Wall Street's $26m lobbyists gear up to fight Obama banks reform

[UpInArms]

Source: The Guardian

Banks are mobilising a smooth-running lobbying machine in Washington to battle Barack Obama's plans to limit the size and scope of Wall Street institutions, as financial services firms gear up to stop a shake-up that could slice away large chunks of their operations.

Their influence on Capitol Hill is broad – the top eight US banks spent $26m (£16m) on lobbying efforts last year, an increase of 6% on 2008 despite their financial woes, according to Congressional records. And in the first 10 months of 2009, the financial industry donated $78.2m to federal candidates and party committees – more than any other business sector – according to political research institute the Centre for Responsive Politics.

"The power of the financial services sector in this city has not dissipated at all … they've just done things in a quieter way," said Ethan Siegel, an analyst at financial consultancy The Washington Exchange, who monitors Congress for big investors. "They haven't pulled back on their lobbying just because they've become piñata in the press."

<snip>

The Financial Services Forum, which represents 18 top banks including Goldman Sachs, JP Morgan and Citigroup, says the problem of institutions becoming "too big to fail" ought to be tackled through more effective supervision, and by creating an authority able to wind down failing firms, rather than by forcing them to shrink. Spokeswoman Erica Hurtt said: "This was not a trading crisis and these proposals miss the mark. They won't get to the causes of the crisis."

Read more: http://www.guardian.co.uk/business/2010/jan/24/wall-street-lobbyists-banks-obama

[PSPS]

1. Don't worry, boys. Obama gives a good speech but he rolls easily when needed.

[Sultana]

2. BULLSHITE

[FrenchieCat]

4. So in otherwords, it doesn't matter what Obama says or does....he's getting fucked from both sides!

Keep it up.


Soon you'll have some new friends to help you.

[OhioChick]

3. K&R n/t

[msongs]

5. mr. O can veto any further welfare bank bailouts nt

[twitomy]

6. The banksters need reigned in;

Glass-Steagell needs reinstated. (thnx Clinton). Fat chance it eve happening now that O is effectively neutered....