In today's lead editorial, the New York Times lays it out, loud and clear. In an editorial about financial reform, they point to the sudden GOP opposition, and identify the cause as the aggressive nature of the Democratic approach. The Republicans had assumed the bill would be watered down. When it wasn't, they went on the attack.
Of all the regulatory changes under consideration, the outcome of derivatives reform is arguably the single most important issue for the banks. Why? Because derivatives are where the money is.
An overarching aim of reform must be to ensure that all derivatives deals — many of which currently trade as one-on-one private contracts — are moved onto transparent, fully regulated exchanges. If that happens, banks stand to lose potentially billions of dollars in earnings. In addition to reducing systemwide risk, transparent trading would lead to more competitive pricing.
The Times says the bill is imperfect, but the Republicans aren't criticizing it for that. Their criticism is based on false arguments. In a word, lies. Republicans lying about reform legislation? Act surprised. And celebrate the aggressive approach by the White House and Congressional Democrats. This is what happens when Democrats stand tall and force the Republicans to reveal themselves for what they are.
The money quote, from the Times:
The White House and Democratic leaders need to push back hard against Republican posturing, making it clear to Americans that robust reform is the only way to protect the system — and taxpayers — from a repeat catastrophe. When Republicans try to block reform, they are doing nothing more than shilling for the banks.
That's your bumpersticker, on the issue, and for this year's campaign season. The Republicans are shilling for the banks. People should know.