Chris Whalen reports that the PWG is preparing a white paper in cahoots with the Federal Reserve and the Office of the Comptroller to thwart and block FDIC reform efforts. The white papers prepared by the PWG are never released to the public, so its all behind closed doors activity.
Whalen goes on to inform us that the PWG was created in 1988 by President Reagan. The informal group allows the execs at the biggest banks to influence public policy in Washington. This groups is also sometimes referred to as the plunge protection team or PPT. A far more nefarious name is going to have to be given to this special group of criminals if they continue this sort of behavior to block FDIC reform efforts.
The fact that the PWG is in league with the Fed and Treasury against the FDIC board is all you need to know about the politics of reforming private label mortgage securitization. If Barack Obama were really interested in reforming Washington, he would rescind President Reagan’s executive order and disband the PWG for good. Allowing the big banks which participate in the PWG to lobby financial regulators and members of Congress without any public disclosure is a national scandal and makes a mockery of any claim by Barrack Obama to be changing the business of Washington.