And so with the banks, as reported by The Guardian, spending millions lobbying to stop the Obama administration from bringing them into line. They spent $26 million lobbying last year and you can bet they will spend a heap more this time around. The banks are also planning a lawsuit to stop Obama reining them in. US banks have no shame, they don't care how much they're hated. But if they're smart, they might try and negotiate some compromises because the political landscape has changed following the Massachusetts massacre.
That won't stop the Obama administration adopting the model that was actually developed by the Swedes. As the New York Times reports, the Swedes originally came up with the model of a stability fee or direct tax on the banks that would pay for their bailouts.
The big question is why their scheme was welcomed by the Swedish banks and yet US banks are fighting similar proposals in their country.
It might have something to do with US government plans to recoup money spent on the bailouts. But it's also because US banks have been given too much political power. Taking it away now might be impossible.
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