Obama faces potential peril if the SEC lawsuit ends up being a prosecution but confident he has nothing to fear from his Attorney General, he displays his usual hubris by politicizing the affair to his own benefit using it to declare that this is why congress should pass his Wall Street reform bill that, according to critics, would allow him to take over any public company that he deems unstable.
Obama is using the Goldman Sachs case to set a trap for Republicans, hoping that Republicans will do what they are already doing and that is defend Goldman which is a heavy contributor to the Democrats. Republicans can fight back by demanding a special prosecutor to get to the bottom of this matter that the SEC calls fraud and take it a step further by demanding the investigation include political donations and influence peddling this is critical considering the amount of taxpayer money used to bail out the politically connected firms.
The political fallout for Obama could be devastating, after publically chastising a supreme court decision that he says will allow big business more freedom to influence elections, he would be forced to defend himself for taking nearly one million dollars from a big bank that faces possible indictment while Republicans take the high road and lecture Democrats about the evils of big banks, Wall Street and tainted campaign donations.
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