Even before memories of Wall Street's unrestrained and crippling gamble with the nation's economic stability have faded, lobbyists for financial giants are at work defying President Obama's call for tougher regulatory oversight to prevent another national financial catastrophe.
Working the halls of Congress, the finance industry's shock troops are trying to persuade lawmakers to reject crackdown legislation. Maintain the status quo, they say, as if all is well.
If Congress caves, then Americans should brace for a new era of mischief by deal-makers promoting reckless gambits that promise higher profits, but most likely could result in more economic disaster and more pleas for bailouts.
Here's an example that should send shivers up the spines of congressmen: One new investment ploy is to lure oldsters into selling their life-insurance policies for cash to Wall Street investment managers, who would then bundle thousands into bonds for speculative sale.
Think of this as vultures waiting for seniors to die so they can collect on their insurance.
Consumer fraud experts long have known that one of the most tempting and rewarding targets for con artists has been the elderly, who tend to fall for schemes that promise benefits too good to believe. Which they are.
Without strong oversight and regulations that outlaw misconduct, seniors might become the same sort of victims as homeowners who bought into mortgage schemes that ballooned their monthly payments beyond an ability to pay.
While the Securities and Exchange Commission and other regulators slept, Wall Street impresarios of scheming made fortunes simply through buying and selling paper on speculation—mortgages being the best known.
The same would be true of buying life insurance policies of the aged, then speculating on their increased value based on when policies would become due at death.
Ghoulish, yes, but when millions can be made, Wall Street's gamblers are beyond remorse, guilt or compassion. The sight of hundreds of thousands of families losing their homes to mortgage gouging should be proof enough.
Lax regulation of Wall Street by President George W. Bush demonstrably led to the worst economic calamity since the Great Depression. If Wall Street gets its way again, and Congress refuses to protect the national financial security, it will become an accomplice to another crime against the American people.
One tipoff to the outcome: Follow the money. When key members of Congress suddenly enjoy a spurt in campaign donations, regulation is automatically doubtful.
