BYRON DORGAN: LESSONS OF THE PAST

HUFF POST--Washington has an odd habit of listening to the people who consistently get such things wrong, and ignoring the ones who get them right.

So today, on this solemn anniversary, how about listening to this guy? What does he think we should do now?

"Three things," the senator told me in an interview. "One is to separate investment banks and FDIC-insured banks. Second, prohibit FDIC-insured banks from dealing in risky financial instruments on their own proprietary accounts... And third, abolish 'too big to fail.' If you're too big to fail, you're too big. Too big to fail is what I call no-fault capitalism."

All in all, it's a much more forceful agenda than his party leaders -- including his president -- are advocating.

Why isn't the administration at his side? "You'd have to address that question to the administration," Dorgan said. He did, however, express disappointment. "I would like to see them more aggressive on this issue."

http://www.huffingtonpost.com/2009/11/12/byron-dorgans-financial-p_n_355659.html

BLOOMBERG--Seven Wall Street lobbyists trooped to Capitol Hill on Nov. 9, hoping to convince Representative Paul Kanjorski’s staff that his plan to dismantle large financial firms was a bad idea.

They walked out with a sobering conclusion, according to the accounts of two attendees who requested anonymity because the meeting was private. Not only was Kanjorski serious, he planned to offer the legislation as early as next week -- and it just might pass.

Today marks a decade to the day that President Bill Clinton signed the repeal of the Depression-era Glass-Steagall Act that split investment-banking from lending and deposit-taking. The repeal allowed the creation of Citigroup Inc., the financial colossus now propped up by $45 billion in taxpayer rescue funds. Financial firms are scrambling to prevent Congress from re- imposing the act.

“We’re playing with live ammo,” said Sam Geduldig, a lobbyist at Clark Lytle & Geduldig who represents financial- services firms and wasn’t at the Nov. 9 meeting. “The banking community is rightfully concerned.”

WB7--Line em up against the wall!