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One important part of the battle to toughen the regulations on the financial industry that created so much of the current economic crisis is over President Obama’s proposal for a consumer protection finance agency to stand up to Wall Street on behalf of folks who aren’t counting their bonuses these days.

Harvard Law Professor Elizabeth Warren is leading the fight for the new agency that the Huffington Post outlined earlier this week.  Warren explains clearly what is at stake in the Senate fight.

 …(it) will show whether we are going to let the industry continue to write the rules — to keep the cops off the beat — or whether the financial crisis actually changed something.

It will also show us if the financial industry still runs Congress—and don’t bet against it.

3 Comments

  1. IBXer

    January 22, 2010 at 9:21 am

    So the best way to make sure an industry that is vital to the US economy is successful is to make sure no one wants to work in that industry… sounds like a great plan to me.

  2. gregflynn

    January 22, 2010 at 10:41 am

    An industry that lends $20,000 to anyone with a pulse and charges 30% interest is so “vital” to our bubble economy.

  3. IBXer

    January 25, 2010 at 11:15 am

    Greg, it was the government that was forcing them to lend the money “to anyone with a pulse” that forced the industry to have such high interest rates in order to cope with the inevitable losses.