Tuesday, April 13, 2010

Senator Warns of ‘Populist Fervor’ Against Wall St.

Senator Warns of ‘Populist Fervor’ Against Wall St.; The New York Times

Senator Judd Gregg, the ranking Republican on the Senate Banking Committee, asserted Monday that Senate Democrats were approaching the overhaul of the nation’s financial regulations with a harmful “populist fervor,” but he said he still hoped a compromise could be reached between both parties in the coming weeks.

“The problem we have is that there is this populist fervor, this Huey Long attitude out there that says all banks are bad and that the financial system is evil and as a result we must do things which will basically end up reducing our competitiveness as a nation,” Mr. Gregg said on CNBC. “We have got to try to avoid this call to the populist banner that is going on in this country.”

Mr. Gregg, of New Hampshire, is working with Senator Jack Reed, Democrat of Rhode Island, on drafting the derivatives portion of the financial overhaul bill. Talks stalled last month over issues concerning end user exemptions and mandatory clearing of derivatives through an exchange, Mr. Gregg acknowledged Monday, but he noted that the two sides were still talking.

Mr. Gregg said he was in favor of getting “as many derivatives as you can onto a clearing platform,” but stopped short of forcing all trades to clear through an exchange, saying that it could “actually undermine the stability of the markets.”

Read the rest here.

Comment: I'm not sure how out of touch Mr. Judd can be, but the largest banks and investment houses in this country took great risks with this scheme called "derivatives" behind closed doors with no transparency. Then were bailed out with our tax dollars when the scheme failed. Mr. Judd this isn't populism, this anger.

The Senate allowed for the banking and financial sector, through the Treasury Department, to act in the most reckless and un-capitalistic manner possible and Judd says the people are acting like populists; no Mr Judd it's you that has a problem. You are a blind fool who failed to uphold your oath to defend and protect the people that elected you. Wake up Mr. Judd.

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