Saturday, March 21, 2009
When Frank Rich AND MoDo think the pooch is going to need the Vaseline.
Then it must be time for President Obama to put aside the soothing rhetoric and start getting medieval those whom President Theodore Roosevelt termed "malefactors of great wealth". Perhaps what Frank and MoDo, among others, are saying might cause President Obama to re-examine the priorities for his upcoming plan on financial regulation.
The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.Executive pay may be a favorite whipping boy, but reinstating Glass-Steagall would be a much more salubrious act.
The outlines of the plan are expected to be unveiled this week in preparation for President Obama’s first foreign summit meeting in early April.
Officials said the proposal would seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, whose problems could pose risks to the entire financial system.
It will propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated. And to protect consumers, it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules.
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