The future of U.S. financial reform seems destined to track closely the path of that other major effort winding its way through Congress, healthcare. As a result, what came out of the House of Representatives with a narrow majority on Friday may be far more ambitious than what the Senate could possibly pass.
I don’t see this happening in the US. I mean, the effort to raise taxes on private equity carried interest, while passing the House, is going nowhere in the Senate. And that is far less controversial and a less stupid idea. And remember how the 90 percent tax on AIG bonuses fell flat back in March. The one caveat, as Dan Clifton notes in an earlier post, here is that 2010 is an election year and the combo of big bonuses and high unemployment could cause endangered Ds to play the populist card and try something
Don’t interpret passage of the watered-down Kanjorski amendment as the peak of the “break up the banks” movement. It may be about to get some new allies on the right, folks tired of Big Government, Big Money and crony capitalism.