Financial Oligarchy Prevails As 27 Senate Dems Join GOP To Defend ‘Too Big to Fail’ Banks
By John Nichols
May 7, 2010
Published by The Nation.
Whatever the final form of federal financial services reform legislation, one thing is now certain: The biggest of the big banks will still be calling the shots.
That was confirmed Thursday evening, when the Senate by a 61-33 vote rejected a move to eliminate the danger posed to both the federal treasury and the U.S. economy by “too-big-to-fail” banks.
Democratic Senators Sherrod Brown of Ohio and Ted Kaufman of Delaware had proposed an amendment to limit the size of the nation’s largest banks as a means of reining in the financial sector.
They lost. And so too did the prospect that the federal government might establish meaningful control of the banking sector.
What does the defeat mean? The “financial oligarchy,” as economist Simon Johnson described the big banks, will remain in place. And, to further quote Johnson, the federal government will remain “helpless, or unwilling, to act against them.”