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...least 80% of what they wanted, including the stand-alone consumer agency, an easy-to-understand innovation for Americans who think mortgages and credit cards should be as safe as toasters. Many of the differences were technical or turf-based: how to structure the resolution authority and regulate systemic risks, a loophole exempting "industrial loan companies" from various regulations, more loopholes shielding community banks and auto dealers (known for their pull with local Congressmen) from the new consumer agency's direct oversight. House Financial Services Committee chairman Barney Frank points out that the Republican alternative to the bill consisted...

Author: /time Magazine | Title: Can Bashing the Banks Help Obama? | 1/28/2010 | See Source »

...Street. He was also making cagey references to his lack of influence with Obama, for whom he was chairing an obscure economic-recovery board. Congressman Paul Kanjorski says that last March, when he pitched Volcker on a plan to let regulators break up big banks that threatened the financial system, the former Fed chair said, "I'm out of vogue right now in the White House ... but I agree." Volcker secured his walk-on-water reputation by taming runaway inflation in the late 1970s, jacking up interest rates and ignoring intense public pressure to reverse course. His grandpa...

Author: /time Magazine | Title: Can Bashing the Banks Help Obama? | 1/28/2010 | See Source »

...White House wants an issue rather than a bill. It wants both, especially if health care dies and leaves Democrats short on achievements to brag about in 2010. It's simply decided that the most plausible path to a bill is to warn the public that the financial system is still a ticking bomb, and to try to make opposition to strong reform tantamount to support for the terrorists in fancy suits. The problem is that on an issue this complex, with so many contentious provisions and alternative proposals floating around, naysayers are always going to be able to find...

Author: /time Magazine | Title: Can Bashing the Banks Help Obama? | 1/28/2010 | See Source »

...like health care reform, is truly complex. It's hard to explain controversies over pre-emption or end users or proprietary trading; as another Wall Street lobbyist puts it, "Americans don't care whether Morgan Stanley keeps its prop desk." Obama knows he has little chance to transform the system if regulatory reform gets bogged down over health-care-style intricacies. The good news for Obama is that nobody claims our financial oversight is the best in the world. He may have a chance for reform if he can boil it down to one simple question...

Author: /time Magazine | Title: Can Bashing the Banks Help Obama? | 1/28/2010 | See Source »

...Chinese economy historically outpaces India's by just about every measure. China's fast-acting government implements new policies with blinding speed, making India's fractured political system appear sluggish and chaotic. Beijing's shiny new airport and wide freeways are models of modern development, contrasting sharply with the sagging infrastructure of New Delhi and Mumbai. And as the global economy emerges from the Great Recession, India once again seems to be playing second fiddle. Pundits around the world laud China's leadership for its well-devised economic policies during the crisis, which were so effective in restarting economic growth...

Author: /time Magazine | Title: India vs. China: Whose Economy Is Better? | 1/28/2010 | See Source »

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