Major Doubts Greet Paulson's Plan For Financial Rules Overhaul

New York Times:

As Treasury Secretary Henry M. Paulson Jr. laid out an ambitious plan to overhaul the regulatory apparatus that oversees the nation's financial system on Monday, lawmakers and lobbyists from an array of industries opposed to the plan predicted that most of it would be dead on arrival.

While the plan promotes a long-term goal of reducing an alphabet soup of regulatory agencies, in the shorter run it may actually do the opposite. One of the blueprint's few short-term goals is the creation of a mortgage commission that would set new minimum standards for mortgage brokers and otherwise unregulated financial institutions that sell mortgages. The new commission could be formed only by Congress, and some lawmakers predicted it might be adopted this year.

Read the whole story: New York Times

Comments

[BCr8]

I think you may well be right. William Murchison just published a column where he defends the free market approach. But he argues that the candidates ought to be discussing the issue. The url is
www.creators.com/opinion/william-murchison.html

[lifeinfullcolor]

The Gramm-Leach-Bliley Act, (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, my question is, did this help bring us to where we are today? I'd like someone to begin to explain how deregulating, allowing these banks to play in all these various financial markets, was and is good for the economy? How is it that everytime there's some form of deregulation, corruption finds it's way into the mix? This is also a bill that President Clinton signed into being, what does Hillary have to say about this?

[holeybuybull]

Thank you Milton Friedman. This is nothing more than another phase of the "Shock Doctrine". The US used to confine the utilization of disaster capitalism to foreign countries. I guess 9/11 was just seen as too much of an opportunity by the Chicago School to not implement their economic policies. It's beginning to feel a lot like Pinochet's Chile, after the CIA's implementation of their 9/11 in 1973.

[cynic]

One of the central points of this plan to destroy effective regulation of the financial markets is to place considerably more power with the Federal Reserve Board.

This is by far the most outrageous of the suggested changes. Bush and his minions truly despise the entire concept of oversight. The members of the Fed are appointed for 7 year terms and it is extremenly difficult to yank them out of their seats of authority. Bush wants to give these people more power and less accountability.

Wow... sounds like a situation ripe for corruption. Gee, think the financial markets might be tempted to subvert the new, all-powerful, unaccountable True Believers that Bush will shove into the Fed???
No wonder it's in Bush's plan.

The shrub sure has a penchant for no accountabi­lity...

[cynic]

This is typical Bushco.

First, de-fund a fully functional agency so as to make it dysfunctional. Loudly complain about the inability of government to do anything effective. Surreptiously create a shadow organization within the administration that is unencumbered by previous law and regulation to nominally regulate, but in actuality give free reign to those subject to regulation. Declare that the current regulations don't work and urge Congress to pass new laws to deregulate. Then reap the profits for (Bush & his cronies) while the public suffers and pays.

The Paulson proposal is a bunch of rearranging the deck chairs on the Titanic, elimination of the very effective pre-Bush SEC, addition of new agencies that won't do anything, and effectively giving the purveyors of the wreckless mortgage-based derivatives and other extraordinarily dubious and unregulated securities a free reign to continue raping the American public of their hard earned dollars.

Major doubts???

This thing is Dead On Arrival.

quack, limp
quack, limp
quack, limp
quack, limp
quack, limp

Sounds like a Lame Duck to me...

[Irons]

Paulson always looks like he's sniffing an armpit.

[paixa3]

Kudos to Huffpost. The photo is better than a Mastercard advert. Pricelsss.

Keep up with the 3 stooges photos. I need some humour in my life. BRAVO.

[andyboy]

Paulson: “Some may view these recommendations as a response to the circumstances of the day,” Mr. Paulson said. “That is not how they are intended.”

That was a good one.....

"Hey, don't get any fancy ideas like we are responding to any actual events of the day that concern something real. This is all strictly window-dressing. Consolidating power under the banner of the FED is such a great idea anyhoo.We were gonna do that anyway. Just like the Nazi's"

I wonder if these people have any idea how full of shit they are?

[joebaggadonuts]

I agree with this Huffpo poster: http://www.huffingtonpost.com/ian-welsh/the-paulson-plan-doing-w_b_94378.html

This plan is just another in a long line of convenient usurpations of power from the citizens, done at a time that is convenient for them. They have been planning this. As Krugman points out it does NOTHING to resolve the actual problems. From his point of view it's a Dilbert company solution, doomed to fail. I think it's more sinister than that. Read the article at the link above.

[cabgx2]

CYA. Bush has driven the economy into the shitter. Now he wants to at least say that he had a plan, and congress did not pass it.

[Bobby]

Hell of a job Paulson!

[NelsonR]

I cannot conceive what is worse, the actions of Bernanke making saving money a joke in the U.S. or Paulson's obvious bias's for his past associates and tenure on Wall Street. If ever a saying applied, Paulson IS the Fox guarding the chicken house. Sort of like, when Bush retires (Thank God) and the next President appoints him as Good will Ambassador to the world.

[cynic]

It's not just Bernanke who's to blame. Greenspan is just as culpable.
Greenspan is the yahoo who gave his imperious seal of approval for the Bush tax cuts

[cynic]

No. Not Good Will Ambassador.

Little Georgie won't dare leave US soil. He'll be under indictment for War Crimes by the International Criminal Court in the Hague.

[WIpatriot]

What balls Paulson has to actually stand up at the podium and deliver this steamy pile!

[BPCentrisAmerican]

HuffPost's Pick

I live in a small politcaly moderate state, with a population of 31 million people, that’s a hell of tax base yet our roads are falling apart, one of major military bases is being shut down, our school system which used to be in the top 5 in country is under pressure, and yet a bunch of corrupt ignorant Bible thumbing Southerners call us socialist. I’m tired of this nonsense that irrespirable homeowners created this melt down, when Greenspan dropped the prime though the floor encouraging barrowing and driving housing prices though the roof along with property tax assessments. I am tired of the “Alice in Wonderland” Bush administration pouring hundred of billions of dollars into Iraq with dubious results, ignoring the will of more than 70% of the American people yet our fearless chicken hawk VP response is SO. I’m really tired of George Bush’s neo-con happy talk cloaked in religious code.

I am a responsible home owner, I live in a modest 3 bedroom 1,600 square, 60 year old Cap Cod in a established neoborghood, I put down 35% on my home, I drive a fuel efficient car, yet I am getting killed with exploding property taxes, a 300% increase in heating cost, in fact every bill I pay is up by at least 30%, and some yahoo, my taxes support, calls C-Span and refers to people like me as socialist and communist, because I want my government to work for me again.

[cynic]

That yahoo sounds like a totalitarian proto-fascist to me.
How dare those people get on their hypocritical self-righteous high-horse and try to label responsible citizens as traitors.

I am conservative by nature, but I am definitely NOT a political conservative. I am a political LIBERAL. Yay Liberals!!!

[knowhelpnow]

I believe the Federal Reserve has to go, it was created by people that have no common sense. Why would our government give to a private entity the power it has over our country. We need to take back our ability to control our own money. This whole Federal Reserve has gotten out of hand the last thing we need is to give them more power over our country.

[WIpatriot]

Doubts? There are doubts? I don't have any steenkin' doubts.


It sucks. It's a pure give away. Paulsen should be run out of town for trying to make this pig fly.