The Wall Street bankers are making it personal. They’ve bailed on Barack Obama.
Mitt Romney has said
Presidential campaign contribution data compiled by the
Is Dodd-Frank the real reason, or enough of a reason, for The Street to abandon Obama? Taking risk out of the financial system – big-bank profits be damned – was an intended feature of the Dodd-Frank bill, not a bug. The objectives of financial reform shouldn’t suddenly be a surprise to the financial services industry. Are these bankers really nervous they’ll have to start making money the old-fashioned way – earning it? Isn't the political and economic environment,
The FDIC, Federal Reserve, OCC and SEC didn’t release their coordinated proposal for implementation of the dreaded Volcker Rule until October 2011, almost a year and a half after the Dodd-Frank law was passed. The CFTC just released
The Dodd-Frank reforms, especially the Volcker Rule, may scare the living bejesus out of certain bankers. But we’ve a long way to go, in my opinion, before any reforms that may be enacted can be blamed directly for weakness in bank earnings or used as justification for lower bonuses. According to
In addition to delays in Dodd-Frank implementation thanks to effective financial services industry lobbying, there’s a
The SEC is also helping big banks that will be accused of wrongdoing by
The Justice Department has not filed any charges arising from the SEC cases against banks or bank executives for bad conduct related to the sale of mortgage securities. The DOJ closed its criminal investigation of Countrywide, one of the largest subprime mortgage lenders, and its former chief executive, Angelo Mozilo.
I don’t see much that these bankers should be afraid of. On the contrary, I think the Obama administration has been a great friend to giant banks even though it’s getting tougher for the administration to ignore the 99% of the population they said they would represent when elected.
With nine months to go until the election, the TBTF bankers are voting for “business as usual” with their wallets. But they had better manage their risk and develop a contingency plan. Their big bet on Romney to maintain the status quo might not pan out and they’ll be stuck with Obama. Maybe that’s not as bad an outcome as the complainers would have you believe.
Francine McKenna writes the blog