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Thursday, April 22, 2010
Obama to Speak on Financial Reform
President Obama is scheduled to speak tonight about Wall street reform during the speech "Obama will charge that the financial crisis was 'born of a failure of responsibility -- from Wall Street to Washington -- that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression,'" The article claims that the White House feels as though it is winning the fight for reform and doesn't need to take the bankers "to the wood shed." "The president also will reiterate five key principles he wants to see in Wall Street reform legislation.They include ending the idea of a bank being too big to fail, enacting the Volcker rule -- named for former Federal Reserve Chairman Paul Volcker -- that limits the risks banks can take, making complicated financial trades known as derivatives more transparent, creating a consumer financial protection agency and allowing investors to have more say in the compensation of bank company executives." Do you think these are enough? Do you think this is political rhetoric or does it have a chance for bipartisan support? Personally I'm disappointed they aren't actively saying they want to bring back Glass Steagall. What are your thoughts?
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I do like the idea that investors and pension holders would be able to vote on executive pay packages. Maybe this will stop executives from giving themselves huge bonuses while the rest of the company is in a poor financial state. However, I'm pessimisitic that the financial regulation bill will be effective. It seems that Wall Street is very influential in Congress and they will able to stop or at find ways to get around regulations that are unfavorable.
ReplyDeleteI think it is are far reach for Obama to assume that Wall Street will support regulation for their companies. Wall street will do what is most profitable and they will certainly not want to support any law that curtails their wages.
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