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Doherty channels his inner Elizabeth Warren

May 16, 2012

Brendan Doherty is breaking with conservative Republican orthodoxy on financial reform. In a statement, Doherty cites the J.P. Morgan Chase $2 billion trading loss and calls on Congress to enact Wall Street reform and reinstate the Glass-Steagall wall between commercial and investment banking.

“The latest multi-billion dollar trading debacle by J.P. Morgan, one of our largest financial institutions, shows that Wall Street has not learned the lessons from the Great Recession,’’ says Doherty.

“It also highlights the federal government’s failure to enact real and necessary rerfom of our financial sector,’’ said Doherty. “Instead, Congress passed the massive and loophole-ridden Dodd-Frank law which was an open invitation for Wall Street to hire lobbyists to write its own rules and regulations.’’

Doherty goes on to assert that “the partnership between Wall Street and Congress is exactly the kind of crony capitalism that endangers free enterprise and the principles of economic opportunity that America is supposed to stand for.’’

The Glass-Steagall firewall was razed during the administration of Democrat Bill Clinton after prodding from Republicans, particularly then-Sen. Phil Gramm of Texas. (Clinton has since said signing the measure into law was a mistake). Democratic incumbent David Cicilline,  Doherty’s likely general election opponent, has signed on to legislation that would reinstate this regulation.

But tougher financial rules on large banks have been largely thwarted by Republicans in Congress, despite calls from Democratic leaders and the Obama White House for stronger regulations on `too-big–to-fail’’ financial institutions.

In the aftermath of the J.P. Morgan trading mess, Doherty’s stance is probably smart politics in the Rhode Island 1st Congressional District. Ironically it is much the same tack that Democrat Elizabeth Warren has taken against Republican Scott Brown in Massachusetts marquee U.S. Senate election.

4 Comments leave one →
  1. benagami permalink
    May 16, 2012 4:23 pm

    In my opinion, this is merely a ploy to get ahead of the 38 Studios debacle. If he doesn’t distance himself from the Republicans that gave away taxpayer money to rich businessmen, he’ll never get elected.

  2. deeds permalink
    May 16, 2012 4:44 pm

    Who made all the typos? Doherty or Scott? I’m still stuck on Jamie Diman saying “that’s life” regarding the loss. Still his board protected his position and perks. I dare the government to help them out on this one.

  3. May 16, 2012 6:02 pm

    Repeal od Glass-Stegeall was pushed by Robert Rubin Clinton’s Sec’y of Treasury who then went on to become chaiman of CitiiBank and made zillions from the manipulation of the markets that bank investments made possible under the repeal.,

    This is the same CitiBank that was part of the cause of the Great Recession and ultimately received billions in the TARP funds bailout, and is now posting huge profits despite their public complaints about reform and loans outstanding.

    The roles played by Clinton/Rubin and Wall Street Republicans over the years just proves the adage that the real “two-party system” is not Demorats and Republicans but the “ins” and the “outs” that powerful insiders control. And now the press reports that President Obama and Michelle have $ 1 million on account at JPMorgan-Chase.Does it ever change ? Not for the real players,money always will prevail. .

    A historical irony in this latest debacle of rhe $ 2 billion loss at JPMorgan due to bad risks taken after bailouts is that the line of money influences traces back a century to the real J.Pierpnt Morgan and all his corporate “trusts” that President Teddy Roosevelt tried to reform. He was a Republican that Wall Street opposed as he became a “progressive”.

    If Teddy were alive today he could rightfully say ” I told you so ” ! But those kind of Republicans don’t seem to exist aymore and powerful Democrats play the same game.

    William Jennings Bryan and FDR notwithstanding, some powerful Democrats might as well be Republicans.despite their platitudinous utterances about advocating for the “middle class”.

  4. May 16, 2012 6:19 pm

    smart post joe

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