A Bloomberg piece today highlights a Democratic proposal to shove aside one of the biggest champions of a cap-and-trade scheme on global warming–Wall Street:
At least nine members of the majority party say speculation by Wall Street banks may cause excessive price swings in the cap-and-trade system of pollution allowances at the center of President Barack Obama’s plan to curb global warming. The senators say they may limit participation to polluters needing permits, ban derivatives or impose stricter regulations than exist in today’s energy markets.
Goldman Sachs, Obama’s top corporate source of campaign funds, has been a lead lobbyist for carbon caps. Can Democrats really freeze them out of the promised profits of carbon trading? Will General Electric, another Obama ally, also be left in the cold?
I doubt it. Expect Sen. Charles Schumer, D-N.Y., and Rep. Charlie Rangel, D-N.Y., to come to Wall Street’s rescue, with some help from White House chief of staff and Goldman alumnus Rahm Emanuel. Also expect a bump in Dems’ Wall Street fundraising in coming weeks.
