New York Senate Dem Contenders Pander to Banks

According to The New York Times, New York Sen. Kirsten Gillibrand, worried about a challenge in the Democratic primary from former Tennessee Rep. Harold Ford, is expressing "misgivings" about President Obama's proposed bank tax. Ford, too, is pandering to banks. Both are looking for campaign cash.

This is not representing the voters of New York. As a House member from a rural area, Gillibrand voted twice against the bank bailouts. She was wrong to do so. The banks needed TARP; without it they would have pulled down the whole economy. But now they can afford to be taxed. The money would go to put the government in the black and provide for community lending. The tax is cleverly constructed so as not to hit any banks with less than $50 billion in assets. If the big boys try to pass on the costs to consumers, they'll lose market share big-time.

So this is clearly a good idea (as many bankers well know), and if both Gillibrand and Ford support it, no Wall Street types will punish them. The bank tax is a real test of whether these two have any regard for the public interest—or Obama.