Tag: bankers

Obama Too Cozy With Banks, Say Paul Krugman…And John McCain

In his New York Times column today, Nobel Prize-winning economist Paul Krugman criticized Obama for going easy on the bankers. Krugman’s complaints are part of a broader frustration among progressives that Obama is too close to Wall Street and big banks. But this particular column had an unusual booster: Obama’s 2008 presidential opponent John McCain.

Earlier today, McCain tweeted from his official twitter account, @SenJohnMcCain, that “It may surprise you to know that I completely agree with Paul Krugman’s column in today’s @nytimes.

In fact, it shouldn’t be that surprising. Toward the end of the 2008 campaign, McCain attacked the close relationship between the government and Wall Street banks, calling for an independent commission to investigate the “casino on Wall Street of greedy, corporate excess” and the “old-boy network and Washington corruption” that prevented the government from effectively regulating the banks. Obama opted not to appoint an independent commission, preferring to focus on a way to quickly stimulate the economy.

Krugman’s most recent column attacked Obama’s argument that it was necessary to go easy on the banks in order to save the economy. Among other things, Obama has pushed states’ attorneys general not to investigate evidence of foreclosure fraud, but instead to settle with big banks for a couple billion dollars and a promise they’ll stop. Obama seems to be concerned that a thorough investigation of major mortgage lenders’ unethical foreclosure policies—Bank of America and others allegedly evict people from homes without bothering to check whether they’ve actually defaulted on their mortgages!—will upset the banks and make them less likely to give loans to would-be homeowners. But, Krugman points out, ignoring the problem will just lead to more foreclosures, which will depress housing prices—in addition to ruining countless lives.

It may not be a surprise that McCain—who loves to (occasionally) beat the drum of economic populism—agrees with Krugman that the government isn’t hard enough on the banks. But it should be a wake-up call for Obama, who now faces populist anger from both liberals and conservatives. Most of Obama’s economic policies may be much smarter and more appealing than Republican ridiculousness like extending the Bush tax cuts for the wealthy and privatizing Medicare, but Americans on both the Left and Right may not be happy that he’s refused to take a hard line against the banks that started the financial crisis in the first place.

Party of Banks and Wall Street Struggling to Raise Money

Despite intense anti-Obama sentiment and the conservative wave of last fall’s midterms, Republican presidential contenders are struggling in the fundraising battle, even as they do the bidding of bankers and lobbyists for Wall Street.

After taking the House last November in a wave of conservative opposition to President Obama, Republicans now appear to be struggling to match the financial muscle of Democrats heading into the contentious 2012 elections.

The six GOP presidential candidates who have announced results raised a combined $35 million through June 30, including about $18 million by presumed front-runner Mitt Romney. In 2007, Republican candidates had raised more than $118 million by the same stage of the race, according to a new analysis from the Center for Responsive Politics.

The sluggish pace poses a serious complication in Republican efforts to unseat Obama, and suggests GOP donors simply might be less enthusiastic than their Democratic rivals. The Obama campaign, which has not disclosed numbers yet, is expected to report raising at least $60 million — and perhaps as much as $80 million — in conjunction with the national party.

Republican strategists and donors attribute the depressed fundraising to a combination of factors, including a weak economy . But many GOP advisers also acknowledge that the numbers show a remarkable lack of excitement for the current Republican field, which includes two candidates — Romney and former Minnesota governor Tim Pawlenty — who have effectively been running for president since Obama was elected. Pawlenty in particular has struggled to raise money, finishing behind Rep. Ron Paul (R-Tex.) with $4.3 million.

Many wealthy GOP donors, meanwhile, have remained on the sidelines waiting to see whether another candidate such as Texas Gov. Rick Perry might enter the fray.

“Everyone is looking for Superman,” said Brian Ballard, a Florida donor who was a national finance co-chairman for McCain’s 2008 run but has not yet committed to any of the 2012 candidates. “I don’t think there is any other candidate who is going to come in and change the ultimate result, although Governor Perry could raise money.”

Too bad the earnest, unabashed protection of corporate profits and the rich isn’t earning the GOP presidential candidates much love in return.

Of course, outside advocacy groups like Karl Rove-backed Crossroads GPS, which can raise unlimited sums from undisclosed donors and corporations, help to balance things in favor of the GOP, even if Dem outside groups, Labor among them, are ramping up as well.