As one would suspect the new financial reform proposal is not about cleaning up Wall St. but advancing the crony capitalism, i.e., the progressivist dream of marrying big business and big government, and electing and raising money for Democrats. This op ed by WSJ columnist Kimberly Strassel, tells the story.  According to Strassel here’s how the game plan has worked:

In the run-up
to the 2006 election, New York Sen. Chuck Schumer and then-Rep. Rahm
Emanuel?in charge of electing Senate and House Democrats?took a special
interest in tapping the financial sector. The political winds were
shifting, the two men warned Wall Street. The message the bankers heard
was that thing could be bad for them, or less bad, depending on the
love they showed. The resulting tide of financial-sector cash helped
propel Democrats to their majority.

The next year Democrats vowed to double the taxes on hedge funds and
private equity. The financial titans coughed up, and Mr. Reid dropped
the idea. In 2008, the majority threatened to crush “speculators” who
were supposedly driving up the price of oil. The campaign money flowed,
and Illinois Sen. Dick Durbin swept in with legislation that wasn’t too
mean to his Chicago futures exchanges.

Then came the financial crisis and a whole new political opportunity
for the taking. Mr. Obama campaigned on terrorizing Wall Street, and
was rewarded with (among other financial-sector contributions) nearly
$1 million in donations from Goldman Sachs.

And now they’re back at it again with the big boys on The Street quite happy to play the game. As Strassel points out:

As for the bill the Senate is now debating, it is tough alright?just
not on the guys who’ve been handing over all this money. On the No. 1
issue?whether it protects taxpayers from again being held to ransom by
a failing bank system?the legislation remains a giveaway. The financial
giants particularly like a provision that allows the FDIC to backstop
any failing bank (or parent, or affiliate) by guaranteeing their
corporate debt, with congressional approval.

And if anyone thinks the cozy financial relationship between Dems and Wall St. is changing:

In the 2010 cycle so far, the securities and financial sector has
stumped up $5.3 million for Senate Democrats. That’s three times the
amount it gave to Senate Republicans. The top three Senate recipients
include Mr. Schumer ($1.4 million), his fellow New York Sen. Kirsten
Gillibrand ($630,000) and Mr. Reid ($530,000).