Very important detail in the presidents proposal for financial regulation

[TheCoxwain]

Snip from NY times article


The plan would impose tighter rules on banks that package and sell securities that are backed by mortgages and other debt. It would require that companies that issue mortgages retain at least 5 percent of them on their books to discourage companies from marketing unsuitable loans.


So bank will not have the incentive to make and sell loans and make profits on the fee .... This is FANTASTIC ...... IMHO


This simple rule would have prevented the mess we are in right now... What a shame that some one did not act earlier!


But will this detail survive the wheeling and dealing in congress before it reaches the Obama's Desk.



You can read the full article here ..

http://www.nytimes.com/2009/06/18/business/18regulate.html?hp

[SpiralHawk]

1. "How perfectly un-Republicon. Sneer." - Rush 'DraftDodger' Limbaugh (R - Leader)