Quick Reaction to Obama's Big Financial Reform Speech

OK, so the big, bad financial regulation speech came and went.  Much ado about not much – most of us could have mouthed the words Ashlee Simpson-style given how abundant the coverage of this stuff has been.

Choice of Venue:  Obama was smart to speak in front of a college audience (Cooper Union).  For Obama, most college audiences are like wind-up cymbal monkeys, they would clap if he belched into a microphone.

Derivatives:  His explanation of the importance of reform was light on detail, but most of what he said was common-sensical.  The talk of putting derivatives onto an exchange was nice, but we’re talking about a lot of customized products so I don’t quite see how this will work.  Transparency is more realistic than exchange-tradable.

Tone:  He’s a cool customer and a natural speaker.  There was no silly anger and he seemed to make the case that derivatives aren’t going away, they will simply carry more disclosure.  Again, this was well-telegraphed. 

Market Reaction:  Yawn.  The Greece/Euro thing is in the driver’s seat today from jump street.  Hope you weren’t shorting banks into this speech because they are flat to mildly lower in general.

If I come across any illuminating links, I’ll post them below.