Hillary Clinton's Take on Banks Won't Hold Up
The Democratic frontrunner seems to be counting on America's ignorance about the 2008 crash
"Hillary, like her close advisor Barney Frank, has been pushing an idea that banks aren't at the root of any financial instability problem. Last night, she pointed a finger instead at "shadow banking," non-bank actors like AIG, and a dead investment bank in Lehman Brothers. (Interesting she didn't mention a still-viable investment bank like Goldman, Sachs, which has hosted her expensive speaking engagements.)
This squeamishness about criticizing banks is laughable to people in the industry. But of course, that's probably the point – that the average voter won't know how absurd and desperate it is to point to faceless "shadow" financiers as villains when the real bad guys are famed mega-firms that are right out in the open, with their names plastered all over every second city block.
...Whether or not you think Hillary Clinton plans on doing anything to fix Wall Street corruption really comes down to your read on her intentions. Both regulators and criminal prosecutors already have enormous theoretical power over the market. They're not particularly handicapped by a lack of regulatory tools. The issue is how much political will a future executive plans on exerting.
By going out of her way to downplay the influence of bank corruption, Hillary is probably signaling that she doesn't plan on leaning into the reform effort all that much. This is consistent with her history as a politician who has accepted an enormous amount of money from Wall Street (both in donations and speaking fees) and has surrounded herself with policy advisors who in many cases bear primary responsibilityfor the very messes we're talking about.
It's smart politics, well thought-out. Or is it? The modern Democratic Party seems forever to be looking for nuance, when taking a stand would do just as well. Let gay people be soldiers, don't invade the wrong country, break up dangerous banks. An idea isn't automatically bad just because it's simple.
Read more: http://www.rollingstone.com/politics/news/hillary-clintons-take-on-banks-wont-hold-up-20151014#ixzz3ofCJaVNk
Updated On: 10/15/15 at 02:43 PM