Congress and the SEC have put Goldman Sachs on the rack as the scapegoat for the financial crisis from which the U.S. is only beginning to recover. But it turns out that at least some of the posturing may be even more hypocritical than usual for Congress. Not only has Congress carefully shaped the rules so as to exempt themselves from the same restrictions they seek to enhance further against Wall Street, but it appears they have actually benefited and are blocking reform efforts.
While many have suddenly come down with partial amnesia, it is worth remembering that Speaker Pelosi promised in 2006 to run “the most ethical Congress in history”. Yet, under her leadership, we’re seeing show trials of Wall Street executives for practices that are seemingly less corrupt than those of some members of her own caucus. And as Congress rushes headlong towards populism-driven “reforms” of the financial system, it is worth inquiring how many more politically and personally “convenient” loopholes are being quietly inserted into yet another bill that no one may be allowed to read until after the voting is over.