Eliot Spitzer: Obama 'Has Been On Wall Street's Side Since Day One'

When it comes to reforming Wall Street, President Obama is all talk, according to Eliot Spitzer.

The former New York governor took to Reuters TV's Fast Forward with Chrystia Freeland to slam the president for what he says is a talk-tough, act-weak approach to the financial industry, which less than five years ago brought the global economy to the brink of disaster.

"I'm not persuaded that this President has really been a voice for reform when it comes to Wall Street," he said. "Wall Street has pretended that it has taken its hits, but it really hasn't."

Spitzer summarized Obama's efforts as the "occasional speech" criticizing Wall Street practices, largely followed by little to no substantial legislative action.

"When it has come to actually putting in place the reform-based structure that would actually have changed the way the banking system works, he has really been on Wall Street's side since day one," Spitzer said.

Spitzer criticized the Obama administration for what he perceives as opposition to the Volcker Rule, a key piece of financial reform that aimed to curb banks' high-risk bets with their own money. Such trading has been criticized for pitting banks against their own clients. The president first introduced the rule more than two years ago, calling it a "simple and common-sense reform" at the time.

Spitzer also claims the White House did not fight to give judges the ability to reform mortgages in the wake of the housing collapse.

"The White House and Treasury intervened to defeat that in the Senate, something that could have fundamentally altered the course of our mortgage crisis that still continues to this day," he said.

Comments

[Timmy Kaye]

02:31 AM on 01/23/2013

isnt this the guy who was banging hookers in the butt?

[mtomasic]

10:54 PM on 07/09/2012

Sadly, President Obama has failed to directly challenge Wall Street/Big Banking with actual prosecutions of those responsible for our world-wide recession.

Big money controls both parties and their Presidential candidates. While I believe that the Democratic Party attempts to help the middle class, in general, I recognize that the Party and its leadership continues to reach out to their special interest donors for campaign funds.

It's almost like those incessant late-night telephone requests for donations to the State Law Enforcement Sheriff, Constable, Trooper, Police Officer "non-profit". You know that some funds will actually reach the people you hope to help, but you also know that the "handlers" really rake in the dough - 30%-70%, if you're luckey.

Unfortunately, the alternative, the Republican Party, the split is more like 5%-95% with the maximum going to the 1%ers.

The lesser of two evils is sad, but likely to be the case until campaign reform stops the bought and paid for system of government.

Let's start by throwing the 1%ers out first.

[rwthewayIseeit]

08:00 PM on 04/19/2012

Yep.. Obama mine as well been an accomplice. To not fully investigate the biggest heist and fraud in American history makes you a morally deprived person.

[SayNo toCorporateAmerica]

06:58 PM on 04/19/2012

Obama's Dept of Justice has had Non-Prosecution-Agreements with Financial Frauds since Day 1. Eliot is right.

Allowing Frauds to do their own investigation sure seems like an invitation to commit crime to me. Does Obama really think a fraud suspect will actually investigate and go so far as to report their own crime? Frauds are not exactly trustworthy type. MF Global was outright theft but they didn't report that crime.

Will 'justice' allow a 1% murderer to give 'em a call if they kill again? The prisons would be empty if justice was on the honor system for the 99% like it is for the 1%. They only punish the elite if the crime is against the elite.

Fox-guarding-hen-trend is taking off. It's not just DOJ allowing The Corporation to do their job... USDA is allowing biotech to do the USDA's job by allowing corps like Monsanto to do their own Environmental Impact Reports. Agent Orange corn approved... I wish I was kidding!

So you see folks, Government isn't just owned, it is literally privatized, maybe not 100% privatized like the war in Iraq but headed that way. GOV Inc needs to be unincorporated!

There is a genuine Political Revolution happening now and People better stop ignoring it! 2012 may be the last chance for peaceful change!
DC is eliminating Due Process for the 99% and investigations on the 1%.

http://saynotocorporateamerica.blogspot.com/
http://www.youtube.com/watch?v=9TLuCNz9YDM&feature=share

[rwthewayIseeit]

08:01 PM on 04/19/2012

But Obama and Holder get a pass for not investigating the biggest heist in American history? Nice.

[JohnnyAce Okeke]

02:16 PM on 04/17/2012

You still can't fill Olbermann's shoes. {{-_-}}

[FrankLombardi]

10:51 PM on 04/16/2012

Eliot ordered a prostitute, and Barack Obama is one. Who should I be angry at? If I could get Eliot back as AG of NY and the Sheriff of Wall St., I would personally pay out of pocket for his high-class escort. Let's remember the only reason anyone knew what Spitzer had done was because the financial firms he was investigating for fraud hired private investigators to dig up dirt on him. These are the same financial firms that use high-class escorts to entertain their clients. Let's put all of this in perspective here.

[Robert A Hayes]

04:04 PM on 04/16/2012

its the spirit of the office he's referring to, not the individual... wasn't that his famous quote said on his scandalous way out of political life... he seems bitter not to be able to play on that platform anymore. "from the beginning of his career he was in hookers beds across state lines"... see how it sounds the same. the agressive little sports reporter who was always the last picked. and with an account hiding corporate raider on his side he wants to paint the President as a bankers buddy. passionately weak. but i get it, it's a fight for survival... truth perception allowed.

[Jeffin90019]

02:52 PM on 04/16/2012

On "Day One" of the Obama presidency, Mr. Obama was dealing with the wreckage of the frat boy presidency. Banks teetered on the edge of collapse, and the economy was swirling around the toilet filled by the GOP. The important thing was to stabilize the banks and try to keep other big business from failing and throwing thousands more out of work. Maybe he should have been out with prostitutes instead. I don't always agree with Mr. Obama, but he's making an effort. The GOP, however, is all about making sure nothing happens. Voters see it.

[Pamela Lewis]

05:13 PM on 04/16/2012

That was fine for Day One, but after that, it was definitely not okay to give Wall Street a pass. If he had done what we elected him to do, we wouldn't have had the Occupy Wall St movement.

[Jeffin90019]

05:40 PM on 04/16/2012

Fair enough. You'll get no argument from me on the many disappointments of President Obama. But when I compare him to likes of Mitt Romney and today's hate-fueled GOP, I'm sticking with the president.

[dui]

05:25 PM on 04/16/2012

The collapse of the mortgage/banking industry was a wholly-owned fiasco of progressives in Congress. Numerous attempts to regulate the industry were made by GWB beginning in April, 2001.

[Jeffin90019]

05:43 PM on 04/16/2012

So when the frat boy president had control of the white house and congress, he wasn't able to reign in the progressive minority? Got it. None of the problems belonged to Bush. Sheesh.

[Flight]

01:48 PM on 04/16/2012

BO made the choice to surround himself with the Wall Street that pretty much crippled this country...Timmy Geithner, Lawrence Summers, Lloyd Blankfein, etc. Instead of an administration of 'hope and change' we all hoped for, he has given us nothing but continuity.

[dui]

05:26 PM on 04/16/2012

he has prolonged the recession as FDR prolonged the Depression

[dizmo4]

01:27 PM on 04/16/2012

Eliot needs to understand that Obama doesn't operate in a vacuum.    I think most Democrats are disappointed in his approach to Wall St.  and I think he could have been more aggressive with the mortgage fraud investigations and not settled for a mere $26 billion settlement.

But Eliot needs to understand that the reason the Volker Rule was weakened was because Sen. Brown was going to torpedo the entire Dodd-Franks Act.    Do you scrap the whole thing to stand your ground on principle or accept a weaker overall bill?

[Sal Solomon]

02:13 PM on 04/16/2012

As one respondent on this thread rightly put it, it is so convenient for obamabots to think that Bush was an imperial president who flouted the law. But Obama is powerless victim of the Congress - more of a figurehead actually. Bush did all bad things for the middle class without impunity. But, Obama is unable to anything good for the middle because the Congress won't let him do that. All the same, despite that same obstructive Congress, Obama managed to bail out the Wall Street banks and extended the Bush tax cuts for the superwealthy. What about for Obama to show some spine and leadership and using the weight of the WH to get something done for the middle-class????????

[Lost Artisan]

11:48 PM on 04/16/2012

See....this is part of that timewasting, FULL TIME lie-busting staff problem I talked about up there.

Obama DID NOT bail out the banks.

BUSH signed $700Bill for the banks on Oct. 3rd, 2008.

[rwthewayIseeit]

08:08 PM on 04/19/2012

He has wall street on their knees and gave them a pass because they were huge contributors (and he does not have the moral fiber to do what is right). He and Holder could have launched the biggest investigation this country has ever seen into the biggest heist ever committed. Instead he made sure they could keep borrowing and gambling at low interest rates. This event is at the core of what is wrong with this country and he focused on cutting deals with big pharma for his health care push. How most can not see this is incredible, but when you have Huf po and the main stream media backing the guy how can the truth have a chance.

[sf1000000]

01:11 PM on 04/16/2012

To paraphrase Voltaire, but if this Present goverment is the BEST that Wall Street can buy, well then Wall Street should demand a refund...

[robeson]

12:49 PM on 04/16/2012

Obama has thrown away an opportunity to be on the side of justice with his poor record on prosecuting Wall Street crimes. He has allowed Romney to take the preposterous position of advocating deregulation after it along with fraud brought the world economy to its knees. In my affluent neighborhood, speculators are talking of gaming the real estate market once again, as if nothing took place just 4 years ago. Why is this all returning so quickly: huge rewards, little risk,
and no criminal deterrence.

[Pamela Lewis]

05:17 PM on 04/16/2012

Obama couldn't be a bigger disappointment if he tried.

[pedernales]

11:45 AM on 04/16/2012

Worst Democratic President in modern history and, hopefully, will lead to the dismantling of the leadership and vile members of both parties that have ruined our government and nation, all accomplished by a 10 point list of demands and a voice vote of tens of millions of Americans hitting the streets.

[kamact]

11:38 AM on 04/16/2012

I share this perception of Obama...He rewarded the TBTF banksters, inspite of occasional tough talk...Unfortunately, the GOPers will be even more rewarding to these financial terrorists...Enlightened Patroitic Americans will have to administer justice.

[southred]

10:14 AM on 04/16/2012

I am so taken aback when I see or hear this political "has been".I can still see this wife looking like she had not slept in days standing beside him as he apologized to the press for his adultress affairs, never even looking toward her or touching her on the shoulder..She looked like an abused wife, terrified of her abuser.Why would anyone take a word from him that has no honor or integrity..

[JamesCurran75]

10:18 AM on 04/16/2012

Same for Bill Clinton .

[pj-smith]

10:28 AM on 04/16/2012

it's too bad, bc O-pologists need to hear what he is saying.