Will Wall Street Be Regulated After This Bail Out?

Paul Krugman has written a worrisome essay about whether Wall Street will be regulated after the Federal Reserve bails it out.  He quotes former Treasury Secretary Robert Rubin saying, "If Wall Street companies can count on being rescued like banks, then they need to be regulated like banks."  Krugman doesn't offer much hope that that will be the case:   

In retrospect, it's clear that the Clinton administration went along too easily with moves to deregulate the financial industry. And it's hard to avoid the suspicion that big contributions from Wall Street helped grease the rails.

   

   Last year, there was no question at all about the way Wall Street's financial contributions to the new Democratic majority in Congress helped preserve, at least for now, the tax loophole that lets hedge fund managers pay a lower tax rate than their secretaries.

Now, the securities and investment industry is pouring money into both Mr. Obama's and Mrs. Clinton's coffers. And these donors surely believe that they're buying something in return.

Let's hope they're wrong.