Will Goldman approve Dodd bill? 

Liberal financial blogger Mike Konczal thinks so.

At his blog, Rortybomb, Konczal reads Chris Dodd's bill for "financial reform," from an interesting perspective:

I want to approach it from a different angle: What would an investment bank hate about this bill, and lobby hard to change? I actually read this bill as if I was a Goldman Sachs lobbyist, looking for all the sections that I hated and made a list of what items I needed to lobby hard on to kill or modify.

My final verdict, by the time I got to the end? If I was a Goldman lobbyist, I’d probably shrug and go "eh, pass it."

Konczal then breaks down various elements of the bill. The post is worth a read, and it confirms what I've suspected: Obama will continue to talk tough about battling the Masters of the Universe, in the end he'll declare victory over the special interests, and the fattest "fat cats" won't really be effected.

Like Washington Post liberal blogger Ezra Klein, I think this bill will be fixed to be even more friendly to the big banks (recall who those Wall Street lobbyists are). In the end, the main effect of Obama's regulation of finance will be irrationally restored confidence in Wall Street and barriers to entry that solidify the cushy perches of bailout kings Goldman Sachs and JP Morgan.

[And of course, as I wrote when Obama claimed he was ready to fight Wall Street: "For his presidential campaign in which Wall Street regulation was a mantra, Obama's top source of funds was investment bank giant Goldman Sachs, whose employees, partners, and executives gave him $995,000 -- that's the most any politician has raised from any one company in a single election since the age of "soft money" ended.]

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Timothy P. Carney

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