Biden Thread

[ReluctantSamurai]

Shades of Lehman Bros?

https://www.commondreams.org/news/20...d-risk-economy

"It isn't just banks that pose a risk to the economy. In 2008, two investment companies, Bear Stearns and Lehman Brothers, failed, triggering the 2008 crash," the senator said during the hearing. As a result, she explained, Congress created FSOC and "gave it the power to designate non-bank firms as 'too big to fail.'"

For perspective, BlackRock oversees a 9 TRILLION dollar portfolio, which is larger than the GDP of every country in the world except for the US and China.

Of course the reaction from BlackRock is predictable:

By contrast, a BlackRock spokesperson told CNBC that "we support financial regulatory reform that increases transparency, protects investors, and facilitates responsible growth," but that the firm shouldn't face the same rules as big banks

Also predictable is the potential for corporate corruption:

BlackRock alumni have accepted or are in line for top jobs in the Biden administration, including Wally Adeyemo, a former senior adviser at the asset manager who the president has picked to be deputy treasury secretary. During his confirmation process, Warren questioned Adeyemo—a longtime ally of hers—but refrained from asking whether FSOC should designate BlackRock. The Senate is expected to soon vote on Adeyemo's nomination.

Vice President Kamala Harris tapped Mike Pyle, BlackRock's former chief investment strategist, to be her top economic adviser and Brian Deese, who was the firm's global head of sustainable investing, leads [President Joe] Biden's National Economic Council.

Even before he took office, Biden faced pressure from progressives to refrain from appointing corporate executives, consultants, or lobbyists to his Cabinet and administration. In response to the president's selection of Deese, Sunrise Movement political director Evan Weber said that "there are many diverse, qualified people that can help Joe Biden and Kamala Harris Build Back Better who didn't choose to work at predatory investment firms. The revolving door between Wall Street and the White House does no good for working people or the planet.

A portion of the Warren interview with Yellen:

https://www.youtube.com/watch?v=qFSkCGjeMM4