Reports surfacing this morning have regulatory reform legislation inching closer to reality. The New York Times is reporting that regulatory reform is gaining “traction.”
So what will the eventual legislation look like? Reading between the lines, here’s what can be expected:
- Treasury will lead the proposed systemic risk council, with the Federal Reserve only taking a subordinate role;
- The proposed Consumer Financial Protection Agency will end up being a subsidiary of another, existing agency — the fight for a standalone enforcement bureau appears to have been lost; and
- The Volcker Rule will be watered down to exempt hedging activities.
Rather than compromise, I’d call this capitulation by the Obama administration. Tack financial regulation on to the list of legislative failures for the administration.
Hi JJ (and colleagues on Bankinnovation),
Thanks for sending this. These agencies were to do their jobs. I suggest criminal trials of all higher levels of ‘management’ among all the financial regulatory agencies over the last 15 years and then sentences to white collar prisons for the guilty. WE’ve needed this ‘inquest’ rather than propose eliminating agencies and burying the evidence of their guilt. This protects the miscreants and how they pulled off their heists, because in hiding the crimes and the full disclosure without due process, you’re setting up future enrons. Enron’s real crimes also included Phil Gramm having his power to get a pass for teh ‘energy’ trading and derivatives, with his wife former CFTC charm, chinese fascist wendy gramm on enron’s board, but the breaking of the walls in the system also by Bob Ruben obtaining in the Commodity futures modernizaiton act legislation the exceptions for teh derivatives trading. These are the financial toxic weapons of mass destruction. So although the OTS is yet another part of the same problem, investgating, fully disclosing the abuse of power and the conflicts of interest this agency encounters under the executive branch – and I’ve urged removing the OCC and OTS from the Treasury department and putting them under the FDIC or subjected them completely to me – a committee of experts who both understand the system and know where, when and how the abuses are achieved and prevented. But the Lord can stop tsunamis and this corruption too isnt more power than His Order.
Meanwhile, if anyone with more than 20 years of experience in dealing with financial institutions who’d known some or a fair amount of the legislation framing the financial system, had read through on what the House had voted, and heard what the Senate also had produced…. it occured to me about what pathetic pieces of excrement these are. And what the House version didnt have, the Senate version did. and ‘conciliation’? committee? the process after the House and Senate vote on their respective versions and then since the versions are quite different, there is this deliberation by a special committee to contrive something that gets an up or down vote, or goes directly to the president for sigature, which he either signs or rejects. The system has so plundered the voters,b ut this guy needs to noisey reject what may be put in front of him . He’s a piece of spineless and craven slime matter so, except by the grace of God, will we get justice where he loudly rejects what pathetic piece of garbage will be presented to him… and then repeal the commodity futures modernization legislation that gave OTC derivatives the power to trade returning them to their former bilateral, but forced transparency and capital requirements.
Consider these dont really net or offset like a stock wash trade. The ‘netted’ positions are open positions for which the banks have insufficient capital to protect. Aside from the banks having bankrupted themselves, banks’ remaining capital is allocated to functioning businesses.
The banks have bankrupted themselves first with their nonperforming asset stuffed structured finance, then their OTC derivatives many which dont have cashflow until a triggering event, these too need to be cease and desisted.
People got wealthy on the Rothschild way of compound interest. So let’s repair to block and tackle commercial banking. Perhaps Rothschild wanted to sucker people into that because the Rothschilds also were behind central banks that can inflate the money supply, crippling the benefits of compound interest. But bank management controls the cash, so it’s he who controls the cash that gets away with the bank, not the owners or the debtors.
Anyone who understands the difference between ad hoc ‘government’ and the one the founders left us – more mature people who had a better idea about checks and balances and the abuse of power, the later isnt what the House and Senate produced.
While i’ve been ‘chewing’ away on the House version, i’ve been shocked, and not the shock and awe of the ‘terrorism’ although the subtle terrorism of sorts of the tyranny of the creeping and now blatant corruption that was vomited on us, but also more the shock of just to what degree they’ve more than ruminated to lurch yet more into a system where the Treasury Secretary and the Executive branch has annointed, opaque and discretionary power over the system and the people.
This is a form of treason. And it also means anyone with off-the-radar screen power has power over what is ‘on-the-record’.
Tyranny comes to mind. Let’s understand what this is. Let’s watch the demand for that by people who’ve bought access to enjoy that by way of fools? among our elected public servants or compromised by campaign contributions into the campaigns of our electeds.
And it takes time to enumerate the prolific number of idiotic and craven demands for more self interest rising to the degree of protection under federal legislation for the BigFinancials and their campaign contribution recipients, or among the electeds hoping for some future lucrative employment controlled by the BigFinancials.
And then there’s something even more evil. Recently I stumbled on the agenda and effectuation of the interests of the illuminists, which enjoy their power through and count on the enforcement using our intelligence apparatus. It has the power over our elected and administrative government. And it’s sick. High profile, powerful electeds. Appointees who had both power and profile. very disturbing.