It's certainly not related to the central problems caused by the banks nor is it related to the outrageous bonuses that they have reinstated but it's a start. After months of dawdling Obama is going after the banks who are using bailout money to lobby against a new program to fund student loans. The GOP, naturally, is outraged at this "government takeover" but somehow forgot about the fleecing of American families during the credit boom. Lenders often worked in conjunction with universities by providing money back for steering loans their way. (Gosh, isn't paying extra for a loan a type of tax on American families and students? Even worse, it was a tax to pay for fat bonuses at banks who ruined the economy.)
It's a very good target for Obama though I wouldn't mind seeing him expand this and get aggressive about the much more serious and costly problems. Yes, the banks who the American public bailed out have used millions to lobby against change. And no, this is not a new story except for a few people in Washington. There better be a lot more coming soon in this department.
"Ending this unwarranted subsidy for the big banks is a no-brainer for folks everywhere. Everywhere except Washington, that is," Obama said in remarks prepared for delivery at a community college in Troy, New York. "In fact, we're already seeing the special interests rallying to save this giveaway.
"The large banks -- many who have benefited from taxpayer bailouts during the financial crisis -- are lobbying to keep this easy money flowing. This is exactly the kind of special interest effort that has succeeded before and that we cannot allow to succeed again," he said, in fiery comments distancing himself from the banks.
