Friday, April 24, 2015

Banks and business

Why would firms like McDonalds lobby against things like Dodd-Frank and financial firms not reciprocate by lobbying for things that would benefit firms like McDonalds?

Jim Crotty suggests that if there is some "solidarity" (my word, not his) between firms and banks, it would be easier to make the environment better for both.  

In my view, banks are the ones taking in the profits these days with low regulation, leverage, and excess reserves.  They fund democrats and republicans and have been shown love from both sides.  Banks run the show and there isn't any reason for them to waste resources lobbying for things that do not directly benefit them.  

Then why would firms like McDonalds lobby against things like Dodd-Frank without reciprocation? I'm not sure, perhaps Jim is right and they are trying to secure the most unregulated world for all business.  Or perhaps banks have some power over firms.  Perhaps via access to repo markets or their access to funds.

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