The President’s Working Group is Oppossing FDIC Reform Proposals Sunday, March 14, 2010 by John Bougearel of The Commodity Trading Advisor

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.

From Whalen:

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.

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

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About the author

John is a professional financial market analyst and trader, Commodity Trading Advisor, and a member of the Market Technician’s Association. John began his financial career in 1994 working with trading groups in the SP500 and 30 Year Treasuries at the Chicago Mercantile Exchange and Chicago Board of Trade. In 1999-2000, John joined Beardsley Capital Management, an equity hedge fund.  In 2000, John launched his financial newsletter, Structural Logic.  The newsletter is a risk management tool for the clients John consults with, providing them with research and insights into market behavior they can use in their own investing and trading. Structural Logic’s mission is to meet both the informational and educational needs of hedge funds and money managers, professional investors and traders. John is also the author of Riding the Storm Out, a book on the 2008-09 financial crisis and what investors and traders can do now.  

In September 2001, John published “Don’t Fight the Fed, You Just Might Win” in Futures Magazine when Fed Policies were clearly not working as intended. In May 2001, John published “No Cure for Mad Dow Disease” in Futures Magazine. Excerpts of my financial newsletter have also been quoted in Barron’s weekly magazine in 2006 and 2007.  

One wealth management client has introduces John to his investors as his “secret weapon.” Another client calls John ‘the mad scientist.’ During the worst stock market crash in our lifetime, a hedge fund client emailed on Nov 11 2008 to say: “Hey John - I just wanted to say your work has been awesome the last 6-8 weeks. Outstanding job, Bill” 

Financial Blog at Successful Trading Tips
In July 2007, as an adjunct to the Structural Logic financial newsletter, John began a financial blog called Successful Trading Tips. This blog is all about the economic policies that shape our financial markets destiny. I am also a frequent guest contributor to ZeroHedge.com, another well-known financial blogsite.  

Riding the Storm Out
Published in February 2009, Riding the Storm Out is a timely title on the financial crisis and what investors can do now to hedge the risks that lie ahead.   

Educational DVD’s: Behavioral Finance Modeling and Trade Outside the Box
Published A 75 minute educational DVD Behavioral Finance Modeling in Atlanta, June 2009 and a three hour educational DVD called Trade Outside the Box for traders and investors published at the Chicago Mercantile Exchange July 2009.     

Education
John received his B.A at St. Olaf College in Northfield MN – 1985. The bulk of John’s financial and economic background now comes from over fifteen years of self study and mentoring amongst professional peers and clients. John is well acquainted with the most relevant cutting edge financial and economic research coming out of Wharton's School of Business and the University of Chicago.