Acknowledging the political risk of appearing to stall a popular cause, Senate Republicans voted to delay the start of floor debate on the financial regulatory reform bill — at least without some concessions first. Experts from three BU schools — Law Professor Cornelius Hurley, Mark Williams, who teaches finance at the School of Management, and political science Professor Graham Wilson — each sees the reform fight from a different perspective.
Hurley: “By using the balance sheet of the U.S. Treasury and the Fed, the ‘too big to fail’ banks have captured the derivatives market. Separating these banks from their risky derivatives activities will protect the U.S. taxpayer from further abuse.”
Williams: “Without meaningful financial reform, another Lehman-type disaster is only a matter of time. Given what is at risk, it is time for our politicians to realize that they are in the risk-management business and need to act.”
Wilson: “Politically this is all about appearances – who is seen as dragging their feet, representing Wall Street not Main Street or alternatively, not listening to other people’s ideas.”