The last few days have seen flourish of activity on the Federal level.
After Brown's election in Massachusetts, Obama instantly put forward a proposal to impose regulations on banking. Obama is doing this for political reasons, he needs to stop Democratic Party election hemorrhaging. This is a tourniquet application.
We are in the process of learning the details and hearing the complaints. Wall Street complained bitterly on Thursday by tanking the DOW over 200 points. That's a lot of points.
We also need to be aware of the new Supreme Court ruling that will open up campaign contributions to corporations and such.
The banking regulation move is tricky but needed. The deregulation of corporate campaign funding is horrible. This is one of the very worst decisions to come down the pike and will have grave consequences on our future elections. If you thought that a candidate had to have wealth and influence before, the future via the Supreme Court will bring wave upon wave of in the corporate pocket candidates.
This is a terrible decision, we are a mortally wounded country.
White House: President Obama Calls for New Restrictions on Size and Scope of Financial Institutions to Rein in Excesses and Protect Taxpayers
“While the financial system is far stronger today than it was a year one year ago, it is still operating under the exact same rules that led to its near collapse,” said President Barack Obama. “My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout. It is exactly this kind of irresponsibility that makes clear reform is necessary.”McClatchy: Obama moves to restrict banks, takes on Wall Street
The proposal would:
1. Limit the Scope - The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit.
2. Limit the Size - The President also announced a new proposal to limit the consolidation of our financial sector. The President’s proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms, to supplement existing caps on the market share of deposits.
"When you put a system of regulation in place, they (Wall Street) figure out ways to get around it. It's an invitation to change corporate structures that may move stuff more off the radar screen," Vincent Reinhart, a former top economist at the Federal Reserve, said of the proposed prohibition on hedge-fund activity by banks.
3 comments:
Better late then Never. The Scotus decision just seals the deal doesn't it? Corporate America and its Int'l branches now own DC . We need to take back this country form the Russell 2000 or be prepared to be serfs. Corp. rule IMO will eventually lead to a kind of neo-feudalism. No rules or laws for the wealthy and their Corp. super persons and the opposite for the serfs they rule. Were already a good way along this path and if we are going to maintain any kind of democracy we need to fig. out a way to fight back against this tiny minority ( the 2%).
Its interesting as I'm reading your comment it occurs that all the endless corporate hoops and hurdles that we go through every day just to talk to somebody say in the utilities company, is all part of that re-classification of our society. Yeah its feudal, it sucks.
You don't get to just talk to the Lords of the Castle. They've put endless layers of functionaries and lackeys between us and them.
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