A situation forced by voters electing a dictatorial Republican Congress which opposes Dodd-Frank and blocks any Obama appointees who would implement Dodd-Frank.
I know you think Obama should declare himself dictator, but you will then condemn a future Republican president using Obama declaring himself dictator to declare himself dictator and undo everything done by Obama, but also LBJ, Truman, FDR, and even Lincoln.
How the hell did you allow the Republicans to veto Diamond for the Fed – clearly your support for killing Diamond for the Fed signals the progressives supported killing Dodd-Frank in the 2010 elections.
Either we have a smart, savvy banker or a very dense president.
Smart people don’t run a organization that looses 2 or so billion in one trade.
You obviously don’t read fdl often, given your “dictator ” comment. We ‘re better known as O haters around here.
Dave, I just want to thank you for not giving in to despair when the temptstion is so stronng.
More like Mr. Griego, please!
Righto. I’ll drop my cynicism just as soon as JPM shareholders take Dimon’s CEO title & pay away from him.
I think pretend financial reform is back in vogue. Politicians will talk about it, some more than others, but when the time comes for heavy lifting, the reformers always will come up a few votes short due to the rotating villains and, if anything gets done, it will involve Wall Street getting more money.
And yet one more time, we will hear Obama blame the mean Republicans when it’s always the blue dog DINOS who make or break the passage of legislation in the Senate.
I am getting really disgusted listening to this constant whining refrain by Obama and the Democrats.
Just remember. folks… Obama’s second term will be worse than his first.
Who you gonna vote for?
uh…
what?
Thanks for the info; sorry that I’m still extremely cynical.
Hey: good for Mr. Griego! In all seriousness, that’s a great ad.
I’ll believe it when I see it, and not one nanosecond prior to any real, lasting, TRUE bank regs.
Mr. Griego is picking a good way to campaign. Seems to me that they ALL get bought off once elected (that is: IF they can manage to “win” given that our so-called “voting system” is broken & corrupted to). Plus who’s running against Mr. Griego? Will it be like Scott Walker in WI, where the so-called “Democratic” challenger won’t get one thin dime’s worth of campaign support from the putative “Democratic” party, whilst Mr. Walker rakes in barrel$ & oodle$ & bucket$ of sweet sweet ca$hola from the 1% with the connivance of the DLC??
Sorry: very cynical today. Mr. Griego *may* be sincere, but only time will tell if he can go the distance, much less be effective at making any changes.
Since Obama collected $2 Million from Wall Street execs just yesterday, it seems safe to say any rumblings over finance will go away with all due speed.
It’s always good when people are talking about this, but it means nothing when the levers of power are wholly owned subsidiaries of Wall Street, Inc.
Just more election posturing…
Your ignorance is appalling. Signing the NDAA disappearing act; declaring a “kinetic military action”, without Congressional approval, against Libya; and ordering the execution of alleged terrorists, including US citizens, by drone are all the actions of a dictator. You’re at least 5 cans short of a six pack.
Well, he’s only one Congressman. And if he’s serious, and gets elected, and does make as much noise as possible as one Congressman can make about the need for banksters to go to jail, then I want first dibs on his suicide in the pool. I say it will be self-inflicted single gunshot to the back of the head.
That’s a joke, in bad taste, but the point is serious. If this guy is serious, I’d bet money to donut holes his life is in danger if he gets elected and is any kind of position whatsoever to make too much noise.
This lack of any rule of law really sucks. Of course, the good news is, as Americans, being as exceptional as we are, we have a right to a CHOICE this November. And it’s comforting to know that we get to make a choice, even though, you know, no matter which choice we pick we still end up with the same old bullshit.
Anyone that votes for either of these two puppets deserves whatever either of them do. Vote third party. Write in. Just show up, VOTE, and vote for anyone other than the two idiots at the top. Believe it or not, that’s the BEST way you have, in the electoral process, of instituting real change.
your comments are very predictable.
Excellent point. That IS gonna make any banking reform about as likely as Charlie Sheen becoming a priest. Or, Sylvester Stallonw winning an Oscar. Or, Ted Nugent getting a “Kennedy Center Honors” humanitarian award.
I always thought eCAHN’s predictability was an asset.
Over at another liberal site, they are reporting the Justice Department is looking into the JP Morgan matter.
I thought we closed the DoJ. Who is the AG over there anyway?????
To Masoninblue @ 5:
Pretend financial reform it most definitely is – how can it be otherwise in an election year? We’ve been burned, bad, and we are NOT buying it. We saw what election year promises really mean last time around.
I just heard an interview on local radio with erstwhile liberal Democratic senator Tom Udall on the subject of the filibuster. The inane question was how could it be that we have ‘record’ filibusters in the Senate? Lengthy reply from Tom,( who to his credit did try to change the Senate rules in the erstwhile – not succeeding of course.) Now, however, he’s not going into that as the primary cause for the problem, oh no. According to new Tom, the filibuster now equals the filibuster then. So, it is all the Republicans’ fault. I say NOT! You cannot even equate what they now pretend (good word) is a filibuster with historic filibusters. Only the name is the same. But you wouldn’t know it from Tom’s longwinded answer – shame on you, Tom! I will not be voting for you, even if there is no third party alternative. Toeing the wimpy party line just promises more of the same and we are sick of it. Should the Republicans take over the Senate; I promise you will see Senate rules put in place to move their agenda posthaste. Because it has been the agenda of both parties all along. That is the only understanding that makes sense of what has been happening since (and even before) 2008.
The people know they’ve been hoodwinked. In good times the voting public is charitable with these games. Not now. Too late the phalarope.
So? What’s your point?
not very useful is it?
everything is screwed up, and nothing to be done about.
about sums it up as far as I can tell.
why bother?
Yeah, I guess you’re right.
Thanks for pointing that out.