A president speaks on financial reform

"We had to struggle with the old enemies of peace -- business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering, . . . They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob. Never before in all our history have these forces been so united . . . "

That was President Franklin Delano Roosevelt in 1936. He was in the midst of a re-election campaign, and opponents were bitterly opposed to regulation and hated FDR. Legislation was passed that regulated banks and financial institutions -- and kept things in check until the repeal of those measures, which led directly to the collapse of the system last year.

Now President Barack Obama is trying to put some of those regulations back in place. Today, in speaking in New York, with heads of banking/finance institutions seated before him, he appealed for common sense and cooperation:

"Ultimately, there is no dividing line between Main Street and Wall Street. We rise or we fall together as one nation. So I urge you to join me - to join those who are seeking to pass these commonsense reforms. And I urge you to do so not only because it is in the interests of your industry, but because it is in the interests of our country."

Republicans have apparently shifted course, realizing that siding with Wall Street right now is not the best re-election strategy. Sen. Grassley (R-IA) joined Democrats on the Finance Committee in approving the Dodd legislation. Of course, they're trying to claim that the were able to gain concessions from the Democrats -- but could cite none, and the Dems say they made no concessions. I think the concession was the decision that they would lose and that being a loyal friend to Wall Street would hurt them in November. It's called jumping on the band wagon, not gaining concessions.

Ralph