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Wall Street Threatens a Sit-Down StrikeWall Street Threatens a Sit-Down Strike | The Washington Independent

Jul 31, 2020
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While Wall Street likes the Obama administration’s financial rescue planand liberal economists Brad DeLong(pro) and Paul Krugman(anti) go head to head over its merits, The Wall Street Journal’s lead storytoday tells how the populist impulses of a Democratic White House have been checked in recent days by the president — and the not-so-subtle threat of a capital strike.
From the story headlined “Obama Dials Down Wall Street Criticism:”
Treasury Secretary Timothy Geithner and his colleagues worked the phones to try to line up support on Wall Street for the plan announced Monday. They told executives they don’t favor using the tax code to retroactively penalize specific individuals who had received bonuses, according to people familiar with the calls. They asked officials to sign on “in pencil, not ink,” and to “validate” or “express support” for the plan, these people say.
Do you think the bankers thanked President Obama officials for their tacit support amid the AIG firestorm? You must be new in town.
Some bankers say they turned the conversations into complaints about the antibonus crusade consuming Capitol Hill. Some have begun “slow-walking” the information previously sought by Treasury for stress-testing financial institutions, three bankers say, and considered seeking capital from hedge funds and private-equity funds so they could return federal bailout money, thereby escaping federal restrictions.
This is the capitalist version of a labor union’s sit-down strike: show up for work but don’t do what the boss says. The message is: protect our bonuses — because without us, you can’t make policy.
Like it or not, Obama gets the message and agrees.
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Camilo Wood

Camilo Wood

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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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