Research

Buried in the news over the weekend was Obama’s announcement that he is supporting requirements for banks to have more capital-on-hand as a part of his financial regulation reform package. But as we read his proposal, we couldn’t help but note that it’s his third policy announcement regarding banks in as many months:  

• DECEMBER: Obama brought the CEOs of America’s largest banks to the White House and exhorted them to lend more.

• JANUARY: Obama rolled out his so-called “bank fee”, which imposes a tax on bank liabilities, greatly diminishing any incentive for banks to lend.    

• FEBRUARY: The Financial Times reports that the Obama administration is pushing for higher capital requirements for banks as the “main thrust of its regulation reform.”

So let’s get this straight: under Obama’s plan, banks need to lend more, then pay taxes on their liability, while trying to keep more cash on hand. Sound impossible?  We thought so too.

Obama may have enjoyed being a law professor, but his lack of experience shows when it comes to running a business or how businesses work. Then again, we know that Professor Obama is more focused on pushing his job-killing proposals than focusing on policies that will help small businesses.