The Blog Of The Securities Industry Professional Association

Sweeping Change in Washington

Will this translate into meaningful change or more of the same?

As I watched the elections late into the night on Tuesday I was struck at how just 2 years ago everyone was tweeting and posting on Facebook how proud they were of their county and ‘hope and change’ became the phrase of the day. Commentators were openly talking about getting ‘tingles’ listening to Obama and almost everyone thought there was finally someone from outside the beltway that was going to bring the parties and people together. Its pretty obvious from Tuesday’s results that those tingles didn’t last long with most of America and the only hope and change delivered was a spending spree without regard that continues to decline the U.S. into the debt abyss. The reality is that there was absolutely no significant change; unless of course you feel far reaching supersized government is change. Almost all of Obama’s staff and appointees were people who have been long seduced by big government and big spending. The Goldman Sachs crowd that ruled before was entrenched once again in his administration and things like executive pay and TARP funded bonuses got a verbal lashing but no action. The Republicans swooped into office and now everyone is expecting huge change in Washington yet your first evidence of more of the same was the speech by minority leader John Boehner on election night. Lets be realistic, this race was fueled by the phenomenal success of the Tea Party and they are the ones who energized the campaign, yet once victory was secured in comes a 21 year congressmen with a nice suit, overly tanned and full or pats on his back when in fact he offered little or no support to tea party candidates who were running under the Republican ticket. It reminds me of the other day when I walked into my favorite watering hole and half a dozen people were wearing San Francisco Giants baseball caps…where have all these fans been for the last 50 years? They win a series and suddenly everybody was always a giants fan? As I look at Boehner, I see a guy who is most likely thinking of running for President and who will concede and give in on deals that might help him win an important state like Ohio or Pennsylvania even though it does not help the rest of the country. I hope I’m wrong but I see Nancy Pelosi in a suit now not a game changer who wants to bring meaningful reform to D.C. This was not so much a vote for Republicans because they have new ideas, it was a vote against Obama and Pelosi and Reid. Grass roots movements started this surge and are demanding two things: stop spending money we don’t have and leave our freedoms alone. How will all of these things change Wall Street? I say little if any change will come except of course for the small firms. The incoming Chair of the House Finance Committee has already indicated that he would like FINRA to regulate investment advisors nationwide. Really Mr. Bachus is this the best you can come up with? Based on their fine performance over the last 20 years you think more FINRA regulation is a good idea? Obama pegged the former head of FINRA to be the country’s top cop on Wall Street and we shook our head and asked why? Now the republicans are about to go the same direction. So much for Change. FINRA has failed to regulate the largest 200 firms on the Street but now we think it’s a good idea to turn ten thousand investment advisors over to them as well? The group that failed to detect mutual fund abuses, illegal short selling, market timing, Madoff, insider trading, illegal research, Sanford, Provident, Lehman,Bear…. the list goes on and on. This big wave of change seems an awful lot like a broker record playing the same line over and over again.

Post Metadata

November 4th, 2010



Comments are closed.