A new Harris Poll found that 82% of Americans believe "Wall Street should be subject to tougher regulations." The poll also found that 66% agree that "most people on Wall Street would be willing to break the law if they believed they could make a lot of money and get away with it."
Huge majorities want the government to stand up to the big banks that caused the financial collapse, but Republicans are cashing Wall Street's checks and standing in the way of reform. As the Wall Street Journal reported last month:
In discussions with Wall Street executives, Republicans are striving to make the case that they are banks' best hope of preventing President Barack Obama and congressional Democrats from cracking down on Wall Street.
In fact, just yesterday it was announced that Senate Banking Committee chairman Sen. Chris Dodd (D-CT) was unable to attract "a single Republican endorsement" of his plan to reform the financial system.
The main sticking point in the debate is a proposal to create an independent agency to look out for financial consumers' best interests. Americans' distrust of Wall Street bankers, as evidenced in the Harris Poll, is further evidence that the public feels it needs an advocate that can stand up to the powerful bankers on Wall Street.
Republicans, on the other hand, are openly advocating for the protection of banks at the expense of Americans. Sen. Richard Shelby (R-AL) claims the "safety and soundness (of banks) should be number one." Echoing Shelby's sentiment, Rep. Jeb Hensarling (R-TX) brazenly declared, "the safety and soundness of the system, taxpayer protection, ought to trump" the need for a consumer-centered agency.
But reform won't only help put Americans' minds at ease. It will help get our economy moving again. Michael Ettlinger, the Vice President for Economic Policy at the Center for American Progress, wrote that significant reform is needed in order to restore investors' confidence in the system:
Investors also need to have their faith restored in some of the basic tools that markets rely on. Without reform it's going to be a long time before wise investors place much faith in credit-rating companies and professional guidance from the financial services industry. Nor are many going to be willing to put their trust in black box models developed by Wall Street's mathematical geniuses.
On this issue, Americans have made up their mind. They see the need for tougher regulations and desperately want Washington to stand up to Wall Street lobbyists. Will Republicans put their constituents ahead of their banker backers? Only time will tell.