Thread: Wall St. Reform Approved

An all-night House-Senate conference committee delivered President Barack Obama and Democrats a far-reaching and historic achievement Friday – a realignment of the rules that govern Wall Street

The compromise bill now goes to the House and Senate for approval. For all the messiness of the process, financial reform and March’s health care reform win cumulatively make clear Obama and Democrats are governing in consequential ways – and once again Friday, without a single Republican vote.

it left no doubt about the mark Obama has left on his twin Democratic majorities in Congress – reluctant, even recalcitrant at times, but in the end, doing his bidding to remake two of the most important sectors of the U.S. economy.

His hoped-for third act – a wide-ranging climate change and energy bill – is next on Obama’s docket

negotiators agreed to impose the so-called “Volcker rule” that blocks banks from making trades with their own cash – though with a compromise that softened the blow by allowing banks to make modest investments in hedge funds and private equity firms.

Republicans howled over another 11th-hour fix – the addition of a new tax on banks and big hedge funds to raise $19 billion to pay for the bill

Read more: House-Senate conference approves Wall Street reform - Carrie Budoff Brown and Meredith Shiner - POLITICO.com


still has to go to a vote in the house and senate, but it looks like another massive legislative victory for obama.

more from marketwatch.com

The mammoth legislative package, hammered out in marathon Capitol Hill negotiations that carried through the night, gives the Obama administration a significant triumph in its efforts to rein in Wall Street after a financial crisis drove the economy to the brink in September 2008.

It requires "too-big-to-fail" banks to install new capital and leverage limits, instructs the government to conduct unprecedented on-going audits of the Federal Reserve's lending programs, as well as a one-time audit of its emergency response programs.

Also included in the sweeping package, is a tough "Volcker rule" -- named for former Fed chief Paul Volcker -- that would limit insured banks' speculative proprietary trading activities.

The controversial proposal would also force big banks to divest their major interests in hedge funds and private equity firms, allowing them to hold no more than 3% of a fund's capital, though big banks could have as long as seven years to comply.

In a statement, Treasury Secretary Tim Geithner called the legislation "strong."

"It establishes the greatest consumer financial protections in American history. It prevents financial firms from taking risks that will threaten the economy. And it provides the government with significant new tools to better protect taxpayers from the damage of future financial crises," he said.

House-Senate panel OKs sweeping big bank reform - MarketWatch

It's about time . . . weak regulation, or regulation without enforcement simply doesn't work. There has to be a framework of checks and balances to ensure the system doesn't implode . . . QED

you should see the WSJ forum, they are all going mad about it

I think the regulations didn't go far enough, banks should be limited to making loans, periods, not proprietary trading

Originally Posted by Butterfly

you should see the WSJ forum, they are all going mad about it

I can imagine they are. Screw up big time, get massive amounts of taxpayer money and are now all crying how unfair the system is.

^ they are the usual Jet like Faux minions, crying how everything is going to shit and American has lost it to the communist, it's hilarious

let me do a copy/paste of a long insane rant from a Faux fan,

interesting

Barney Frank, Christopher Dodd, Ben Bernanke and Timothy Geithner are ALL known Liars, Cheats, and Thieves. Their partners in Crime are Obama and any other members of Our Congress, Senate or other “public servant” employees that approves of any legislation Other then the Complete and Total Audit of The Federal Reserve. The Fed MUST End!

It was realized that the “BANKSTERS” would have to become PARTNERS with the POLITITIANS and that the STRUCTURE of the CARTEL would have to be a CENTRAL BANK. (The beginning of The Federal Reserve in 1913)

“Few men have virtue to withstand the highest bidder.” –George Washington

The Completely Corrupt Federal Reserve Bank is the cause of most of the problems of Our Great U.S.A. The Fed is nothing more than a huge leech sucking the lifeblood out of U.S.

“Controlling of the quantity of national money is THE most important political question humans can ponder. Freedom cannot long survive when bankers are in control of the quantity of a nation's money. Their debt money system is THE cause of most of the bad things in this world; war, poverty, hunger, misery.” --Bill Still

The Only Real Financial Crisis of the U.S.A. is Hiding in the Complete and Total Audit of The Federal Reserve.

“We the People” do not need International Banking Cartels as partners. They bring nothing to the table, take No risk and we pay them. They need to “Take a Hike!”

“We the People” pay Over 700 Billion Dollars a Year in Interest on OUR money created as Debt – Out of Thin Air. For What?

These deadbeats now have Power and Control over U.S. and Most Other Nations. These freeloaders can no longer be tolerated.

“Hit the Road Jack!”

Our God given Freedoms and Liberties are non-negotiable and strictly protected by Our Beloved Constitution. “We the People” are the True and Righteous Rulers of the U.S.A. Total Power and Control belongs to “We the People.” Our government “public servant” employee’s work for U.S..

Our government is merely a tool to serve U.S..

“The people are the only legitimate fountain of power, and it is from them that the constitutional charter, under which the several branches of government hold their power, is derived.” -James Madison

These International Banking Cartels have used OUR stolen wealth to almost completely corrupt most of Our entrusted government employees. They have corrupted governments World-Wide. Shame on them! This complete lack of Integrity and Honor can no-longer be tolerated.

There are not that many of them and they are Known. Should the People of the World implant RFID “Chips” in them for 24/7 monitoring?

Read this next paragraph to fully understand the heart of our Unsuccessful and Completely Exposed enemies:

“Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the government of these United States and the people of the United States out of enough money to pay the Nation’s debt. The depredations and iniquities of the Fed has cost this country enough money to pay the National debt several times over. These twelve private credit monopolies were deceitfully and disloyally foisted upon this country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia and thus drove a wedge between the Allies in the World War.” –Congressman Louis T. McFadden, Chairman of House Banking Committee 1921 through 1931 (In a speech made before the House in 1934)

“We the People” know who these people are and know who the “shot-callers” are. If they want to target U.S. and our Families, then “We the People” can also play hardball and target them all right back, anywhere in the World as International Terrorists.

Complete Accountability to “We the People” who hold the True Power prevents Fraud, Abuse and Corruption. Good government must ALWAYS be kept In Check.

Ron Paul has legislation ready to move forward immediately on a REAL solution.

Audit “The Fed Scam” bills HR 1207 must pass in The House and S 604 must pass in The Senate Immediately! Any Representative or Senator that does not vote in favor of and support these bills OR Tries to “WATER-DOWN” these bills is clearly a Traitor and “Sold Out” the united States of America!

We don’t need to just Audit the Federal Reserve:

WE NEED TO CUT OFF ITS UGLY HEAD ONCE AND FOR ALL!

NO MORE COMPROMISES!

they are all posting shit from their blog

By Paul E. Vallely

The Declaration of Independence states: “To secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to affect their Safety and Happiness.”

We cannot permit the current leaders in the White House and Halls of Congress to continue in their efforts to lead us down the road of Progressive Socialism and destruction of America. This is the current battle that we Constitutionalists face and we must be aggressive in our efforts.

Incompetence, Deceit, Fraud, Corruption, Dishonesty and Violation of the US Constitution and oaths of office of officials now come into play as relates to our National Character, National Security, Economy and the Nation’s well-being and is the rationale for resignations. Demand Resignation of derelict officials by the people of this country in now required.

Where is our Moral Compass?

The oath of office is simple and reads:

“I do solemnly swear that I will support and defend the Constitution of the United States against all enemies, foreign and domestic, that I will bear true faith and allegiance to the same, that I take this obligation freely, without any mental reservation or purpose of evasion, and that I will faithfully discharge the duties of the office on which I am about to enter: So help me God.”

Sadly, we have seen them violate their oath. Fraud, lying, and corruption are rampant and some have engaged in treasonous activities, and they effectively thumb their noses at us and have sold you to the highest bidder.

The Articles of Confederation were replaced with the Constitution, which granted the federal government enough authority to cultivate, promote and secure the Blessings of Liberty. The balance of authority and individual liberty was understood. Power was confined to that which was enumerated in the Constitution with a certain and meaningful intent for check and balances.

Lincoln issued this warning in his inaugural address, “Any people anywhere, being inclined and having the power, have the right to rise up and shake off the existing government and form a new one. This is a most valuable and sacred right – a right which we hope and believe is to liberate the world.” Being a representative republic, not a democracy, “rising up” means other than revolution by means of arms. The people must “rise up” from the grass roots across this great country as we think of the greater good of this and future generations. We are limited in the peaceful transfer of power…resignation, death, elections, and impeachment.

“We the People” have had enough. Enough is Enough. The Obama White House and identifiable Members of Congress are now on a progressive socialist, treasonous death march and are bankrupting and weakening the country. We have watched them violate their sacred oath of office. “We, the People” cannot wait for and solely rely on the next round of elections in November of this year. It is now and each day that these public servants must put the citizen’s interests above self-interest by resigning immediately.

Our so-called Representatives and Senators are more interested in party loyalty than performing their duties. So, do not expect them to resign en masse or be impeached. Therefore the “people” must decide. A civil uprising is brewing. We now must call for the immediate resignation of Barry Soetero (AKA President Barack Hussein Obama) …..based on Incompetence, Deceit, Fraud, Corruption, Dishonesty and Violation of the US Oath of Office and the Constitution.

And a call for a National Petition for new elections to select the next President of the United States of America must be initiated. We can wait no longer for a traditional change of Power and New Government.

Published on 06/08/10
Virginia City, Montana, June 5th, 2010
By Paul E. Vallely
The Stand Up America Blog

“We now must call for the immediate resignation of Barry Soetero (AKA President Barack Hussein Obama) …..based on Incompetence, Deceit, Fraud, Corruption, Dishonesty and Violation of the US Oath of Office and the Constitution.” -- Paul E. Vallely

Originally Posted by Butterfly

WE NEED TO CUT OFF ITS UGLY HEAD ONCE AND FOR ALL! NO MORE COMPROMISES!

Guess the Wall Street types need to join up with the tea party folks opposed to spending tax payer money to bail out Wall Street. Should be quite a sight.

If they hadn't softened or gotten rid of the regulations put in after ths 30's this crisis would not have happened, now they are trying to close the door after the horses got out, people, particularly politicians just like to ignore history.
Remember Roman money depreciated like the currency today, hense the word debase.

Originally Posted by panama hat

It's about time . . . weak regulation, or regulation without enforcement simply doesn't work. There has to be a framework of checks and balances to ensure the system doesn't implode . . . QED

This regulation is bullshit. The market does not need more regulation, it needs less intervention. The moral hazard caused by Fanny Mae and Freddie Mac and the Fed set interest rates is what caused the financial crisis.

Do you think a regular bank would be dumb enough to co-sign anyones mortgage ?

Originally Posted by Butterfly

^ they are the usual Jet like Faux minions, crying how everything is going to shit and American has lost it to the communist, it's hilarious

let me do a copy/paste of a long insane rant from a Faux fan,

This regulation has been crafted by the banks themselves, don't fall in love with your captors.

Originally Posted by socal

This regulation is bullshit. The market does not need more regulation, it needs less intervention. The moral hazard caused by Fanny Mae and Freddie Mac and the Fed set interest rates is what caused the financial crisis.

spoken like your typical Faux and WSJ drone

Originally Posted by socal

Do you think a regular bank would be dumb enough to co-sign anyones mortgage ?

Yes

Bank stocks soar on financial regulation agreement


Bank stocks shot higher Friday after an agreement on a financial regulation bill reassured investors that new rules won't devastate financial companies' profits.
Banks outdistanced the rest of the market after congressional negotiators agreed on a bill that increases the regulation of financial companies, but that doesn't include some of the harshest provisions that the government originally proposed. The legislation imposes new rules on the complex investments known as derivates, but the rules aren't as strict as investors feared.
It also includes a far milder version of what's been called the Volcker rule. That rule, named after former Federal Reserve Chairman Paul Volcker, would have banned commercial banks from trading simply to increase their profits, a practice known as proprietary trading.
Analysts said the deal removes a huge cloud that has hovered over the financial industry for much of this year. Investors have feared that intense regulation would devastate bank profits. Now, the market seems to believe that financial companies would do well even with the new limits on their business.
"They come out of this big-time winners," Bob Froehlich, senior managing director at Hartford Financial Services, said of financial companies. "Two years later, people will look back and say 'My gosh, nothing really changed.'"

The Associated Press: Bank stocks soar on financial regulation agreement


I hope the last statement is wrong. Anyway, forget the rhetoric- Wall St has spoken, and the financial regulation bill is hardly draconian. They're relieved about it.

In retrospect, allowing the financial sector to become so opaque and deregulated was really dumb. It is an industry sector so vital to the workings of our economy that literally, when the shit hit the fan, they had us by the short n curlies- there was no choice but to save them. Entirely by their own short sighted greed and recklessness too. Never again (fingers crossed).

The British and the French are applying a special tax for banks, and banning them from proprietary trading or doing "offshore" investment

Originally Posted by sabang

Bank stocks soar on financial regulation agreement

Well, if the banks like it, that probably means it's good news for all the ordinary people who've lost their jobs and homes.

In the end it's just another piece of socialist trash passed through committee on straight party lines. House negotiators voted a party line 20-11 in favor of the final agreement - senators voted 7-5.

I think having bailed their collective arses out once (more than once in reality), the people should have some ability to prevent them ever bringing our economies down again booner.

And when you look at other sizable financial crises-
The Savings n Loan scandal,
The Third World debt crisis- Bank of America and Citi had to be bailed out,
Lloyds of London
and many others

The ability of the Financial sector to 'regulate itself' is clearly not established. It was silly of us to ever think it was.

Originally Posted by sabang

The ability of the Financial sector to 'regulate itself' is clearly not established. It was silly of us to ever think it was.

Precisely, more regulation is needed, not less and certainly not self-regulation

Originally Posted by Norton

Originally Posted by Butterfly

you should see the WSJ forum, they are all going mad about it

I can imagine they are. Screw up big time, get massive amounts of taxpayer money and are now all crying how unfair the system is.

That's part of it, but the elite in all countries think that laws are only for poor people. Sadly all too often they are right.

Originally Posted by sabang

Bank stocks soar on financial regulation agreement
Bank stocks shot higher Friday after an agreement on a financial regulation bill reassured investors that new rules won't devastate financial companies' profits. ..... "They come out of this big-time winners," Bob Froehlich, senior managing director at Hartford Financial Services, said of financial companies. "Two years later, people will look back and say 'My gosh, nothing really changed.'"

Isn't it a little curious that the hospital/medical insurance stocks soared after medical care reform and the banking stocks soared after financial reform? Our TD posters who accuse Obama of being a Marxist will certainly be hard-pressed to explain why big business responds favorably to these 'Marxist' reforms. On the other hand, the brainwashed Foxbots have no capacity for independent, critical thinking so why even challenge them to answer such a basic question?

Originally Posted by socal

The moral hazard caused by Fanny Mae and Freddie Mac and the Fed set interest rates is what caused the financial crisis.
Do you think a regular bank would be dumb enough to co-sign anyones mortgage?

True. Prepare for attacks by the lefties, socal.

Originally Posted by sabang

Bank stocks soar on financial regulation agreement

Yep. You know why? Coz most of this crap will crush the smaller banks, pushing more customers to the big ones. And guess what? You know who will pay so the banks will continue to profit? The tax-paying customers. New service fees for bank accounts, chequing, ATM use...stupid libbies are bashing the People once again.

Oh, and didn't Dodd say that they didn't know what's in the bill, but everyone will know once it is passed? Sure, it was just a gimmick so bamboy had something to take to the G20 summit. Problem is, the G8 leaders ain't falling for it.

^ What a load of politicised rubbish, presented in the form of a 16-year old. I know people speak colloquially, but to write colloquially?

I'm tired of reading that everything is attributable to 'libbies' and 'Obama', it shows a small intellect and blind following of dogma.

So, the stocks go up . . . that's a bad thing if under a Democratic leadership
. . . the stocks go down . . . that's definitely a bad thing and doubly so under a Democratic leadership.

Quite tedious, actually . . . please move to Issues so they can play in their own sandbox