New Wall Street nightmare begins
Its presidential pick loses big, and one of its harshest critics heads to the US Senate. Where do bankers go from here?
Even worse, one of its biggest fears has come true -- Elizabeth Warren as Senator -- which may lead to an even bigger nightmare: Elizabeth Warren on the Senate's banking committee.
What's an embattled banker to do? Make nice, and fast. One Wall Street lawyer told The New York Times that the industry "made a bad mistake" in backing Romney so completely. "They are going to pay a price," he said. "It will soften over time, but there will be a price."
Romney's top five contributors were Goldman Sachs (GS), Bank of America (BAC), Morgan Stanley (MS), JPMorgan Chase (JPM) and Credit Suisse (CS).
But as Romney fades into history, Warren is coming on strong. It's kind of amazing to see one woman so completely rattle the industry, but that's what's happening after Warren's decisive victory over incumbent Sen. Scott Brown in Massachusetts. She helped create the new Consumer Financial Protection Bureau, but backed away from it when Congressional Republicans revolted at the idea of her as its first director.
She moved quickly into the political arena. "Wall Street CEOs -- the same ones who wrecked our economy and destroyed millions of jobs -- still strut around Congress, no shame, demanding favors, and acting like we should thank them," she said at the Democratic National Convention. "Anyone here have a problem with that? Well I do."
Now there are two questions surrounding Warren's entry into the U.S. Senate. Will she soften her tone in order to legislate effectively? And will she get a seat on the Senate Banking, Housing and Urban Affairs Committee, which oversees the financial services sector? A senior aide on that committee told Bloomberg that it's not a sure thing, and that a decision won't happen until January.
Senate Democrats, who watched Republicans block Warren from the consumer bureau she worked hard to create, may end up giving her the seat she wants.
But one Hill watcher -- perhaps a lobbyist hoping to sway the situation -- told Politico this week that the Senate Finance Committee would be a better fit. "The banks all have tax issues that are at least as important as regulations, and that's a better committee in terms of fundraising," said the anonymous insider, noting that Warren will be in high demand as a Democratic fundraiser. Plus, placing Warren on the finance committee instead of banking could be viewed as an olive branch of sorts to Wall Street.
That leaves Wall Street's powerful lobbyists with a clear mission: Get Warren as far away from the banking committee as possible.
As for the industry itself? It needs to mend fences with Obama, and then try not to get steamrolled over the next four years. As Warren and other new senators -- including Tammy Baldwin and Angus King -- flesh out their political and legislative ambitions, Wall Street will continue to be a prime target.
More from Top Stocks
You seem to be missing something....It is the golden rule, the one with the gold makes the rules. These guys are 10 times smarter than anyone in government. And they are always a step ahead. Obama is in way over his head and always has been. He nothing more than a trophy president he has zero business expense.
You fools that voted for him deserve what you get.
Stupid A**holes, did you think this crap could go on forever.
You have danced and now it is time to pay the piper.
Elizabeth Warren is another liberal socialist idiot. Banks did not cause the financial disaster GOVERNMENT FORCING BANKS to make UNQUALIFIED HOME LOANS is what destroyed the financial markets. IF idiots like Obama and Warren will STOP trying to "decide what 'FAIR' " is we would be doing alright. Who are they to decide what 'FAIR' is? Is that FAIR they decide that SOLAR ENERGY gets 90 BILLION dollars even though all the companies GO BANKRUPT or the FAIR is ZERO DONW HOME LOANS????
Hell those deals sure did not turn out "FAIR" to taxpayers but sure made a lot of FREE MONEY for Obama's supporters.
Making a mountain out of a molehill - RICH democrats don't want their $$$ screwed with, either.
I can't believe the number of democratic voters that still believe that Democrats are "just like us"
ROTFL! They get a salary most of us would dream to have, a retirement and healthcare package that's probally one of the best in the world.
Oh, and so many of them are MULTI-MILLIONAIRES.
Yeah, they just like us, which is why they "care so much" about us.
Copyright © 2014 Microsoft. All rights reserved.
The apparel chain takes a hard hit after blaming the weather for its quarterly sales decline. But cold temperatures don't explain the drop in full-year sales as well.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.