>>Bankers Get $4 Trillion Gift From Barney Frank: David Reilly – Bloomberg.com
Posted January 14, 2010on:
Oh how the bankers love Barney! With the Wall Street Reform and Consumer Protection Act that written by Rep. Barney Frank especially for his banker friends and passed by the House Barney came thru for his friends. You know those people as the “fat cats” President Obama is trying to get us all to hate and place the blame on for all the problems the wild spending government has caused us. Remember also he called them “fat cats” on national TV one day and sat down in the White House with them the next day to work out their wish list with them and make sure the federal government didn’t miss any wants and wishes these “fat cats” might want and wish for.
This article is all about the gift the bankers were handed by the House of Representatives thru their very own Jolly Old Elf Barney Frank while at the same time trying to divert your anger from the real culprits (the President and Congress) over to the financial institutions or Wall Street and promising that this bill would put the reigns on these greedy mavericks. Wall Street bankers are NOT the Culprits! YES they are all about making money and YES they will take any hand out the government wants to give them, but Wall Street is also about making money for you too. Wall Street bankers provide the money from investors to open the businesses and factories to give people jobs so they too can get their hands on some money. With out Wall Street bankers there would be no jobs and no money for We the People. The government on the other hand does nothing but take our money from us. Remember that: Wall Street= good Government spending= bad.
And as far as regulations go Wall Street bankers are the most regulated business in the country; perhaps even the world. The Financial Melt Down and Mortgage Crisis were directly related to the machinations of Barney Frank and Chris Dodd. Senator Chris Dodd is not running for reelection after 30 years in Washington because he wants to “spend more time with his family”. He is not running again because the people in his state have finally caught on to him and his thievery and lying and cheating. He knows he can not be reelected this time around. Now if the people in the Boston district will only catch on to what their representative Barney Frank has been doing to the country!
Anyhow here is a brief look at the gift old Barney gave his banker friends for all their nice campaign gifts to him and his.
…..H.R. 4173, the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders. I quickly discovered why members of Congress rarely read legislation like this. At 1,279 pages, the “Wall Street Reform and Consumer Protection Act” is a real slog.
Here are some of the nuggets I gleaned from days spent reading Frank’s handiwork:
— For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Admitting you have a problem, as any 12- stepper knows, is the crucial first step toward recovery.
— Instead, it supports the biggest banks. It authorizes Federal Reserve banks to provide as much as $4 trillion in emergency funding the next time Wall Street crashes. (read that carefully: that is $4 TRILLION) So much for “no-more-bailouts” talk. That is more than twice what the Fed pumped into markets this time around. The size of the fund makes the bribes in the Senate’s health-care bill look minuscule.
— Oh, hold on, the Federal Reserve and Treasury Secretary can’t authorize these funds unless “there is at least a 99 percent likelihood that all funds and interest will be paid back.” (we all know about how accurate Washington is as predicting the future cost and pay back of things don’t we?!?) Too bad the same models used to foresee the housing meltdown probably will be used to predict this likelihood as well.
— The bill also allows the government, in a crisis, to back financial firms’ debts. Bondholders can sleep easy — there are more bailouts to come.
— The legislation does create a council of regulators to spot risks to the financial system and big financial firms. Unfortunately this group is made up of folks who missed the problems that led to the current crisis.
— Don’t worry, this time regulators will have better tools. Six months after being created, the council will report to Congress on “whether setting up an electronic database” would be a help. Maybe they’ll even get to use that Internet thingy.
— This group, among its many powers, can restrict the ability of a financial firm to trade for its own account. Perhaps this section should be entitled, “Yes, Goldman Sachs Group Inc., we’re looking at you.”
— The bill also allows regulators to “prohibit any incentive-based payment arrangement.” (this is something like working on commission where if you don’t sell then you don’t make any money. It kinda makes it necessary for people to overlook being totally honest when trying to sell something if the truth is likely to lose them a sale and a commission. It is the kind of set up that has real estate people in Florida referring to cyprus trees that only grow in water to Florida Oaks.)) In other words, banker bonuses are still in play. Maybe Bank of America Corp. and Citigroup Inc. shouldn’t have rushed to pay back Troubled Asset Relief Program funds.
— The bill kills the Office of Thrift Supervision, a toothless watchdog. Well, kill may be too strong a word. That agency and its employees will be folded into the Office of the Comptroller of the Currency. Further proof that government never really disappears.
— Since Congress isn’t cutting jobs, why not add a few more. The bill calls for more than a dozen agencies to create a position called “Director of Minority and Women Inclusion.” People in these new posts will be presidential appointees. I thought too-big-to-fail banks were the pressing issue. Turns out it’s diversity, and patronage.
— Not that the House is entirely sure of what the issues are, at least judging by the two dozen or so studies the bill authorizes. About a quarter of them relate to credit-rating companies, an area in which the legislation falls short of meaningful change. Sadly, these studies don’t tackle tough questions like whether we should just do away with ratings altogether. Here’s a tip: Do the studies, then write the legislation.
— The bill isn’t all bad, though. It creates a new Consumer Financial Protection Agency, the brainchild of Elizabeth Warren, currently head of a panel overseeing TARP. And the first director gets the cool job of designing a seal for the new agency. My suggestion: Warren riding a fiery chariot while hurling lightning bolts at Federal Reserve Chairman Ben Bernanke.
— Best of all, the bill contains a provision that, in the event of another government request for emergency aid to prop up the financial system, debate in Congress be limited to just 10 hours. ( What ever is done please don’t allow the congress too much time to maybe figure out just what is needed or what is wrong with the request!) Anything that can get Congress to shut up can’t be all bad.
Even better would be if legislators actually tackle the real issues stemming from the financial crisis, end bailouts and, for the sake of my eyes, write far, far shorter bills.
See also: American thinker article Ending Corruption in Washington