House passes broad Wall Street regulatory overhaul

House passes broad Wall Street regulatory overhaul

news.yahoo.com

the House on Friday passed the most ambitious restructuring of financial regulation since the New Deal.

The sprawling legislation gives the government new powers to break up companies that threaten the economy, creates a new agency to oversee consumer banking transactions and shines a light into shadow financial markets that have escaped the oversight of regulators.

The vote was a party-line 223-202. No Republicans voted for the bill; 27 Democrats voted against it

(visit the link for the full news article)

At first glance this sounds like a good plan.

The legislation would govern the simplest payday loan and the most complicated high-finance trades. In its breadth, the measure seeks to impose restrictions on every house of finance, from two-teller neighborhood thrifts to huge interconnected conglomerates.

when I first read this story my first thought was good those crooks need watching... but then emotion fled and reason kicked in... this would be a needed first step to from a new National Banking system...

news.yahoo.com
(visit the link for the full news article)

There going to be watching us little guys too? I am not sure I like that (although I'm all for working against corruption and etc.).

If I'm not mistaken this is the bill that has the Audit the Fed bill amended to it. I agree the bill sucks, except for that aspect of it. But when you really think about it if the bill as is makes it way to the presidents desk then the Fed will be audited which in the grand scheme of things wouldn't matter what else is in the bill because once the dealing of the fed come to light the crooks in Washington won't have a job.

So this bill is a Trojan horse. Of course don't expect the MSM to tell you about the audit the fed amendment.

This is horrible legislation because these crooks in Washington are just as corrupt as crooks on Wall Street.

All this is saying is that Wall Street can be corrupt but they need to give more to the politicians in order to be corrupt.

This is like giving mob bosses more power. They will go after companies that pay them and protect companies that don't.

How many times since the new deal have they done this same thing?

It is a horse and pony show as always.

It hasn't worked in the past or we wouldn't be here talking about it now.

What makes anyone think it is going to work now?



peas

People you all got it wrong, our government is run by corporate America, you know the Goldman Sach and JP Morgans they choose from our president elects to the people that works in the Presidential cabinet, like the Geihners and also the Federal Reserve.

So when the government is doing this regulations, actually is not the "real" government but the monopoly that controls our government.

Yes, surprise, surprise, when you have a congress that their bills and laws are not written by them but by the various financiers that pay congress whores campaign money so they just sit there and let their hoard of lawyers write the bills that are passed to us the people then this is an eye opener of how politics are play in this nation.

So, actually the victory is for the big monopolies to step on the littler monopolies so they only ones controlling the wealth are at the very top.

You know those that go tax payer money so they can keep their wealth intact during the recession while the regular tax payer got foreclosures, unemployment and destitution, the ones on top got bonuses.

I'll have to see if I can track down just what was passed but if I'm not mistaken this would have also had the proposal that would tax every stock transaction buy/sell... in the past is wasn't, only the profits made ...

This bill still has to go before the Senate so who knows just how much their add or hack away before Obama sees it...

Source article:

Consumer advocates cheered the survival of the consumer protection agency but said the overall legislation fell short, especially in the regulation of complex investment instruments known as derivatives.

However, why has the US tax-payer had to bail out AIG repeatedly in excess of a hundred and fifty billion dollars so that AIG could settle the Credit Default Swap (CDS) and other derivatives claims of the largest trans-national financial institutions in the world?

So the bill is weak on control of derivatives! However, derivatives have been credited by many as the cause of the financial collapse last year. Barney Frank was the chief defender of the derivatives a couple of years ago and I see he is a big proponent of this bill. I have always said that Barney Franks is the poster boy of the financial collapse and this strengthens my conviction.The man is no joke, he is a cancer!

When the Obama administration first proposed a package, it called for regulations of derivatives without any exceptions. But a potent lobbying coalition that included Boeing Co., Caterpillar Inc., General Electric Co., Coca-Cola and other big companies persuaded lawmakers to dilute the restrictions. "It's a weakness in the bill and a win for Wall Street," said Barbara Roper, director of investor protection for the Consumer Federation of America. "Hedge funds and others that are not bona fide hedgers of commercial risk will slip through this language." The bill would create a Financial Services Oversight Council made up of the Treasury secretary, Federal Reserve chairman and heads of regulatory agencies to monitor the financial markets for potential threats to nation's system.

From the Article--

What this is really saying is, the corps all got together (notice it says "and other big companies...") and decided they couldn't let the government regulate their precious derivatives market, which I don't understand completely, but I understand they make an enormous amount of money off. So, they sent the lobbyists in to grant gifts to the legislators to put holes in it, like they always do, and then got the oversight council made up out of all the same crooks that screwed us over in the first place.

Good job, team Congress!


NEXUS

There seem to be some contradictions in this bill.

The sprawling legislation would give the government new powers to break up companies that threaten the economy,

They go from the above statement to this......

The government could dismantle even healthy firms if they were considered a grave risk to the economy.

Why would they need to dismantle a healthy corporation ?

So basically they can dismantle any business at any time they want, depending on who just happens to be more willing to help their agenda. I guess that's what this is about.....

Large firms with assets of more than $50 billion, and hedge funds with at least $10 billion in assets, would pay into a $150 billion resolution fund that would cover the costs of dismantling such a company.

The Federal Reserve, criticized for not spotting last year's crisis, would lose power in the legislation.

Well it doesn't seem like they will lose too much power while they're overseeing these corporations.....

The bill would create a Financial Services Oversight Council made up of the Treasury secretary, Federal Reserve chairman and heads of regulatory agencies to monitor the financial markets for potential threats to nation's system.

A goverment with the power to dismantle private corporations at their whim, doesn't seem like a free market society to me. It also doesn't seem like it's very beneficial to our country.

Get ready people they're drunk on power now, they aren't even attempting to hide their intentions anymore they're doin it right out in the open.

reply to post by chise61

Get ready people they're drunk on power now, they aren't even attempting to hide their intentions anymore they're doin it right out in the open.

You have nailed it! Tks!

Apparently the Democrats had legislation and lots of it waiting till they were in power again "because of Bush!" to make sweeping changes!

My God it is scary!

This legislation can make or break any powerful firm deemed a risk to the economy! Holy smokes! Now Congress is the Overseer! ..A firm must be Economically Correct!

Derivatives are a very complex, very huge hedge that the banking/financial community uses to continue to make money in spite of volitility. The Fanny Mae/ Mac derivatives were bound to fail because of unqualified (afirmative action) buyers. Barney Frank said they would never fail! He railed again and again about what a good thing the low income housing loans and morgage derivatives are. "Too big to fail" Barney said!. Or "Stop criticizing this program, you are a bigot!"

This bill is a testimony that big finance still is in control and Barney Frank is their man!

There was an article in Rolling Stone that had some good info on this (I think it's the same bill) and on Wall Street's influence in the Obama administration as a whole:

Rolling Stone Article

Give it a read, it's enlightening as to who's actually in charge of this stuff.

edit: the stuff about new regulation is about 2/3rds of the way down.

[edit on 12-12-2009 by Chris McGee]

reply to post by Chris McGee


I like your rolling stones article!

"The investment community feels very put-upon," Fass explained. "They feel there is no reason why they shouldn't earn $1 million to $200 million a year, and they don't want to be held responsible for the global financial meltdown." Which makes sense. S--t, who could blame the investment community for the meltdown? What kind of a--holes are we to put any of this on them?

This is the kind of person who is working for the Obama administration, which makes it unsurprising that we're getting no real reform of the finance industry. There's no other way to say it: Barack Obama, a once-in-a-generation political talent whose graceful conquest of America's racial dragons en route to the White House inspired the entire world, has for some reason allowed his presidency to be hijacked by sniveling, low-rent s--theads. Instead of reining in Wall Street, Obama has allowed himself to be seduced by it, leaving even his erstwhile campaign adviser, ex-Fed chief Paul Volcker, concerned about a "moral hazard" creeping over his administration.

Hehe! Couldn't have said it better. There is one heck of a lot of gangrene creeping around Washington! Who needs enemies when we have Barney, Chris Dodds and Obama "working" for us!

Recap: There are so many ex corporate execs in the Obama admisistration plus Barney and Dodds are so in bed with big finance that there is no way anything positive will be enacted. The entire bunch needs to be "Corzined"!

keep in mind it was a party-line vote 223-202. No Republicans voted for the bill; 27 Democrats voted against it...

I did find the current Bill H.R.4173 The Wall Street Reform and Consumer Protection Act of 2009 (Introduced in House)
I was going to randomly click a few links in the table of contents but just looking at that table gave me a headache

reply to post by DaddyBare

I did find the current Bill H.R.4173 The Wall Street Reform and Consumer Protection Act of 2009 (Introduced in House) I was going to randomly click a few links in the table of contents but just looking at that table gave me a headache

Who writes these things? There must have a roomful of pointy headed, maggot infested idealistic politico types shut away in some smelly basement somewhere that does nothing but dream up ways to screw the country, transfer wealth from taxpayers to the rich guys with fat behinds, using superfluous language insuring no one but lawyers will read it while fooling the guy on the street into voting for party liberals or just ignoring it completely. Which is what more than 90% or Americans do, I'm sure, ignore the bills entirely!

I dare anyone to click on the bill, bring up a section and actually read it! It causes grade 4 migraine in only a couple of paragraphs!

What i think it boils down to is that now there will be two economies/financial systems working ... one that is oriented for the masses or MainStreet...
the other 'System' oriented for the WallStreet, Masters-of-the-Universe,
where the landscape was changed with the introduction of dirivatives &
the ample list of CDS/CDO/MBS/ et al... which are essentially abstract hedges & bets/insurance contracts/ rather than 'pure' investments,

the repeal of the Glass-Steagal allowed all these exotic instruments to be created & proliferate like the Swine-Flu was supposed to do.
And at someones determination (Geithner-Bernanke) unfunded, unsupported and worthless Derivatives/Swaps/etc can be 'Paid' at 100%
If the issuer goes bankrupt but the buyer (GS) is most-favored by the Commanders (FED/Treas) of this new financial Landscape.

see, the Gov't wants to loosely regulate the multi-Trillion derivative market, because the FED/Treas/ will both garner taxes, fees, and a continual revenue source from the issuing-trading-&-redemption of all these financial instruments...
but will have have a new method to manipulate the economy on still another level.... other than just the MainStreet market & economy

especially when the new-landscape WallStreet system of Derivative birth-migration-death is not just the product of the USA itself---
but has it's octopus tenticles ingrained in the total global economic/financial system.

reply to post by St Udio

And at someones determination (Geithner-Bernanke) unfunded, unsupported and worthless Derivatives/Swaps/etc can be 'Paid' at 100% If the issuer goes bankrupt but the buyer (GS) is most-favored by the Commanders (FED/Treas) of this new financial Landscape.

And voter/ taxpayers allow this to happen because we are a) too stupid or b) powerless to do anything about it?

It seems to me that if (and that's a big if) the news media ever got a clue and reported on this on this rich and fertile scandal in a useful way that by this time next year a good portion of Congress will be as they say, "Corzined" (voted out)! The answer is, they won't report on it meaningfully. There is such an incredible vacuum in the news media. The sins of Frank and Dodds alone are beyond the pale let alone the Administration!

It looks like relief is at least a year away when maybe, just maybe there will be a new Majority that can begin the investigations. Of course if they are too complicit it may never happen?

reply to post by plumranch


yes, the MSM puppets would either blur the issues or just not report...

but there is a source that has penetrating news articles...just read up on several of the recent RollingStone Articles


~~~~~~~~~~~~~~~~~~~~~~~~~~~~

just to ADD to my earlier post;

which suggests the finance elites at FED/Treas/WallStreet are implementing a new tier for financial instruments and near-fraudulent paper to be blessed with the status of being 'Legitiment'.

the FED/Treas. has flooded the American system with an estimated additional $12.3 Trillion --- that money is still being sequestered within the banking community, for now ---
just watch as another ~$8Trillion is 'created' out-of-thin-air...
so that the future Global market being created/orchestrated by the Washington/NYC/London financial colossus has enough paper-money in circulation to make this soon to be (regulated-manipulated) Derivatives Market a Liquid operation.

Having a cheaper USD, together with near +$20Trillion in additional USDs,
makes it difficult for the world community to Not participate in the 'easy money' of the USAs guaranteed payout policy in the not-so-risky Derivitives Markets. but here's the catch, the FED/Treas. will manipulate the market to produce the desired Winners-& few losers ...
At Least At First, until the global players are 'Hooked',
then the Derivitives (toxic paper) Market is going to ammount be just another Gentlemanly Shakedown Operation
with the desired result being that the USA, the USD, keeping the Global Throne in world finance for another 100 years.

read-em and weep, is the poker saying

reply to post by St Udio


It's not just the US..
Japan is well on there way to adopting a similar complementary plan that would align their two markets neatly into this farce.

Japan's wealth has always been closely tied to our US markets they know mounting pressure from China and the EU threatens the worlds first and second economies... got to pay to play... as they say... Japan intends to come out of this as a major player ya know... why else would they still be propping up or USD's