Summers Rallies for Financial Reform

Flickr/<a href="http://www.flickr.com/photos/worldeconomicforum/374706082/">World Economic Forum"</a>

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


Larry Summers, the top economic aide and somewhat mercurial adviser to President Obama, told leading US business leaders in a speech in New York yesterday to accept the bitter pill of financial reform. “A strong government (that) responds to market failures, provides social protection regulates potential abuses and supports economic conditions is undeniably in the long-run interest of business, he told audience members.

Summers’ speech comes as the Senate banking committee, led by Sen. Chris Dodd (D-Conn.), is trying to reach an agreement on a bipartisan financial-reform bill. The Obama administration has of late deployed some of its top financial officials—Treasury Assistant Secretary Michael Barr, even President Obama himself—to drum up support in the financial-services community for Congress’ proposed crackdown on financial products, the housing markets, and mortgage lenders, while also bolstering consumer protections—a major sticking point for lawmakers in Washington.

Here’s a few other highlights from Reuters’ report on Summers’ stump speech yesterday:

While Summers said he understood business antipathy, “history teaches us that active government is a necessary force,” he added.

To make his point, Summers suggested that few, if any, major financial institutions would have survived without the emergency liquidity offered by the government.

It was just 18 months ago that leading companies were reduced to borrowing money overnight because they were unable to borrow for a week, he said. The nine financial institutions benefited by the U.S. bailout fund today have a combined market value approaching $1 trillion, he said.

On comprehensive financial reform, he said “On one level, it’s mind numbingly complex. On another, it’s not that hard.”

A BETTER WAY TO DO THIS?

We have an ambitious $350,000 online fundraising goal this month and we can't afford to come up short. But when a reader recently asked how being a nonprofit makes Mother Jones different from other news organizations, we realized we needed to lay this out better: Because "in absolutely every way" is essentially the answer.

So we tried to explain why your year-end donations are so essential, and we'd like your help refining our pitch about what make Mother Jones valuable and worth reading to you.

We'd also like your support of our journalism with a year-end donation if you can right now—all online gifts will be doubled until we hit our $350,000 goal thanks to an incredibly generous donor's matching gift pledge.

payment methods

A BETTER WAY TO DO THIS?

We have an ambitious $350,000 online fundraising goal this month and we can't afford to come up short. But when a reader recently asked how being a nonprofit makes Mother Jones different from other news organizations, we realized we needed to lay this out better: Because "in absolutely every way" is essentially the answer.

So we tried to explain why your year-end donations are so essential, and we'd like your help refining our pitch about what make Mother Jones valuable and worth reading to you.

We'd also like your support of our journalism with a year-end donation if you can right now—all online gifts will be doubled until we hit our $350,000 goal thanks to an incredibly generous donor's matching gift pledge.

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