Hooray for Sen. Bernie Sanders (I-VT)

The Obama Administration has been an even greater disappointment on the financial crisis than I long feared. President Obama recently nominated another consummate insider (who is also, not coincidentally, another former Goldman Sachs employee) to head the Commodity Futures Trading Commission (CFTC). The marvelous Senator Bernie Sanders has just blocked Gary Gensler’s appointment with a “hold.” Sen. Sanders' statement notes that Gensler’s fingerprints are on many major deregulatory actions that have pushed the world economy into a deep recession (depression?) and future Americans' taxes sky high (to pay for multi-trillion-dollar bank bailouts):

While Mr. Gensler is clearly an intelligent and knowledgeable person, I cannot support his nomination. Mr. Gensler worked with Sen. Phil Gramm and Alan Greenspan to exempt credit default swaps from regulation, which led to the collapse of A.I.G. and has resulted in the largest taxpayer bailout in U.S. history. He supported Gramm-Leach-Bliley, which allowed banks like Citigroup to become “too big to fail.” He worked to deregulate electronic energy trading, which led to the downfall of Enron and the spike in energy prices. At this moment in our history, we need an independent leader who will help create a new culture in the financial marketplace and move us away from the greed, recklessness and illegal behavior which has caused so much harm to our economy.

Posted by James on Wednesday, March 25, 2009