Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

Matt Yglesias points me to Daniel Gross, who writes in Slate about the history of Wall Street opposition to regulation and reform:

For the past several decades, Wall Street has continually told Washington that if the Street can’t do things the way it always has, and if the government changes the rules to mandate greater transparency and customer protection, that the geniuses in Lower Manhattan won’t be able to make money, and it would stunt the industry. They’ve been wrong every time.

It’s worth noting that in all of Gross’s examples, the geniuses were actually right: they complained that they’d make less money, and they did. The reforms may have been good for everyone else, but they really did erode the profits of the banks that had built up their franchises around offering services under the old rules. As Gross says about their latest self-serving whining, “The opposition to moving derivative trades to a clearinghouse isn’t about protecting customers. It’s about protecting the entrenched positions and profits of large banks.”

That’s all perfectly understandable, of course. The real puzzlement is why customers haven’t ganged up to complain about this more. Or, for that matter, aggressive small banks that think they could break into the derivatives market if it were more transparent. It’s pretty obvious why big banks don’t want to give up the massive profits of the OTC derivatives trade, but a little less clear why their opposition is so muted.

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up to $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

FOLLOW THE MONEY

Corporations and billionaires don’t fund journalism like ours that exists to shake things up. Instead, support from readers allows Mother Jones to call it like it is without fear, favor, or false equivalence.

And right now, a longtime friend of Mother Jones has pledged an incredibly generous gift to inspire—and double—giving from online readers. That's huge! Because you can see that our fall fundraising drive is well behind the $325,000 we need to raise. So if you agree that in-depth, fiercely independent journalism matters right now, please support our work and help us raise the money it takes to keep Mother Jones charging hard. Your gift, and all online donations up $94,000 total, will be matched and go twice as far—but only until the November 9 deadline.

$400,000 to go: Please help us pick up the pace!

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate