In a surprise announcement earlier this morning, Time Magazine brought forward its annual "Man of the Year" award - and conferred this honor on Lloyd Blankfein, CEO of Goldman Sachs.
Geithner is completely wrong if he thinks the financial reform bill now before Congress "has teeth." There is simply nothing there that will rein in our largest financial institutions.
There are two kinds of bankers to fear. The first is incompetent and runs a big bank. The second type of banker is much more dangerous. This person runs a big bank and -- here's the danger -- makes it even bigger.
The coming legislative debate will clearly divide people into "for" and "against" our massive global banks that have so manifestly gone bad. For the last time: Which side does the president really want to be on?
The longer we wait for real fiscal adjustments, the more Greece builds up debts and so needs an ever larger adjustment later. Such an end could be enormously disruptive: imagine nationwide strikes, violence, and chaotic default.
Government bond yields are rising rapidly today (currently the 10-year rate is around 7.5 percent). Unless there is rapid action by the international community, this has the potential to get out of control.
What we need is a change in the conventional wisdom in Washington, away from the idea that what is good for Wall Street is good for America, and toward the idea that we should be skeptical of the megabanks.
At the heart of the currently proposed legislation on financial reform there is a simple premise: Key decisions about exact rules going forward must be made by regulators, not Congress. This is a mistake of breathtaking proportions.
Sunday's package should make it possible for Greece to borrow short-term but it takes courage to lend for 5 or 10 years to the Greeks unless there is much more fundamental change.
If Senator McConnell brings 40 Senators with him, they will defeat the Dodd bill -- and then smash themselves into the rocks of November 2010 as the "too big to fail" party.
These huge banks will behave better only when and if their executives face credible criminal penalties. This simply cannot happen while these banks are anywhere near their current size.
Mr. Dimon regards himself as just trying to make a reasonable case regarding what is sensible public policy regarding banking. We would welcome a debate with him in any forum, preferably in public and with TV cameras present.
The president's rhetoric today at Cooper Union was commendable. But there is still the awkward question of legislation that would actually reduce the political power of big banks.
The Wall Street-Washington corridor is alive and well on its way to another crisis that will empower, enrich, and embolden insiders while impoverishing the rest of us.
Senator Chris Dodd is a tactical legislative genius - keep this clearly in your mind during the days ahead. In terms of maneuvering for the outcomes he seeks, managing the votes, and controlling the floor, you have rarely seen his equal.
Goldman Sachs is at a crossroads. Either they can significantly change their image in our society or they can face the consequences.
Mr. Luntz thinks this is about higher costs being passed on to consumers and wants to fight in November on "the Democrats are just about special interests." That would be terrific -- for the Democrats.
