Who will reel in a reckless Wall Street? Congress hopefully

(10 am. – promoted by ek hornbeck)

Thankfully, Financial Reform appears to be back in play again. This little News Item today, indicates a “strategic pivot” is about to occur:

Obama presses for financial reform

Mar 25, 2010 – Reuters

Financial regulation reform vaulted to the top of President Barack Obama’s post-healthcare agenda on Wednesday, with both Democrats and Republicans upbeat about passing legislation soon.

After a meeting with Obama, Senate Banking Committee Chairman Christopher Dodd said the president wants results soon from Congress on proposals to tighten U.S. government oversight of banks and the capital market.

[…]

“We’re going to get a bill done,” Dodd told reporters outside the White House. He was joined by fellow Democrat Barney Frank, chairman of the House Financial Services Committee who said the issue will be Congress’ No. 1 concern after a two-week Easter break.

[…]

Pivoting from their victory this week on healthcare reform, Democrats are pushing hard for a crackdown on risky bank practices, over-the-counter derivatives, credit rating agencies and other segments of the financial sector, with the aim of preventing another crisis.

[…]

Smart move. And great way to tap into some of that “suppressed” Citizen Outrage — as the average Joe & Jane, continues to wonders “Where’s MY Bail Out?”

No doubt, whoever can assuage that Outrage (and reel in a reckless Wall Street), will win-over Voters later this year …

[continuing …]

Democrats will be hard-pressed to assemble the 60 votes likely to be needed to get a bill through the Senate, but analysts said odds still favored the approval of reform legislation this year.

[…]

With November elections approaching, Democrats are betting that Republicans will want to put some distance between themselves and Wall Street by supporting legislation that analysts say could be on Obama’s desk by May or June.

Legislation should include some form of the “Volcker rule,” which would limit large financial firms’ ability to engage in proprietary trading, Thomas Hoenig, president of the Kansas City Federal Reserve Bank, said on Wednesday.

Hoenig, among a few Fed officials to openly call for breaking up banks seen as too big to fail, said mammoth investment conglomerates have not served the economy well.

The “Volcker rule” was unveiled in January by Obama and White House economic adviser Paul Volcker, a former chairman of the Federal Reserve.

It would curb banks’ ability to buy and sell investments using their own capital unrelated to customers’ needs, bar them from sponsoring hedge funds and limit their future growth with a new liabilities-based market share cap.

http://www.reuters.com/article…

Finally, 2 years after decimating the Economy, the Big Banks MAY finally face Regulations, that prevent them from gambling away other people’s investments (AGAIN), prevent them from over-leveraging an Entire Economy, (AGAIN) — as an Armed Bandit “over-leverages” so many local Cash Registers.

But Does the newly re-proposed Financial Regulation Reform GO FAR ENOUGH?

Will ‘Standards and Poors’ and Moody’s STILL be able to hand out AAA Grades, to their ‘Favorite Customers’, as they did all of last decade?     If a Professor did the same — Hand out GOOD GRADES for a FEE — with No accounting for Merit — that Professor would be OUT of a Job (and a Career) — But Fast!

However, When a Wall Street ‘Ratings Agency’ does it — accept ‘a Bribe’ for AAA Ratings — while over-leveraging a Global Economy to the brink — well hardly a shoulder is shrugged, by our dumbed-down Media.  ‘Business as Usual”, I guess?

And if the duly-elected Senate tries again, to reel in that “Insider Gimmick” — you can be sure the Grand Obstructionist Party will kick and scream — until their beloved Corporate Benefactors get the ‘Loophole Room’, that they need, to continue NOT Failing … and to KEEP raking it in …

Dodd’s 2nd shot at financial reform still leaves loopholes

Paul Wiseman, USA TODAY — 03/15/2010

Dodd’s new plan on Monday faced an immediate barrage of criticism. The American Bankers Association said it imposed too much regulation; consumer groups said it imposed too little. “It’s a far distance from what we had hoped for,” says John Taylor, president of the National Community Reinvestment Coalition.

Political observers expressed doubts that the plan would become law, considering that Dodd, D-Conn., would need to win over Republican votes to get the 60 required to break a filibuster and ensure passage in the Senate.

Brian Gardner, who follows regulatory issues for investment firm Keefe, Bruyette & Woods, gives it a 40% chance of passage. “It’s going to be tough,” he says.

[…]

Americans have “lost faith in our markets,” he [Dodd] said. “And they wonder if anyone is looking out for them.”

The crisis exposed the weakness of a patchwork regulatory system with different agencies monitoring different types of institutions – and plenty of leeway for banks and other lenders to shop around for the laxest regulation.

Dodd’s bill aims to clarify the regulatory apparatus, making the Federal Reserve responsible for bank holding companies with assets exceeding $50 billion and for policing the entire financial system for risk. The Fed would also house a new consumer financial protection bureau.

[…]

On Monday, Shelby sounded a conciliatory note [Sen. Richard Shelby, R-AL], telling CNBC that there was agreement on 85% to 90% of the bill.

Some observers expect the Senate to ditch the most contentious parts of the legislation – beefing up consumer protection and regulating the murky market in derivatives – and pass a narrower bill.

http://www.usatoday.com/money/…

Pivot, Rail, Bluster, Rally … and then proceed to crash into another GOP Wall of Obstruction!

If the Republican pawns of Wall Street hijack these New Financial Regulations — We MUST Make them OWN it!  It must be “their Failure” to blatantly ignore again “What the People Want” — Accountability, Transparency, … some Adult Supervision.

Senate Committee on Banking, Housing, and Urban Affairs, Chairman Chris Dodd (D-CT)

Summary: Restoring American Financial Stability

Create a Sound Economic Foundation to Grow Jobs, Protect Consumers,

Rein in Wall Street, End Too Big to Fail, Prevent Another Financial Crisis

HIGHLIGHTS OF THE NEW BILL

— Consumer Protections with Authority and Independence

— Ends Too Big to Fail

— Advanced Warning System

— Transparency & Accountability for Exotic Instruments

— Federal Bank Supervision

— Executive Compensation and Corporate Governance

— Enforces Regulations on the Books

[…]

Limiting Large, Complex Financial Companies and Preventing Future Bailouts

— Discourage Excessive Growth & Complexity

— Volcker Rule

— Extends Regulation

— Funeral Plans

— Orderly Shutdown

— Liquidation Procedure

— Costs to Financial Firms, Not Taxpayers

— Limits & Disclosure for Federal Reserve Lending

— Bankruptcy

— Limits on Debt Guarantees:

Summary of Dodd’s New Bill (pdf)

If the Republican pawns of Wall Street, manage to allow those Sneaky Foxes back into the Chicken Coop– We MUST Make them OWN it!  

Cuz afterall, Obstructionists ARE the “base” of that sneaky ‘FOX News’ Network too!  And their tactics must be made painfully ‘transparent’ too.

It’s like Senator Dodd said, the People are still wondering

“… if anyone is looking out for them?”

Dodd (and Obama) want to step up for the People — that is if his Senate Banking Committee doesn’t run into that immovable ‘Wall of Resistance’, that will no doubt be raised (AGAIN) … Perhaps, this time the GOP will call it — “Waterloo, The Sequel” ???  

That’s a winning strategy, for them, eh? …  Become the ‘Champions of Wall Street’?

Great plan, Rushville!     Just KEEP stopping Progress!