The Good the Bad and the Ugly in the Dodd Bill
Here are some highlights regarding the 1,300 page bank reform bill released by U.S. Senator Chris Dodd (D-CN) yesterday.
THE GOOD
1) Capital requirements and leveraging requirements to be set by regulators (although some reformers would like these set in law to makes sure they do the job).
2) Creates a council of systemic risk regulators called a Financial Stability Oversight Council, which is generally a good idea. We don’t want to just leave it to the Federal Reserve.
3) Obama’s “Volcker Rule” included, not perfect, but at least it made the cut.
4) Consumer Financial Protection Agency remains a strong institution with rulemaking and enforcement authority over banks and nonbanks.
5) No new preemption of state attorneys general.
6) Credit rating agencies, which gave AAA ratings for toxic mortgage-related securities, can be sued for damages if they don't do their job.
7) Good reforms of the Federal Reserve system, including: NY Fed President will be appointed; no bank selection of directors; no bank personnel as directors; and a annual Fed audit.
THE BAD
1) No break up of the too big to fail banks, no prevention of too big to fail, just a costly process for unwinding the firms once they do fail and a $50 billion industry fund to pay for such a collapse.
2) No caps on how large a bank can grow. The size limitation that was included as part of the Volcker rule just says that companies cannot merge to become greater than 10 percent of all liabilities in the system. This enshrines the too big to fail institutions that do exist and does not place a limit on the size that they can achieve organically.
4) Continuing derivatives loopholes for foreign exchange traded derivatives and there appears to be a problem with the lack of regulation for non-clearing house participants.
5) No real reform of credit rating agencies, such as by creating public or private competition for these failed institutions.
6) The Consumer Financial Protection agency will be housed at the Federal Reserve a move to appease Republicans that will undermine its legitimacy with the public. CFPA will not have authority over all banks, just the largest banks, a bad idea sure to encourage risky behavior on the part of smaller banks. CFPA authority over "large" payday lenders (exempting how many?). Systemic risk regulators of the Financial Stability Oversight Council can override CFPA rules with a 2/3 majority vote and just one regulator could delay CFPA rules. These are bizarre provision, isn’t it time to give consumer representatives a veto over banking regulators and not visa versa?
THE UGLY
Usually a draft like this sets the high water mark. With 1,500 bank lobbyists on the hill and $390 billion spent on finance industry lobbying in 2009, the public will need to weigh in to fix the problems that do exist in the bill and hold off provisions that will make the bill worse. Get involved! Send an email to your legislators at www.BanskterUSA.org.
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predatory lending
A war is being fought in this country, A war where very few true American patriots can be found. Every day our own neighbors are being financially beaten, their homes are being taken, and they are being left for dead in their own streets, Numerous families are being torn apart, and left hungry and wanting for help. So reminiscent of the old America and England, before the revolution. Yet all the while this is somehow different,. . where as our neighbors and their politicians are all turning a blind eye, Many people in this country have found it easier to look away and to blame the fallen, ("They didn't deserve that loan anyway"), Yet all the while more and more around us continue to fall in internal conflict and pain.
Sometimes I wonder about the Patriotism of so many of my neighbors to whom exclaim it in this country. Hollow words and accusations which seem to be backed by inaction and downright ethical cowardice. . .
When will our neighbors rise to the patriotic levels of our fore fathers, and stand against those in power? , Will they ever courageously stand up against those to whom take our own neighbors property and livelihood by force in the light of day?
Will my neighbors ever find their place in a grand history?. . . . .Or is their patriotism of a convenient way. . . only put forward as long as one doesn't expect anything to be really done by them, or any expectation of sacrifice for their own neighbors
Many more Americans have fallen prey to "To Big To Fail" Financial Corporations, . . Than to any terrorist group, by far . . . . . Will any notice? . . Will any of my neighbors rise and face their enemy, face to face. . . .Or will they run and hide, so they will not be immediately consumed. . . Only a short time will tell . . . . . .
http://lendersgonebad.webs.com/index.htm
About that Obama video you have posted
What private corporation donated the most to Obama? The answer is Goldman Sacks http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638 After I watched a documentary called Orwell Rolls in his Grave http://mrxfromplanetx.com/orwell-rolls-in-his-grave I found it rather peculiar the corporate media was covering Obama as much as they did. They would cover anyone that much who would cost them. You think the only reason they didn't cover Kucinich is because they didn't like the way he looks? http://ut.alternativeconservative.com/2010/02/obama-economic-hit-man
Rico laws and Banksters :Compare what Congress said in the law
FRANKLY I CAN’T FIGURE OUT WHY NO ONE HAS EVER BROUGHT UP THE RICO LAWS, at least for consideration. Here’s a brief relevant excerpt:
US CODE TITLE 18, – RICO LAW
http://graham.main.nc.us/~bhammel/INS/RICO.html
Section 1 of Pub. L. 91-452 provided in part that:
“The Congress finds that (1) organized crime in the United States
is a highly sophisticated, diversified, and widespread activity that
annually drains billions of dollars from America’s economy by unlawful
conduct and the illegal use of force, fraud, and corruption; (2)
organized crime derives a major portion of its power through money
obtained from such illegal endeavors as syndicated gambling, loan
sharking, the theft and fencing of property, the importation and
distribution of narcotics and other dangerous drugs, and other forms of
social exploitation; (3) this money and power are increasingly used to
infiltrate and corrupt legitimate business and labor unions and to
subvert and corrupt our democratic processes; (4) organized crime
activities in the United States weaken the stability of the Nation’s
economic system, harm innocent investors and competing organizations,
interfere with free competition, seriously burden interstate and foreign
commerce, threaten the domestic security, and undermine the general
welfare of the Nation and its citizens; and (5) organized crime
continues to grow because of defects in the evidence-gathering process
of the law inhibiting the development of the legally admissible evidence
necessary to bring criminal and other sanctions or remedies to bear on
the unlawful activities of those engaged in organized crime and because
the sanctions and remedies available to the Government are unnecessarily
limited in scope and impact.
“It is the purpose of this Act [see Short Title note above] to seek
the eradication of organized crime in the United States by strengthening
the legal tools in the evidence-gathering process, by establishing new
penal prohibitions, and by providing enhanced sanctions and new remedies
to deal with the unlawful activities of those engaged in organized
crime.”
BRUCE E. WOYCH