The political fur is flying on Wall Street over the Goldman Sachs allegations.
Few are trying to defend Goldman if the substance of the allegations are correct; however, the Obama administration has many enemies on the Street.
Many are openly questioning the timing of the announcement. Why? Because a vote on financial reform is imminent...and victory is not assured.
Supporters of financial reform need 60 votes to push the financial reform bill to the Senate floor for a vote.
Roger Freeman, a respected securities analyst at Barclays Capital, noted that "We believe that Senator Dodd has targeted a vote on the Senate bill...by April 26th, and given the short span of time between now and the end of the month, we are not surprised to see the stepped up support for the bill."
Freeman went on to say, "Today's SEC announcement...was a well-timed, and perhaps not coincidental, effort to sway some on-the-fence Republicans to support a tougher financials bill."
Stepped up support indeed: President Obama just said, "anyone who opposes these reforms is going to be leaving taxpayers on the hook" in the event of future crises.
But House Republican leader John Boehner is having none of it. He shot back: "Despite President Obama's rhetoric, his permanent bailout bill gives Goldman Sachs and other big Wall Street banks a perpetual, taxpayer-funded safety net by designating them 'too big to fail.' Just whose side is President Obama on?"
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