This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obama's Misdirected Attack on Wall Street

NEW YORK ( TheStreet) -- President Obama's second trip to the Wall Street area over the past year evokes a little bit of classic American literature -- perhaps appropriately so.
President Obama

"I believe that on the first night I went to Gatsby's house I was one of the few guests who had actually been invited," says Nick, the narrator in The Great Gatsby, F. Scott Fitzgerald's tale of wealth and its pitfalls. "People were not invited -- they went there."

Obama is bringing the battle to New York thursday, heading to a college in Manhattan outside the financial district to garner public support for a rigorous overhaul of the way the financial sector is regulated. Unsurprisingly, Wall Street isn't exactly rolling out the red carpet.

The emerging laws -- still winding their way through Congress -- are sure to be tough on the financial sector. The bill will target large, money-center firms that are considered "too big to fail." It proposes a tidy resolution process in case they do, and forces them to pay a fee to enjoy the benefits of such a status.

Other measures are set to throw a regulatory net on the "shadow financial system" -- financial firms and products that now evade the burden of oversight. The bill is also poised to crack down on compensation practices that have become a political lightning rod.

Obama's team initially proposed the reform package shortly after his inauguration. On his last visit to the area, he came directly to Wall Street's door to tell the banks he meant business. Now, he's taking his message to voters, and with good reason.

The progress of Obama's proposal has been painfully slow , marred by partisan bickering and delayed by Republican intractability, even on measures the party had initially suggested. As the debate carries on, six of the country's largest banks -- JPMorgan Chase (JPM - Get Report), Bank of America (BAC - Get Report), Citigroup (C - Get Report), Wells Fargo (WFC - Get Report), Goldman Sachs (GS - Get Report) and Morgan Stanley (MS - Get Report) -- reported $18.9 billion worth of net income over the past two weeks. Most relied heavily on capital markets activity -- rather than struggling consumer businesses -- to boost the bottom line. They also took advantage of low funding costs, thanks to the Federal Reserve's 0%-0.25% interest rate policy.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.80 -1.50%
C $46.73 -1.16%
GS $164.50 -1.40%
JPM $63.60 -0.80%
MS $27.23 -1.09%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs