Here are some solutions for 2010 that we hope our politicians, regulators and financial wizards have made.
President Barack Obama: I resolve to stop bashing business — big business in general and “greedy bankers” and “greedy health insurance executives” in particular, not to mention “greedy investors.”
I lambasted them frequently last year, but I resolve this year to try to remember that making a profit is not illegal, immoral or un-American. In fact, it is the key to economic growth and hiring.
Congressional Democratic and Republican leaders: We resolve to accept that neither the Democrats nor the Republicans have all the right answers to all the nation's problems. Occasionally, the other party has legitimate ideas that should be incorporated into legislation.
Rep. Barney Frank, chairman of the House Financial Services Committee: I resolve to move carefully on the financial services reform legislation, listening to and carefully considering the objections of those who see danger in a weakening of the independence of the Federal Reserve. I will remember as I legislate that the Law of Unintended Consequences always hovers in the background as Congress acts.
Sen. Christopher Dodd, chairman of the Senate Banking Committee: I resolve to reconsider my reform proposal, which would strip the Fed of all of its regulatory authority, leaving it with monetary policy as its only responsibility. I will listen to the objections of former Fed chairmen and officials who have warned that this would leave the central bank with insufficient information to determine the appropriate monetary policy. I will join my colleague Mr. Frank in always remembering to consider the Law of Unintended Consequences.
All members of Congress: We resolve to put the long-term good of the country and the American people ahead of our own short-term political interests as we vote on legislation. We further resolve to remember that our leaders and staff aren't infallible, and that what we believe on any subject of legislation could be wrong.
Treasury Secretary Timothy Geithner: I resolve to pay my 2009 taxes — all my taxes.
Ben Bernanke, chairman of the Federal Reserve Board: I resolve to learn from the Fed's failure to recognize two incipient financial bubbles (Internet and housing) in time to head them off, and to take pre-emptive action sooner. But I also resolve to try not to overreact in the other direction.
Mary Schapiro, chairman of the Securities and Exchange Commission: I resolve to shake up the SEC bureaucracy, restructuring it if necessary to make sure no more Madoff-type scandals go undetected. These changes will be more than cosmetic.
Top financial services company executives: We resolve to accept that we have lost the confidence of the American people, many of whom believe we have gamed the financial system so we can pay ourselves outrageous sums of money even when we fail. To regain that confidence, we therefore resolve to rein in industry salaries to more reasonable levels and to ask tougher questions when innovative financing ideas are brought to us.
And there is one more resolution, which we hope that the American public has made: to live within our means.
