Why Wall Street Needs A New Social Contract

Because currently it’s heads I win, tails you lose:

Nonetheless, if public anger continues to grow, politicians in Washington, DC, are more likely to impose burdensome regulation on financial firms. If they are wise, Goldman and its peers will do something soon to try to calm the public mood.

As part of establishing the new “social compact” that Larry Summers, Barack Obama’s chief economic adviser, says is urgently needed, Wall Street firms should also stop lobbying against the proposed Consumer Protection Agency, and instead support efforts to ensure it works. As Mr Summers mildly put it, given the help Wall Street firms have received from the taxpayer, some of their behaviour lately has been “a bit rich”.

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