Nemesis of Summers?

Baseline Scenario has a post up: Jamie Dimon v. Larry Summers

“Jamie Dimon has won big. JP Morgan Chase now stands alone, both in financial position and political clout – including special access to the White House and, as explained in today’s NYT, Rahm Emanuel’s likely attendance at his next board meeting tomorrow. …Reformists within the administration really need a new consumer protection agency for financial products – there is little else they will be able to point to as an achievement on banking issues. Summers did not, for example, on Friday even mention the need for stronger regulation over derivatives; Dimon has likely already prevailed on this. Consumer protection is easy for people to understand. If the banking lobby really defeats or defangs it this year – as it almost certainly can – won’t that make meaningful re-regulation of banking a big issue for the midterm elections in 2010 and beyond?

And does Dimon really want to publicly confront and defeat Larry Summers?”

First word I’ve seen regarding someone with more clout than Summers…and that regulation of derivatives is off the table.

Regulation of banks would be a successful campaign plank…the question is who will run on this?


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