The traders on Wall Street rarely miss an opportunity, but they did last year, and now the industry is about to pay a price.
Here's how: Back in March, newly minted President Barack Obama, in only his second live prime-time address from the White House, warned Wall Street not to block new regulations.
"Bankers and executives on Wall Street need to realize that enriching themselves on the taxpayer's dime is inexcusable, that the days of outsize rewards and reckless speculation that puts us all at risk have to be over," Obama said.
During the next five months he repeated the message.
Finally, fearing the memo wasn't getting through, he went to Wall Street on Sept. 14 and delivered this admonition:
"There are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them. They do so not just at their own peril, but at our nation's."
For now, it looks as if Wall Street has bet wrong -- and it could cost them billions.
Tuesday, January 19, 2010
Wall Street "bet against Obama and now they're paying the price"
David Weidner (MarketWatch):