The Spark

“The emancipation of the working class will only be achieved by the working class itself.” — Karl Marx

Bank Reform Bill Passes; Banks Win

Jun 28, 2010

On June 25, Congress agreed on a bank reform bill to send to the President. The bill was supposed to be a hard-hitting reform to stop the big banks’ ability to wheel and deal us into another crash of the economy.

So what happened the very same day that Congress agreed? Investors bid up bank stocks by three%! That was Wall Street’s verdict!

How could it be otherwise, when the banks own the Congress? The bank and hedge-fund lobbyists spun the bill into nothing but a gift for themselves. Derivatives trading, which brought us the collapse and scandals of the biggest of the big, like Goldman and AIG, remains in place in the same banks. “We wanted to make sure we didn’t drive all the derivative business out of New York,” said a New York congressman.

A banking analyst summed it up: “The banks will have numerous methods of getting around the ... bill to maintain their earnings growth. But the things they do will increase the cost of banking to everybody in this country.”

And as far as preventing the next collapse? The chairman of the very committee that wrote the bill said he wouldn’t know “until we face the next economic crisis.”

In other words, they all know that a new crisis is coming. And they are helping the banks to make as much money as possible before then, by helping them reach even more deeply into our pockets.