Matt Taibbi: How Financial Reform was Killed

May 13th, 2012
in econ_news

Econintersect:  Matt Taibbi is the understated journalist who coined the phrase “great vampire squid wrapped around the face of humanity, shark-jawsSMALLrelentlessly jamming its blood funnel into anything that smells like money.”  He made this statement in the opening paragraph of an April 2010 article in Rolling Stone to describe what he characterized as “the world's most powerful investment bank.”   In a new article from the May 24 edition of Rolling Stone, Taibbi has another graphic analogy:  He compares the Dodd-Frank Act as the legislative analogy to “the fish reeled in by Hemingway's Old Man – no sooner caught than set upon by sharks that strip it to nothing long before it ever reaches the shore.”

Follow up:

Thus Taibbi thinks that not only “Dodd-Frank is groaning on its deathbed,” it is actually as good as buried as just a skeleton with no flesh left on its bones.

To what does Taibbi attribute this demise?  Very simply he sees a concerted partnership of Wall Street Banks, the president, Congress, the Democratic party, Senator Scott Brown (R, MA) and  Rep. Paul Ryan (R,WI).  This is Econintersect's attempt to come with his short list.  To get a flavor of his focus, here is a listing of the major section headings in the Taibbi article, what he calls the steps of a five-point strategy:

STEP 1: STRANGLE IT IN THE WOMB

STEP 2: SUE, SUE, SUE

STEP 3: IF YOU CAN'T WIN, STALL

STEP 4: BULLY THE REGULATORS

STEP 5: PASS A GAZILLION LOOPHOLES

Editor’s note: No vampire squid here, just an outline of how a hit squad operates.

John Lounsbury

Sources:









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