Shock and Awe: From Massachusetts to the Obama “Volcker Rule” (Part 1 of 10)

On Thursday January 21^st, we met with members of the Senate Committee on Banking, Housing and Urban Affairs (referred to herein as the “Senate Banking Committee.”)  The purpose was to gather information on the status of financial reform legislation and to provide expertise and analysis where asked. Given my professional experience (formerly an Associate General Counsel at Fidelity Investments) and my current research agenda, SAFER co-founders Gerald Epstein (U-Mass) and Jane D’Arista (PERI) invited me to join them.

Perfect Timing
The visit was planned the prior week and was not a result of: (a) Scott Brown’s stunning victory in the Tuesday Massachusetts Senate election, (b) President Obama’s announcement on Thursday of a plan to get tough on the banks, the “Volcker Rule” ; (c) the Supreme Court’s 5-4 decision Thursday in Citizens United, to strike down the limits on corporate political spending; or (d) Friday’s House Financial Services Committee Hearings on “Compensation in the Financial Industry,” where witnesses included two corporate governance gurus and one Nobel Laureate  (Nell Minow, Lucian Bebchuk and Joseph Stiglitz.)  However, it was an astonishingly intense two days to be in Washington as a result of all four events.

Senate Meetings Arranged by Americans for Financial Reform
The meetings were arranged by the leadership at Washington-based Americans for Financial Reform (AFR), a coalition of over 200 organizations, including AARP, NAACP, Center for Responsible Lending, AFL-CIO and many others. Dana Chasin of AFR joined us in our meetings. Rene Rappaport of the Independent Community Bankers Association (ICBA), representing 5,000 community banks attended two of our meetings. Ellen Taverna of NACAA attended one.

SAFER
SAFER stands for Economists’ Committee for Stable, Accountable, Fair and Efficient Financial Reform. SAFER was founded in September of 2009 and “is a focal point, clearinghouse and coordinating mechanism for progressive economists and analysts to gather and present their views on financial re-regulation and reform.” SAFER participants and contributors are identified here . You might recognize SAFER participant Rob Johnson as the co-author with Arianna Huffington of the “Move Your Money” project. In addition to publishing a variety of policy notes and policy briefs, SAFER participants’ views have appeared widely in venues including the New York Times, the Huffington Post, the Nation and the Real News Network. SAFER members have also testified before Congress.

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[Varria Studios]

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