Our experience with the Obama administration thus far does not make me stand up and cheer at his announcement today of proposed legislation to reduce the power of the big banks. Seeing Paul Volcker in back of the president as he made the announcement did raise some hope that Obama may finally be ditching the stand-pat urgings of Geithner and Summers. Maybe Obama will finally act on this vital issue.
It sounds as though he wants to reinstate a version of Glass-Steagall and prevent the banks from investing in proprietary trading. And there appear to be some words to limit the size of the banks. Will he have the courage to move on this? Or, will he agree with Tim and Larry tomorrow? Will he begin a crusade on what is necessary to prevent a recurrence of the Great Recession? That's what it's going to take- a crusade - as the lobbyists work hard to continue their winning streak.
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