Jack & Jill Politics

Finally The Prez is saying to Wall Street — no more Mr. Nice Guy — on behalf of the American people. If you aren’t sure what all the financial fuss is about, I highly recommend watching Jon Stewart’s clear and concise (and funny) explanation on Goldman Sachs and the Obama Administration’s hammer comin’ down:

The Republicans are using faux-populism to back their crooked friends on Wall Street who profited at the expense of Main Street (meaning me and you). They’re trying to say it’s another bank bailout when the opposite is happening – it’s a crackdown. From Politifact:

Sen. Mitch McConnell said that new financial regulations under consideration in the Senate could lead to only one thing: bailouts.

“In fact, if you look at it carefully, it will lead to endless taxpayer bailouts of Wall Street banks,” McConnell said at a press conference on April 14, adding that it “actually guarantees future bailouts of Wall Street banks” and that it sets up “in perpetuity the potential for additional taxpayer bailouts of large institutions.”

Those comments must have sounded like fighting words to President Barack Obama. He directly rebutted McConnell, the leader of the Senate Republicans, in his weekly address.

McConnell has “made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite,” Obama said.

The debate is critical because voters hate bailouts. In fact, Republican pollster Frank Luntz advised opponents of regulation that “the single best way to kill any legislation is to link it to the Big Bank Bailout.”

We wanted to check McConnell’s claim that the new financial regulation “actually guarantees future bailouts of Wall Street banks” and that it would be at taxpayer expense.

The financial regulations under consideration in the Senate do a number of things: The government receives additional authority to regulate over-the-counter derivatives and hedge funds. A new consumer protection agency within the Federal Reserve will regulate financial products. And the bill creates a process for federal authorities to dissolve financial institutions that are teetering on collapse.

So…that sounds good, doesn’t it? Except to certain Republicans who seem to think that the only way to score political points is not to ensure that banks no longer abuse American citizens nor setup our country for another financial crisis — but to stymie Obama wherever possible to create an image of failure & deceit. Even other Republicans ain’t havin’ it. Again, Politifact is on it:

On the question of bailouts, we spoke to a variety of financial-services experts, and most (though not all) agreed that the bill would be a step in the right direction, in all likelihood reducing the risk of having the government having to undertake another bailout. That’s the case in part because the bill aims to heighten regulation in advance so that problems don’t emerge in the first place.

Sen. Bob Corker, a Republican, helped draft the orderly liquidation measures in the bill, and he has been arguing against McConnell’s assertions that the bill allows bailouts.

He was asked about the bill on MSNBC’s Morning Joe on April 20. “Does it ensure future bailouts as Mitch McConnell suggests?” asked host Joe Scarborough.

“There are some loopholes in the bill, no question,” Corker replied. “But generally speaking, the central elements of the bill absolutely do the opposite.”

Corker gave an extended speech on the floor of the Senate the day before, discussing many details of the bill, including the $50 billion fund.

“This fund that has been set up is anything but a bailout,” Corker said. “It has been set up in essence to provide upfront funding by the industry so that when these companies are seized, there is money available to make payroll and to wind it down while the pieces are being sold off.” (By the way, Corker has asked both Democrats and Republicans to cool down some of their rhetoric on financial reform.)

I agree with Sen. Corker — it’s time to all come together and do right by the American people where banking is concerned. Cuz if you’ve got a do right, all day woman (American economy), you need a do right, all night man (Wall Street)…as Aretha sang. And my hard-earned savings in my lil IRA is definitely not just a plaything.