From LA to the Dept. of Treasury and Back

I just got back from DC after a whirlwind trip (Saturday to Tuesday). I hate flying cross country; it really bothers my injury. But I thought it would be interesting to go to the Dept. of Treasury with a bunch of bloggers and kick it with a host of Treasury officials including Tim Geithner. It was an "off-the-record" meeting and I think that made the participants more relaxed to speak freely, but did they say anything they might not have because it was supposed to be off the record? I doubt it.
I brought up the fact that they were losing their political capital on the CFPA if they move it to the Fed because the public wants it to be an independent agency with actual power. Unfortunately, they seemed to think that as long as it had the teeth they wanted, they weren't--and the public shouldn't be--concerned where it was housed. And then of course some members brought up that the Senate (Dodd and Corker) still had to work out their issues first anyway and they intimated how problematic the Senate has been. I pushed the point that it does matter where it's housed, especially to the American public.
Another issue brought up is one many bloggers have talked about: Republicans do an incredible job with messaging. And the Obama White House has been terrible framing their priorities. The Treasury officials admitted that they weren't very good at getting their message out there. Some seemed resigned to it, while others admitted there was a pressing need to get better at it.
Felix Salmon of Reuters has a very good piece up about the meeting:
I can’t quote what anybody said, even anonymously, but I can tell you that the message from Treasury was that financial reform is not dead in the Senate, and that in fact on some matters, including derivatives reform, there’s real hope that the Senate can put something together that’s even stronger than what the House passed. I’ll believe it when I see it, but the general idea seems to be that so long as something gets out of committee, the final bill might actually have some teeth.
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More generally, I came away with the impression that life at Treasury is not much fun, on a day-to-day basis, and that the stresses of trying to set economic policy in the face of strong opposition from both the banking lobby and the Republican party are wearing on the officials there.
We really need to keep the pressure up on this issue. The CFPA is too important.

