Showdown Against the Greedy Bankers in Chicago

By Rob Johnson, NewDeal 2.0. Posted October 26, 2009.

Editor's Note: As David Moberg of In These Times writes, "Just as the showdown over financial reform is heating up in Congress and the media, a coalition of dozens of community organizations, unions, religious groups and other progressive organizations are mobilizing their own “Showdown in Chicago” during the American Bankers Association convention. ... The protest, with thousands expected, follows a week of progress in taming an out-of-control financial system." Sunday saw the kickoff of the protests, described by Rob Johnson below.

Opening night at the Showdown in Chicago. Senator Durbin from Illinois gave a rousing speech about unfairness, bailouts, credit care usury and bonus audacity. He emphasized the need to be respectful but unyielding in our demands for balanced reform. He spoke of how each marcher is there and represents the pain and hopes of individuals who were abused by foreclosure, subprime treachery and more. The only surprising element was the muted applause in Chicago for the president of the United States. Only on the third time that Durbin referenced the name Obama to arouse the crowd did he get the applause he was looking for.

Sheila Bair, FDIC chairperson, will address the crowd tomorrow. That is great to see. After watching the great episode on PBS Frontline entitled "The Warning" about OTC derivatives, I am beginning to wonder if the essential reform we should be seeking is to have only women regulate finance. Imagine if Janet Yellin had run the Fed, Elizabeth Warren ran the CFPA, Sheila Bair stayed in place at the FDIC and Brookley Born had stayed to run the CFTC. (Though Gary Gensler is doing great work at the CFTC now) They are all highly competent and god knows we would be better off. Every one of these people is first rate competent and does not seem to be missing the capacity of judgment that so many of the men have lacked in the last 20 years.

The question most asked here is "how long can this go on? Bailouts for the ones who created the mess, bankers acting like they earned it, foreclosures and bankruptcies and unemployment rising, and the Congressional Committees pretending to reform the financial regulatory system while they load up on money from the financial lobbyists.

My answer is that no one knows how long. We know that it will change. We will not see a nation that lives on 30 percent credit card rates. We will not see Wall Street wages forever at a 40 percent premium to wages throughout the economy adjusted for skill and experience. We will not pretend that only financial repackagers work hard and are deserving.

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Rob Johnson is the Director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute and is a regular contributor to the Institute’s blog NewDeal2.0. He serves on the UN Commission of Experts on Finance and International Monetary Reform.

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