Reply #52: Good news

[florida08]

thank goodness Tim isn't the president

My sources tell me that one key Democrat, Treasury Secretary Tim Geithner, is actually somewhat more pro-banker than moderate and heartland senate Republicans when it comes to derivatives reform. He is sympathetic to Wall Street complaints that the Lincoln bill would eat into derivatives profits, and has weighted in on the side of watering down her bill. Happily, he doesn't vote, but President Obama should decide the administration position and not leave it to Geithner.

A little history is reassuring. For all of his personal resolve, it took Franklin Roosevelt seven years and several pieces of landmark legislation to complete the New Deal structure of financial regulation that kept Wall Street well harnessed until the late 1970s - including the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Act of 1935, ending with the Investment Company Act of 1940. Even in that golden age of reform, Wall Street wasn't tamed in a day.