Tag: Banking Reform

Sen. Warren Revives Glass-Steagall, Break up TBTF

Cross posted from The Stars Hollow Gazette

Last week Sen Elizabeth Warren (D-MA), along with Senators John McCain (R-Ariz.),  Sens. Maria Cantwell (D-Wash.) and Angus King (I-Maine), introduced legislation that rein in the excesses of the Too Big Too Fail banks. The bill would require banks that accept federally insured deposits to focus on traditional lending and would bar them from engaging in risky securities trading. It would also bar banks that accept insured deposits from dealing swaps or operating hedge funds and private equity enterprises.

The legislation introduced today would separate traditional banks that have savings and checking accounts and are insured by the Federal Deposit Insurance Corporation from riskier financial institutions that offer services such as investment banking, insurance, swaps dealing, and hedge fund and private equity activities. This bill would clarify regulatory interpretations of banking law provisions that undermined the protections under the original Glass-Steagall and would make “Too Big to Fail” institutions smaller and safer, minimizing the likelihood of a government bailout.

“Since core provisions of the Glass-Steagall Act were repealed in 1999, shattering the wall dividing commercial banks and investment banks, a culture of dangerous greed and excessive risk-taking has taken root in the banking world,” said Senator John McCain. “Big Wall Street institutions should be free to engage in transactions with significant risk, but not with federally insured deposits. If enacted, the 21st Century Glass-Steagall Act would not end Too-Big-to-Fail.  But, it would rebuild the wall between commercial and investment banking that was in place for over 60 years, restore confidence in the system, and reduce risk for the American taxpayer.”

“Despite the progress we’ve made since 2008, the biggest banks continue to threaten the economy,” said Senator Elizabeth Warren.  “The four biggest banks are now 30% larger than they were just five years ago, and they have continued to engage in dangerous, high-risk practices that could once again put our economy at risk.  The 21st Century Glass-Steagall Act will reestablish a wall between commercial and investment banking, make our financial system more stable and secure, and protect American families.”

Five Facts About the New Glass-Steagall

by Simon Johnson, Bloomberg The Ticker

Naturally, Wall Street will respond with a huge disinformation campaign, saying that the bill would cause the sky to fall. As the debate intensifies, keep in mind the following five points.

1) The bill would actually help small banks, because it would force the taxpayer-subsidized megabanks and related financial companies to break up. [..]

2) The simplifying intent of the 21st century Glass-Steagall Act is complementary to other serious reform efforts underway, including plans for the “resolution,” or managed liquidation, of any financial firm that fails. [..]

3) Proponents of big banks will claim that the breakdown of the original Glass-Steagall Act (which separated commercial and investment banking) did not contribute to the crisis of 2007-08. [..]

4) As the preamble to the 21st century Glass-Steagall Act points out, it represents a convergence with European reform thinking, as seen in the Vickers Report (for the U.K.) and the Liikanen Report (for Europe more broadly). [..]

5) The Treasury Department is not going to welcome the legislation — in fact, it may assist in mobilizing opposition. At this stage, this is an advantage, not a problem. Treasury has a severe case of reform fatigue. It’s time for someone else to carry the ball.

Remember Citigroup

by Simon Johnson, Huffington Post

The strangest argument against the Act is that it would not have prevented the financial crisis of 2007-08. This completely ignores the central role played by Citigroup.

It is always a mistake to suggest there is any panacea that would prevent crises — either in the past or in the future. And none of the senators — Maria Cantwell of Washington, Angus King of Maine, John McCain of Arizona, and Elizabeth Warren of Massachusetts — proposing the legislation have made such an argument. But banking crises can be more or less severe, depending on the nature of the firms that become most troubled, including their size relative to the financial system and relative to the economy, the extent to which they provide critical functions, and how far the damage would spread around the world if they were to fall.

Executives at the helm of Citigroup argued long and hard, over decades, for the ability to expand the scope of their business — breaking down the barriers between conventional commercial banking and all of forms of financial transactions, including the most risky. In effect, the decline of the restrictions established by the original Glass-Steagall — at first gradual but ultimately dramatic — allowed Citigroup to increase the scale and complexity of gambles that it could take backed by deposits and ultimately backed by the government.

What are the chances of this bill getting passed? Probably not all that good considering the Wall St. cronies like Sen. Chuck Schumer (D-NY) who most certainly oppose it. Even if it makes it through the Senate relatively intact in intent, the wild children in the House will most certainly kill it. We need more Liz Warrens in both houses of congress.

(Updated) One Last Bankers Gift from the Senate

Cross-posted at Progressive Blue.

prednisone 20mg Update: Obama Will Not Sign Bill Seen As Cover For Bank Foreclosures. Apparently a pocket veto.

This is almost comical. If you are a member of the “enthusiasm gap,” have watched the Democrats represent the bankers over constituents and  get the felling that Nancy Pelosi’s recent call for federal probe on mortgage lenders was nothing more than a letter to be forgotten on November third, here’s a little verification for you.  

Apparently another great letter writer, Patrick Leahy who wrote so many sternly written letters to the Bush administration but never got around to a subpoena, is capable of taking action. After claiming “constituents” called him and pressed to have the “Interstate Recognition of Notarizations Act”  pushed through, he got right on it.

The Senate doesn’t seem partisan once they hear their master’s voice. Not a Democratic filibuster for a bill meant to protect bank and mortgage processors from liability, not the Democratic majority voting down “out of state electronic notarization,” but a banker’s bill that passed in the Senate by unanimous consent on the day before they all went back to their states so they can tell constituents how Democrats represent the Middle Class.  

This “debate free” bill quietly zoomed through the Senate.

The bill, passed without public debate in a way that even surprised its main sponsor, Republican Representative Robert Aderholt, requires courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents.

The timing raised eyebrows, coming during a rising furor over improper affidavits and other filings in foreclosure actions by large mortgage processors such as GMAC, JPMorgan and Bank of America.

Questions about improper notarizations have figured prominently in challenges to the validity of these court documents, and led to widespread halts of foreclosure proceedings.

The Ohio Secretary of State, Jennifer Brunner had a few thoughts about timing.  

The Week in Editorial Cartoons – BP is the New BS

Crossposted at Daily Kos

http://cinziamazzamakeup.com/?x=miglior-sito-per-comprare-viagra-generico-25-mg-a-Roma THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

:: ::



Taylor Jones, Politicalcartoons.com, Buy this cartoon

Unpluggable Leak In Gulf Between You And Wall Street

Twenty months after the financial meltdown of 2008, the U.S. congress is moving ahead with its financial system reform. In the following weeks, the Senate and House bills will be combined. While many details are still to be ironed out around issues like derivatives and consumer protection, it is clear that the legislation will not break up the massive banks that are blamed with the crisis. President Obama says the legislation will ensure the U.S. taxpayers never again bailout Wall Street, but Public Citizen’s David Arkush says that until the banks influence on Capitol Hill is broken up or countered, there is no way to guarantee an end to bailouts.



Real News Network – May 29, 2010

Banks still the powerhouse in DC

follow url David Arkush: Bank lobbyists outnumber reform lobbyists 11 to 1 on derivatives legislation alone

Photos and Stories from the Labor March on Wall St.

Cross-posted many places including DailyKos.

On Thursday afternoon the AFL-CIO held a rally to protest the banking bailout and demand a peoples’ bailout. There was a call for not just regulating the banks that almost took this nation down but also doing an about face and forcing the bankers to bailout the people.

go here Do you think Wall Street should pay for the jobs they destroyed?

“People in New York and across the country who did nothing wrong and want to work have paid for the misdeeds of the big banks with their jobs, homes and retirement savings,” said Richard Trumka, the A.F.L.-C.I.O. president.

http://cinziamazzamakeup.com/?x=prezzo-viagra-generico-50-mg-pagamento-online-a-Roma Do the elected officials of this nation think Wall Street should pay for the jobs they destroyed?

See a few photos and read some people’s stories below.  

The Week in Editorial Cartoons – Treating Mother Earth Badly

Crossposted at Daily Kos

http://maientertainmentlaw.com/?search=viagra-canadian-pharmacy THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

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Bill Day

Bill Day, Comics.com (Memphis Commercial-Appeal)

The Week in Editorial Cartoons – With Malice Towards All

Crossposted at Daily Kos

follow link THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

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David Fitzsimmons, Arizona Daily Star, Buy this cartoon

The Week in Editorial Cartoons: Let ’em Choke On It

Crossposted at Daily Kos

get link THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

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Chris Britt, Comics.com, see reader comments in the State Journal-Register

The Week in Editorial Cartoons – Al Gore vs the Denialists

Crossposted at Daily Kos.  If you choose to recommend it there, the Rec Button may have been pushed to the bottom after the last diary comment made.

THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

:: ::



Chris Britt, see reader comments in the State Journal-Register (Springfield, IL)

The Week in Editorial Cartoons – Sarah Palin’s Brilliant FOX Debut

Crossposted from Daily Kos.  I didn’t have the time yesterday to post it here.

THE WEEK IN EDITORIAL CARTOONS

This weekly diary takes a look at the past week’s important news stories from the perspective of our leading editorial cartoonists (including a few foreign ones) with analysis and commentary added in by me.

When evaluating a cartoon, ask yourself these questions:

1. Does a cartoon add to my existing knowledge base and help crystallize my thinking about the issue depicted?

2. Does the cartoonist have any obvious biases that distort reality?

3. Is the cartoonist reflecting prevailing public opinion or trying to shape it?

The answers will help determine the effectiveness of the cartoonist’s message.

:: ::

The Teabaggers’ Intellectual

Clay Bennett

Clay Bennett, Comics.com

Crony Capitalism, Part 4

In Part 4 of his continuing series about the causes of and possible fixes for the ongoing economic and banking crisis with Paul Jay of The Real News, Dr. Robert Johnson, Director of Financial Reform for the Roosevelt Institute, and Executive Director of the Institute for New Economic Thinking (INET) discusses his ideas of the main principles for the kind of legislation needed to remedy the situation.

Johnson notes that without fundamental changes in the way the Obama Administration is dealing with, and a new regulatory framework governing, the actions of investment banks on Wall Street and the forms of financial instruments like derivatives that they can create and sell, that another very serious economic crash, almost certainly worse than what we’ve seen so far, is a virtually certainty to occur, probably sooner than later, and that firms that are “too big to fail” must be allowed to fail.



Real News Network – January 2, 2010

The crash can happen again

Robert Johnson: Nothing in current financial reform legislation will stop another crash

You can watch all four parts of this interview under the tag Robert Johnson.

Crony Capitalism, Part 3

Following Part 1 and Part 2, Dr. Robert Johnson, Director of Financial Reform for the Roosevelt Institute, and Executive Director of the Institute for New Economic Thinking (INET) (a project with George Soros), in this third part of a series of discussions with Paul Jay talks about the real choices that were ignored by the Obama White House for financial reform in dealing with the financial crisis rather than simply pumping money into the investment banks.



Real News Network – December 31, 2009

Obama had a choice

Robert Johnson: Obama should have saved the functions of the banks not the bankers and the shareholders

Also see (on the flip):

What Congress Did Not Want You to Read: Robert Johnson’s Testimony on OTC Derivative Market

Saturday, 11/7/2009, by Lynn Parramore at New Deal 2.0 (a project of the Roosevelt Institute)

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