It's appalling that banks are fighting to continue the same kind of behind-the-curtain risky trading of derivatives that brought this nation to its knees. Even worse, some members of Congress are right with them, opposing the Obama administration's efforts to overhaul the financial regulatory system.
President Barack Obama needs to make his case to the public that his Wall Street reforms are a reasonable safeguard against the behavior that triggered our economic collapse. He should make it impossible for elected officials to pretend that the status quo is in the public interest. The Security and Exchange Commission's lawsuit filed last week against Goldman Sachs, which is accused of selling mortgage investments that were set up to fail, gives the president a good place to start.
When Congress takes up the issue this week, its priority must be to bring transparency to the trillion-dollar derivatives market. Senate Minority Leader Mitch McConnell is leading the opposition to the proposed legislation. That's rich: McConnell's biggest campaign contributors are big banks, who have lined his pockets with more than a million dollars over the past five years. The Kentucky Republican is making noise about wanting to ensure that the bill prevents future taxpayer-funded bailouts. Don't be distracted. The real fight is over derivatives.
For more: Editorial: Obama should forge ahead with financial reforms - San Jose Mercury News
President Barack Obama needs to make his case to the public that his Wall Street reforms are a reasonable safeguard against the behavior that triggered our economic collapse. He should make it impossible for elected officials to pretend that the status quo is in the public interest. The Security and Exchange Commission's lawsuit filed last week against Goldman Sachs, which is accused of selling mortgage investments that were set up to fail, gives the president a good place to start.
When Congress takes up the issue this week, its priority must be to bring transparency to the trillion-dollar derivatives market. Senate Minority Leader Mitch McConnell is leading the opposition to the proposed legislation. That's rich: McConnell's biggest campaign contributors are big banks, who have lined his pockets with more than a million dollars over the past five years. The Kentucky Republican is making noise about wanting to ensure that the bill prevents future taxpayer-funded bailouts. Don't be distracted. The real fight is over derivatives.
For more: Editorial: Obama should forge ahead with financial reforms - San Jose Mercury News
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