The Reasoned Review

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Bank Taxes and Campaign Finance

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Felix Salmon over at Reuters brings up a good point:

If you look at Obama’s rhetoric during the announcement (”if these folks want a fight, it’s a fight I’m ready to have”), the enemy is Big Finance — and certainly the Republicans would not look good if they attempted to filibuster a bill like this. The real problem, however, is the Democrats, who are surely more desperate for financial-industry money than ever, given yesterday’s Supreme Court ruling, and who have in recent years raised much more money from Wall Street than Republicans have.

This makes a lot of sense, and is yet another reason why Mr. Obama’s “bank regulations” will likely fail to accomplish anything. He needs their money too much. 2010 elections are just a few months away, and the “Democrats” are widely predicted to take a beating. But keep in mind that the “Democrats” raised almost twice as much money than their “Republican” counterparts in the 2008 cycle. Now, with the Supreme Court basically signing a massive pro-corruption law, Mr. Obama will feel much more pressure to court the financial industry (the only ones these days who have any money at all.)

Remember, Goldman Sachs was Mr. Obama’s number-two contributor – and now that they don’t have to worry about those pesky “campaign finance” laws, they’re free to donate literally billions of dollars to see Mr. Obama re-elected in 2012. That is, if he gives them reason to do so. My sense is that whatever half-assed “financial reform” Mr. Obama was planning just got a huge bucket of water thrown on it.


Written by pavanvan

January 23, 2010 at 11:51 am

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