House Financial Reform Bill-Not Reform

[AllentownJake]

http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ

Nuggets Gleaned

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. 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.” Too bad the same models used to foresee the housing meltdown probably will be used to predict this likelihood as well.

More Bailouts

-- 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.


----Bill is BULLSHIT-----

[msongs]

1. at least nobody from goldman sachs is in government helping run the place lolol nt

[AllentownJake]

2. I openly question why I vote these days

When I see democrats on TV spouting absolute horseshit, my reaction is quickly becoming equal to republicans in 2002 and forward. The only thing positive I can say is, they aren't as bad as the republicans, they still really suck though.

[DJ13]

3. I think this sign was on the doors to Congress over the holidays

[Nikki Stone1]

4. This is a travesty.

Another direct transfer of taxpayer money to Wall Street. Matt Taibbi warned us about this.

[Greyhound]

5. K&R.

[neverforget]

6. Another reason to get the money out of politics.....

[w4rma]

7. I expected nothing less from Barney Frank. He's in the banksters' pockets as much as any Repuke. nt

[amborin]

8. KNR

[inna]

9. Fascinating read here:

http://jessescrossroadscafe.blogspot.com/2010/01/is-us-goverment-preparing-lifeboats-for.html