Saturday, April 17, 2010

Obama Abandons Kanjorski Plan

On the Huffington Post Paul Kanjorski wrote this column about "Too Big To Fail" back in November, 2009.

"Too big to fail" must die. I am preparing legislation to empower federal regulators to rein in and dismantle financial firms that are so large, inter-connected, or risky that their collapse would put at risk the entire American economic system, even if those firms currently appear to be well-capitalized and healthy. Never again should American taxpayers have to bail out high-flying financiers when their risky bets go sour.

The economic meltdown we narrowly averted last year rightfully convinced the American people that we need to re-examine the fundamental structure of our financial system. Wall Street financiers, however, seem to think that -- now that they are basically stable thanks to American tax dollars that kept them afloat during the worst of the crisis -- they can just go back to business as usual.

Evidently Paul Kanjorski with all his senority couldn't convince his boss. Today President Obama urged Senate Democrats according to this Fox News report to nix the $50 billion dollar fund designed to finance the liquidation of a big financial institution facing collapse, a victory for Senate Republicans opposed to government-supervised and government-funded corporate bailouts.

"The fund was not in our original proposal we announced almost a year ago and we don't feel it is an essential part of final legislation," a senior administration source told Fox. "The President will only sign a bill if it passes the test of putting an end to bailouts."

There is one thing missing in the Fox News article. That would be Paul Kanjorski's name. Evidently his claims to the public aren't as powerful as he wants us to believe. They are more powerful in his own head. I guess Obama no longer believes Kanjorski is the right team member for his plans.

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