The SEC’s fraud charges against Goldman Sachs (GS) made the Republican party’s attempt to fight the Dodd bill much tougher.
As of right now, everyone is figuring it’s a done deal, though of course that won’t stop the GOP from trying like heck, especially since Wall Street seems to have switched its allegiance away from the Dems.
Obviously the GOP has a tricky task because of the public’s anti-Wall Street mood.
So the strategy is to paint the Dodd bill as a bill that would perpetuate bailouts. If you go to Sen. Mitch McConnell’s website, most of the speeches and letters he has up attack the Dodd bill on the “no more bailouts” grounds.
But it’s also true that McConnell has recently met with Wall Street moneymen, and so we’ve been trying to figure out how to reconcile the line that the Dodd bill is too pro-Wall Street, with the fact that Wall Street apparently has the ear of McConnell.
In trying to figure this out, we stumbled on this article from Charlie Gasparino at Fox Biz written Monday, April 12:
About 25 Wall Street executives, many of them hedge fund managers, sat down for a private meeting Thursday afternoon with two of the most powerful Republican lawmakers in Congress: Senate minority leader Mitch McConnell of Kentucky, and John Cornyn, the senior senator from Texas who runs the National Republican Senatorial Committee, one of the primary fundraising arms of the Republican Party.
The stated topic of the meeting: The Financial reform bill being sponsored by Senator Chris Dodd, the Democrat and chairman of the senate banking committee. Both McConnell and Cornyn listened to numerous complaints the executives have with the bill. These included complaints about provisions that allow the government to continue to prop up financial institutions that are “too big to fail.”
Something just doesn’t add up here.
Are we really to believe that McConnell and Cornyn met with Wall Street, heard numerous complaints, and the most notable one from these Wall Streeters was that there were ‘provisions that allow the government to continue to prop up financial institutions that are “too big to fail.‘
Seriously, that’s what the Wall Streeters were complaining about?!
Obviously the meeting took place, and Gasparino does say that the complaints were numerous (i.e. the TBTF lien wasn’t the only complaint). But it still seems implausible that that was the main one that they brought up.
Any help in understanding this would be appreciated.
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