Saturday, April 24, 2010
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To help strengthen his push for greater regulation of Wall Street, Barack Obama is demonizing Goldman Sachs as being corrupt and not looking out for "the little guy."
Then who has Goldman Sachs been looking out for? Oddly enough, it's Barack Obama.
In 2005, Republicans wanted additional regulatory power over lending institutions - including the soon-to-fail Fannie Mae and Freddie Mac. But Democrats, including Senator Obama of Illinois, unanimously opposed it.
Which is why, in 2008, Goldman Sachs and its employees said "thank you" by giving candidate Obama over $950,000 in campaign funds. In fact, it was the largest single source campaign contribution since the beginning of campaign finance reform.
(As an interesting aside, in taking the money Obama broke a solemn campaign promise and an agreement with John McCain that he would run only on public funds to avoid corruption and influence peddling. In fairness, John McCain was pretty much the only person who actually believed him.)
Since January of 2009, Goldman Sachs has passed out another $900,000 in campaign funds...69% of which went to Democrats. And surely they expect to get a good return on their investment.
The financial regulation proposed by the Obama administration will be bad for Wall Street in general, but not particularly hard on those devilish companies that had the foresight to, in the words of one financial services lobbyist, give the Democrats "an assload of money."