Senator Sanders Blocking Key Obama Nomination. Harper's reports that Senator Sanders has put a hold (along with a second unknown senator) on the nomination of Gary Gensler, a former Goldman Sachs employee and "derivatives cheerleader," who President Obama wants to head the Commodity Futures Trading Commission.
Harper's includes Senator Sander's statement on why he opposes Gensler for the position: While Mr. Gensler is clearly an intelligent and knowledgeable person, I cannot support his nomination. Mr. Gensler worked with Sen. Phil Gramm and Alan Greenspan to exempt credit default swaps from regulation, which led to the collapse of A.I.G. and has resulted in the largest taxpayer bailout in U.S. history. He supported Gramm-Leach-Bliley, which allowed banks like Citigroup to become “too big to fail.” He worked to deregulate electronic energy trading, which led to the downfall of Enron and the spike in energy prices. At this moment in our history, we need an independent leader who will help create a new culture in the financial marketplace and move us away from the greed, recklessness and illegal behavior which has caused so much harm to our economy.
There are too many former Goldman Sachs employees in this new administration. Why Obama is putting the fox in charge of the hen house is beyond me, unless he thinks this is just swell. In that case, then I am very very worried. No doubt things will eventually get better and the middle class will find some footing, but what I am worried about is that Geithner's subsidy to the hedge funds to encourage them to buy toxic assets with, essentially, a nonrecourse loan (i.e., they can walk away and only lose their tiny investment if the asset craters, leaving the loss with us) will result in the hedge funds keeping assets that can recover while leaving us with a big pile of shit. Long and short, we may see some improvement, but the wealthy are going to get a whole lot wealthier. And the gulf between the rich and the rest of us will grow bigger. How the fuck is that a good thing?
Thanks to Max for the link.