In a sharp turnaround, the administration on Thursday announced a new proposal to place limits on the size of banks and prohibitions on their commercial activities. It's an idea that one senior White House official said President Obama began considering "a couple of months ago." But the timing of the rollout, coming one day after what the White acknowledged was a "wake up call" wasn't a coincidence.
The reality of angry voters turning against them, as embodied by the election of Republic Scott Brown to the Senate seat in Massachusetts, is having a profound effect on Democratic leaders. Officials now recognize that the party appears far too aligned with financial industry bailouts and special-interest dealmaking, and that if the electoral bloodletting is to end, more distance is needed from Wall Street.