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.
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Elizabeth Warren got elected in spite of outright lies on her heritage and her academic background. I think more then the bankers need to worry with this happening. Heck Jesse Jackson Jr got re-elected and we haven't seen him for 6 months including on the campaign trail. How did that happen?
Goes to show you, we, are the enemy as, we, the electorete keep doing these STUPID things of electing individuals like this. Where I live we are stocking up on ammunition and locking and loading. No telling when these stupid people and the Socialist President will be coming for what we have including our guns we use to hunt with.
"When the people find that they can vote themselves money, that will herald the end of the republic."
Here WE go, Same Old BS. If the politicians REALLY CARE ABOUT THE AVERAGE PERSON, they would stop all this BS and protect our interest in this country. That's all they care about is GETTING RE-ELECTED AND KEEP ALL OF THE FREEBIES THAT THEY GAVE THEMSELVES. Sure wish this election would of turned out differently. People don't realize what will happen in the next 4 years.
I feel that my vote was wasted, don't know if I will ever vote again. This system is so CORRUPT.
We are not after socialism, we just want the banksters to stop robbing us all by dipping into our treasury at every opportunity and then laundering the money through offshore accounts.
The Spire Law Group LLP is already taking these criminals to court. Seeking the return of 43 trillion dollars worth of ill gotten gains. Alot of the Wall Street folks and a fair few higher ups in government have already been implicated and served their deserved subpoenas to appear in court. Now if Ms Warren can join the fight, all the better. I predict that Mr Holder might just find his sorry butt in jail for his part in the theft.
Why do people think that this is a battle of Wall St. versus Dems? When the stock market tanks because of liberal policies and "sticking it to the rich", my 401K tanks too.
My lower-middle class finances are the ones taking the hit for all this bickering. Thanks a lot. Guess I need to get on welfare, food stamps, and section 8 housing soon so I can be a stay-at-home bum and leech like they want me to be.
Like many of you, I believe money should go to those who work for it. Sitting around, eating pizza, watchng TV, waiting for grandpa to die so you can inherit his stock portfollio isn't work. Clipping coupons so you can collect stock dividends isn't work either.
People who've been to business school have no idea how to run a business, so what they also do isn't work. Actually they tend to do more harm than good. Their "management" is the anti-work.
We need business executives who can think. Folks who know that without producers there's no product. No product, no business. Folks with facts at their disposal, instead of that silly nonsense coming out of business schools.
"My biggest surprise upon taking office was how little power the president actually has."
George H.W. Bush
Can anyone say "Glass-Steagall Act" ?? This needs to be put back into place and enforced. Without it, or something new,..that says and does the same.,..(AND) is correctly overseen,...these crooks on Wall Street and in Politics will continue to rape our financial system until there is 2 classes left "THE RICH AND THE Poor!" 99% will be POOR! (We are almost there now!).........Waaay too much hidden agendas and loopholes. Where exactly did all the bailout money go? and how is it being paid back and at what intrest rate?? The people need specifics not meaningless lip service and round about statements about "Change" with no real plan to do it.
All politicians have too much to gain by not resolving these issues and even more by allowing the banks run politics and make policy which has been the way since the start of Deregulation of the people's money and the banks that have it. U.S. Citizens,..Open your eyes!
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All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
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