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Posted by on Jan 21, 2010 in Markets, USA, Worldwide

New Found Spine or Mass Wake Up Call?

James Pethokoukis, a blogger for the Reuters, thinks that Scott Brown’s win in the Massachusetts senate race could mean that Obama will declare war on Wall Street. Sure enough, in just 24 hours since his article (Brown win could spark Obama war on Wall Street) was posted, the President announced sweeping restrictions on size and scope of banks. The President’s proposal would:

Limit the Scope – The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit. [..more]

It is high time he did something about these pigs. I am also happy to see that the great savior of US economy, Mr. Volker, is now pretty much calling the shots. If there is one person who can save this economy by doing the right thing, it is Mr. Volker. Fror the past 12 months, he has been sidelined by Summers and Geithener, who are too cozy with Wall Street and big banks. It is also high time Mr. Obama kicks Summers and Geithner out from his administration.

Banks, bonuses and bailouts – busted? Is this a new found spine for the President? Or, is it a reaction to the wake-up call he got from Massachusetts? Whatever it is, I don’t see the bank executives shivering in their boots. I will believe it when I see some concrete action – not just talk.

After all, they don’t have to laugh all the way to the bank, because – they are the banks!