>>House scales back proposed Wall Street rules
Posted December 11, 2009on:
It seems the progressives in the House are not going to be allowed to strangle the financial industry with regulations. There are plenty of regulations already in place to keep the financial industry in check, but what we don’t seem to have is the regulations in place to keep congress men like Rep. Barney Frank and Senator Chris Dodd from messing with the enforcement of the regulations.
Wall Street is all about making money. Making money in any way they can and with any kind of deal whether “real” or not. Derivatives aren’t “real” but money can be made by buying and selling these pipe dreams not worth the paper their printed on, so Wall Street bankers had a field day which lead up to the Financial Crisis 2008. Which, by the way, We the People have since learned was not a “crisis” after all, but another little scheme to bilk the tax payer out of $800 billion (remember TARP?). The banks lined up with their hands out to collect these billions from the Treasury Secretary who has sole control over these funds. Then Congress had a brainy idea and attached some strings to the money and Wall Street bankers couldn’t pay back the funds soon enough. This then made it clear the TARP bail out wasn’t necessary.
Anyhow we now know the Bail Out was another scam and the financial problems with derivatives and poor banking practices that got some banks in trouble was due to not enforcing the regulations already on the books. (the regulations were not enforced because the bankers were paying-off key congressmen, chief among them Frank and Dodd!)
But congress could not admit they were the culprits behind all the failures and mortgage crisis (was and is real) so they had to do something to “fix the problem” so the nasty greedy bankers couldn’t get away with such shenanigans in the future. It seems now a few saner heads have prevailed and taken the teeth and the added bloated bureaucracy needed to enforce the new legislation out of the new legislation.
(Sigh) in some very rare occasions government does manage to get it somewhat right or workable. But don’t hold your breath waiting for the next time because the “rightness” only happens once in a blue Indian moon.
Prodded by moderates, however, nearly half the Democrats teamed up with Republicans late Thursday to loosen restrictions on derivatives and reject tougher regulations.Before a final vote Friday, House members will have to decide whether to support an amendment to kill a proposed Consumer Financial Protection Agency, one of the central features of the legislation. The agency would consolidate consumer lending regulations and enforcement that is now split among several banking regulators.
Eliminating the consumer agency could cost the overall bill support from liberals.
Democratic leaders were also seeking to revive legislation that would let bankruptcy judges rewrite mortgages to lower homeowners’ monthly payments. A coalition of banking organizations on Thursday sent lawmakers a letter urging them to vote against the amendment. The House previously passed bankruptcy-mortgage legislation, but it failed in the Senate.