We said earlier that Obama came to Wall Street and delivered a fairly conciliatory speech, and that judging from what we know, there’s very little that will pass that will have much of an effect on how the financial industry works.
Mike Konczal boils down the whole reform regime into a single sentence:
The realisation, and I’ve reflected on this a lot, is that we are rebuilding the 2007 financial sector with some additional legal powers for regulators to exercise in the middle-of-the-next financial crisis.
That’s it. Nothing changes in terms of doing business. Only when there’s another crisis will regulators have expanded have a more wind-down powers and a few other tools.
Now whether you think this is a good thing probably depends on whether you’re Konczal, and you work for the Roosevelt Institute (and thus you’re appalled), or you work for Goldman Sachs (GS) or JPMorgan (and thus you’re elated).
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