Speculative Debauch Uncovers Commie Plot

Yesterday, I blogged about how the Socialist members of the European Parliament were blocking a proposed hedge fund regulation because they believe its focus on regulating managers instead of the funds themselves makes the legislation "almost worthless."

This morning I read that the only "socialist" member of the US Congress, Barney Sanders of Vermont, is blocking the appointment of former GS partner Gary Gensler to run the CFTC. Sanders' problem with Gensler is that he is the guy who actually wrote the Commodity Futures Modernization Act. Gensler was also a strong supporter of the Gramm-Leach-Bliley Act, he called it: "a real chance for meaningful reform."

This is what's really weird: both sides agree on what needs to be accomplished. Everyone wants better regulations to prevent future economic chaos. So, each side accuses the other of playing into the hands of evil bankers. Collin Peterson says that delaying Genslers's appointment is playing right into the hands of Wall Street (see 2009 WLNR 7534278). Peterson is supporting Gensler's nomination for the same reason that Sanders is opposing it.

Blame for the deadlock should be probably be laid at the door of whoever decided Gensler was the right person to rebuild a regulatory regime he worked hard to dismantle. Is it more charitable to view the decision as dumb, or perverse?