By Simon Johnson
By now you have probably realized – correctly – that “financial reform” has turned into a victory lap for Wall Street.
When they saved the big banks, with massive unconditional support (both explicit and implicit) over a year ago, top administration officials promised they would be back later to fix the underlying problems. This they – and Congress – manifestly have failed to do.
Our banking structure remains unchanged, the rules will be tweaked at the margins, and the incentive and belief system that lies behind reckless risk-taking has only become more dangerous. (The back story, if you can still stomach it, is in 13 Bankers).
There is only one small chance for any sensible progress remaining – and you are about to see this crushed in conference by the supporters of unfettered big banks. Continue reading “The Last Hold Out: Senator Blanche Lincoln Against 13 Bankers”