Cowboys on Wall Street

I've just been reading about the legislation to overhaul the US financial system that was passed by the Senate yesterday. Apparently, if passed it will represent the most sweeping reform to Wall Street since the aftermath of the Great Depression. Looking over its contents, it seems to propose some patently sensible things: for example, it would drastically enhance the regulation of the $615 trillion derivatives industry, bringing them onto regulated exchanges and improving transarency of the industry.

Predictably, the Wall St banks have been lobbying like crazy to try to prevent all of this and maintain the status quo as much as possible, but so far they don't seem to have succeeded. 

The situation reminds me of a classic moment from the 1993 film Tombstone. Curly Bill, the charismatic but evil leader of the Cowboys gang, has just been taken into custody by the Earp brothers after shooting the town sheriff dead (in his defence, he is sky-high after a trip to the opium den and probably doesn't realize what he's done). 

Now, to see where I'm going with this, try to picture Curly Bill as Dick Fuld -- or perhaps Lloyd Blankfein; take your pick -- and the shooting as the GFC. The role of Wyatt Earp is to be played by Barack Obama.

Initially, the Earps face off against a would-be lynch mob comprised of non-Cowboy townfolk who want his blood (think outraged Main Street voters). But slowly, one or two dissident voices pipe up: "Turn 'im loose!" barks Cowboy henchman Ike. Before you know it, an even more tense stand-off ensues, not against the lynch mob, but against a "lobby group" of Cowboys demanding their leader's release.

In the end Wyatt & Co hold fast and justice is (eventually) served. I just hope that, back in the real world, Obama can prevail against the Cowboys on Wall Street.