I think relatively few people understand that one of the principal substantive complaints the new Republican House majority has about Barack Obama is that he’s been unkind to the incumbent firms in the financial services sector.
But here’s Spencer Bachus, the likely new chair of the relevant committee, firing warning shots on behalf of Wall Street:
Spencer Bachus, a potential Republican chairman of the House financial services committee, has fired the first salvo in a battle with regulators – warning them against harming US banks by curbing their trading activity. [...]
Underlining the change in Congress, Mr Bachus, who as ranking Republican on the committee could replace Barney Frank as chairman of the panel, expressed concern that shareholders of Goldman Sachs and JPMorgan Chase will be hurt because the banks will be less profitable. [...]
“The derivatives provisions in Dodd-Frank alone… as they stand now they’re going to take a trillion dollars out of our economy. Think how many jobs that’s going to kill,” he said.
Rising stars in the conservative media firmament have painted an appealing picture over the past two years of a populist right outraged by allegedly undue entanglement between government and big business and eager to help out the little guy. But this is the reality. The article is via Tyler Cowen who remarks “It is difficult to fathom how that last pararaph can make any sense, other than as fabrication.”