The move by President Obama to follow the ideas of Paul Volcker seems to push directly into the face of heretofore financial advisor Larry Summers.
Summers was not in favor of ANY of the things Volcker has brought into view. He did not want to regulate the banks. He did not want all things happening in the open. And he certainly didn’t want to put any size restrictions on banks that become “Too big to fail.”
So what will be Summers’ position now? Certainly he can’t be trusted with getting anywhere near the economy. And Bernanke is getting hit by Bernie Sanders who is standing in the way of his reappointment to the Fed. To quote Sanders:
“There is a growing understanding that our economy is in severe distress, a greater appreciation that people are disgusted with the never-ending greed on Wall Street, and a better recognition that we need a new direction at the Fed.”
And underneath all of this is Geithner, who is trying to get Congress to do more TARP money… which they are now not likely to do.
This seems to call for a real turnover which would be in Obama’s best interest… and might lead him back to his campaign promises.