Thursday, April 22, 2010
Wall Street is in a giant poker game with Congress. It is a game bankers and traders will lose, but they are playing to the bitter end anyway. They are upping the stakes with more and more lobbying while the reputations of banks and investment houses are dragged through the mud in the media and on the Hill. This is a time to fold and try for a regulatory bill that does the least damage to their interests. However, it appears that some of Wall Street is taking the stance that it will oppose any new regulation. What is interesting is the silence in the media about what they are trying to do. Banks and investment houses are making no effort to persuade the public. Perhaps it is because the public won't understand the arcane rules. On the other hand, Wall Street means jobs and a threat to move jobs out of the country would be a powerful argument. It is a fascinating battle to watch, even if one knows the outcome.