Barack Obama, Scourge of Wall Street?

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Contra Mike Konczal, Tim Fernholz argues that if you actually look at the details, the Obama administration was pretty consistently on the side of firm bank regulation. It’s true that they didn’t support the Kaufman-Brown amendment to break up the banks, but Tim says they did support a wide range of other good proposals:

The idea that Treasury “always end[s] up leaving their fingerprints on the side of less structural reform and in favor of the status quo on Wall Street” is false. In terms of structural reform, Treasury — and President Obama in particular — were the strongest advocates in government for an independent consumer finance regulator. Other structural reforms that they supported, including merging two bank regulators, the Volcker rule, the (delayed but still real) Franken amendment for ratings-agency reform, serious constraints on the Fed’s emergency bailout powers, the new derivatives regime, the new liquidation authority, and higher capital requirements for the largest banks, including new-fangled contingent capital. Treasury had been talking about reducing risk since this project got under way.

Hmmm. I sure don’t recall Treasury fighting for higher capital requirements in legislation. I thought they pretty consistently wanted that left to the Basel III negotiations instead. And I guess I’m not as sure as Tim that they were ever really behind Blanche Lincoln’s derivatives proposal or Al Franken’s ratings agency amendment until passage was all but assured — at which point it didn’t matter much.

But….Tim follows this stuff a lot more closely than I do, and he makes a decent case if you read through his full post. I’m not sure I’m convinced, but since I wrote about this yesterday I recommend Tim’s post for the other side of the story. It’s worth a look.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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