Is it just me who thinks this is a bad idea? Am I alone? I guess so, because even Republicans are OK with this one. How could that happen? Easy: It’s those evil, greedy Sith lord Wall Street executives! Like the ones at Goldman Sachs, who are appearing before the almighty Senate Tuesday to get grilled by the Senate Permanent Subcommittee on Investigations (sounds scary) about their so-called attempts to manipulate and profit off the crash of the housing market.
Beck showed video clips of Democrats and Republicans agreeing that a crackdown is necessary.
Sen. Chris Dodd (D-Conn.): Here we are, 17 months after someone broke into our house in effect and robbed us… and we still haven’t changed the locks on the doors.
Larry Summers, Obama White House Economic Adviser: These off-balance sheet, nontransparent vehicles with what people call implicit guarantees, invite these kinds of problems.
Sen. Richard Shelby, R-Ala.: We have to end once and for all the casino atmosphere on Wall Street, where they’re gambling, basically, on synthetic ideas and so forth — with somebody else’s money.
But while lawmakers focus on chewing out Goldman Sachs for a deal gone bad, they seem blissfully unaware of the degree to which the bank has penetrated the ranks of the Obama administration.
Beck noted that: William C. Dudley, president of the Federal Reserve Bank of New York, was a partner and managing director at Goldman; Gary Gensler, chairman of the Commodity Futures Trading Commission, spent 18 years at Goldman; Mark Patterson, chief of staff to Tim Geithner, is a former Goldman lobbyist; Philip Murphy, nominated for ambassador to Germany, is a former Goldman executive; Diana Farrell, deputy director of the National Economic Council, is a former Goldman employee; and Emil Michael, White House fellow, used to be an investment banker at Goldman.
With so many Goldman alumni in the Obama administration, “if Goldman really are the bad guys, we have bigger problems than just regulation,” Beck said.
In today’s Washington Times, Terrence Scanlon, president of Capital Research Center (my employer), opines that it is no coincidence that Obama’s SEC laid civil charges against Goldman Sachs just as the Democrats’ permanent bank bailout bill started being promoted.