There's a pattern here. Whenever the push for taxing Wall Street speculation starts to build some serious steam, the Obama administration dusts off their proposal for a big bank fee. This fee idea was is a good one. The problem: Obama officials have presented the big bank fee as an alternative to a financial transaction tax.
On May 6, 2010, the Dow Jones Industrial Average suffered its fastest nosedive ever. What happened? What's clear is that high-frequency trader accelerated the free fall by withdrawing from the market en masse. Four years after they caused the "Flash Crash," those speed demons still rule our financial markets.