I mentioned earlier that the Goldman fraud allegations would likely be wielded by Democrats as an exemplar in the financial reform fight. Yup. (Emphasis mine):
Washington, DC—Nevada Senator Harry Reid released the following statement today in response to SEC charges against Goldman Sachs regarding mortgage investments:
“Millions of Nevadans and Americans are struggling every day to make ends meet and stay in their homes. Any accusations about wrongdoing that could affect Nevada families should be taken seriously and fully investigated. I’m pleased that the Obama Administration is using all of the tools in its arsenal to bring accountability to Wall Street and standing up for homeowners and small businesses across America.
“This is also why we need to pass strong Wall Street reform this year. When we clean up Wall Street, we will establish clear rules of the road to help keep Nevada families in their homes while protecting consumers, investors and financial institutions. We will stop banks from becoming ‘too big to fail’ and end taxpayer bailouts. Republicans should stop obstructing our efforts to hold Wall Street accountable so that Main Street can once again prosper.”
And:
WASHINGTON – Today, Senate Banking Committee Chairman Chris Dodd (D-CT) issued the following statement on news the Securities and Exchange Commission charged Goldman, Sachs & Co. and one of its vice presidents with defrauding investors.
“The SEC lawsuit against Goldman Sachs makes serious allegations involving securities fraud. I will not comment on ongoing litigation.”
“But let’s be clear, we don’t need to know the outcome of this case to know that the opaque nature of unregulated asset backed securities fueled the financial crisis. And even as our country is still recovering from those mistakes, Wall Street financial firms continue to game the system.”
“We must pass Wall Street reform to bring practices like these into the light of day and protect our economy from another devastating blow.”
Some more:
Washington – U.S. Senator Blanche Lincoln, D-Ark., Chairman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry today released the following statement in response to the Securities and Exchange Commission’s (SEC) announced charges against Goldman Sachs.
“This is another example of how risky Wall Street behavior puts our nation’s financial system in peril and further illustrates the need for the strong reform that my legislation provides. My legislation reigns in this risky behavior by ending the days of backroom deals, providing 100 percent transparency to the derivatives market, putting an end to ‘too big to fail’ and preventing future bailouts,” Lincoln said.
One interesting thing to note is that it isn’t just about the bill. Reid focuses on “Nevada families” and Lincoln plays up her efficacy — a central theme of her re-election campaign — by referring to it as “my legislation.” (She can claim the derivatives, but the rest is questionable.) Both are facing serious challenges back home. Dodd, who’s retiring and could more credibly claim the bill as his own, keeps things a bit more measured.
