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Three Cheers for the Obama Economic Team before Advancing to the Next Battle August 10, 2009

Posted by Judy in Economy, Financial Regulatory Reform, FinancialStability.gov.
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We entered a severe economic downturn or “Great Recession”last September and have been losing higher numbers of jobs consistently, until recently, when the recnt economic data has started to look better. While we are still losing far too many jobs the numbers are not increasing by as much or looking as bad as they once did. The stock market has had another streak of gains for the past four weeks.

When they eneterd office the Obama economic team, Treasury Secretary, Tim Geithner in particular weathered harsh criticisms from both the right and the left. They also resisted both the right-wing group that wanted to “let the banks fail” and the left-wing group that wanted to “nationalize the banks.” As a result of ignoring both of these groups they have proposed a balanced plan for regulatory reform.

However, there seem to still be rocky scholas ahead on the regulatory reform front. Today , according to The Washington Post, Sen. Mark Warner announced through an op-ed in the Financial Times that he cannot support the Treasury Department proposal becasue it does not actually create a strong single regulator. While the Treasury’s proposal simply merges the Office of the Comptroller of the Currency and the Office of Thrift Supervision to create the National Bank Supervisor. The “Nationalize the Banks” crowd will flock to Sen. Warner’s proposal because it appears tougher then the Treasury proposal, however, one large agency can cause as many issues.

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