Is the Party REALLY Over?
Posted by Larry Doyle on March 27, 2009 11:58 AM |
There is NO doubt that our financial markets and financial firms will experience significant changes in regulation on a going forward basis. Turbo-Tim Geithner laid out those plans this week. President Obama is hosting the heads of the major banks at noon today to lay the groundwork for the universal acceptance of the new rules, amongst other topics.
Over the next few weeks and months, new regulations will be defined and a new division of responsibilities will be outlined amongst the various bodies (Fed, Treasury, SEC, FDIC, FINRA, CME). Rest assured, there will be some power grabs by the heads of these agencies and regulatory bodies in the process.
We have clearly just come through an ENORMOUS party on Wall Street, leaving our entire economy with a MASSIVE hangover. Do not forget, though, as with any good party, we need to review who was working the door, who got let in, who got the discount cover, who brought some attractive friends, and who was taking a little something on the side. I won’t dare venture as to who left together.
I am referring to the corruptible campaign contributions and massive lobbying dollars allocated by the Wall Street crowd to the “fun crowd” in Washington who were also partying like it was 1999!!
Will there be new regulations imposed on campaign finance during this process? If not, perhaps the next party won’t be on Wall Street but there will definitely be another venue with a great band and lots of eye candy for everybody!!