How The Banks Plotted To Fight Off Regulatory Overhaul

New York Times:

As the financial crisis entered one of its darkest phases in October, a handful of the nation's largest banks began holding daily telephone sessions. Murmurs were already emanating from Washington about the need for a wide-ranging regulatory overhaul, and Wall Street executives girded for a fight.

Read the whole story: New York Times

Comments

[ReedYoung]

Proof positive that corporations must never again be allowed to participate in any way in the lawmaking process. Prohibit all corporate donations to politics, including all "non-profits" which are active in politics, or individual rights are finished.

[VS007]

Shame on these banks!
They take our money and now want no one to look over their shoulders so they can make merry.

[TJCole]

Geithner is no better than the rest of these swine banksters...

[jeffp26]

That's what we get for keeping these people afloat.

Too big to fail is pure unadulterated BS.

[kathy001]

Unregulated credit-default swaps and derivitaves have proven to be lethal to the economy. If any other product had been proven lethal to consumers they would immediately have been taken off the shelves, production would have been halted, investigations would have been instigated and criminal charges would be on the table.

We need to slap the banks down - good and hard. They have proven, in no uncertain terms, that they can not be trusted to regulate themselves. I'm simply aghast that this is even still an open issue. There is simply no room for argument - the banks must be regulated and must operate under extensive oversight.

[ReedYoung]

Indeed, there is no room for compromise on re-regulating finance. When rule of law is restored, such transfers of wealth will be properly outlawed as fraud and theft and the effort to commit them, as conspiracy.

[serialcoma]

Is there one, just one, banker or other financial "services" executive who doesn't belong in jail?

[bluguy8]

nope

[EasyZee]

Yes there is, just one, and his name is Leonard Abess.

[KHAAANNN]

The "Conservative Mantra";
Privatize Profits, Socialize Losses.

[serialcoma]

co-sign.

[jsgaetano]

Well this is just a typical "Fiscal Conservative" job, isn't it? Take money from the government, and demand no strings dare be attached to it?

[Rich Hosking]

Plotted??

Like they are finished?! Pleeze--wake up!

[ffejretsof]

Here is the simple answer: You don't want regulation fine. However, if you take unwarranted risks, you personally will go to jail and all of your assets will be forfeited to the government. No if's and's or but's. That will keep them in line. As long as the banksters know they wont go to jail or lose their ill-gotten gains there is no incentive for them to do the right thing.

[RoloTomassi]

Well, I have to say that my "faith" in "real change" is strained to the max right now; should we see Wall St. waltz away from this fiasco without any serious constraints placed on derivatives, then I at least will be convinced that the fix is in, and that a similar outcome can be expected for healthcare reform as well.

Such are the wages of bipartisanship and centrism when one full half of the equation has no regard for the well being of the other; negotiating regulation of the financial system with the very people and organizations that need to be regulated--when it is well known that they are not responsible or even sympathetic to those harmed by their irresponsible actions--is utterly absurd, will yield no significant protections against a repeat of this economic idiocy.

There is no excuse for allowing these irresponsible financial congolmerates to go back to business as usual after they've been the primary players in tankng the entire global economy, but I will be pleasantly surprised it that isn't exactly what happens....

[vippy]

I, too, blame the derivatives. They need to be reigned in and I don't see congress take action.
In fact, I read here a week ago that the White House is looking at RELAXING imposed regulations
already. I think we are being railroaded. Do you see congress put a lid on the rising oil prices?
They would not want to shoot themselves in the foot. I am soooo disgusted.

[blood1]

There seems to be a growing consensus, by we the taxpayers, that our concerns about Wall Street Investment Banks will not be heard. Someone, much more clever than I needs to write an intelligent letter that we can send to Congress. I suggest that it be sent to the House of Representatives House on Banking Committee that is headed by Barney Frank...at least he listens! We can add a copy to President Obama...as I do not know if Geithner will acknowledge any of our outrage!

I have nothing against the investment banks making money...but not when I have to pay them when they "mess up".

Treasury is putting us in a "catch-22" situation if they fail to make some true regulatory reform that get's both you and me off the hook for investment banks bad investments.

[leftLibertarian]

These banks should not have received any bailout money from the get go.

[marijam]

If you have money in one of these banks, take it out of the bank and put it in a local, small bank.

[RoloTomassi]

Fair enough, but be sure that you do a little research on the health of said bank; the little guys played in this casino as well, and unlike the big guys, the FDIC is closing them down on an accelerating basis....

Of course the FDIC will hold up its end on insuring deposits up to $250k, but if you don't want the stress and the drama of going through a bank failure, then a little research could saving you all of that mental/emotional hassle.

[Cherubim]

An alternative plan would have been to:

"First, I will create a Family Savings and Credit Commission to make sure that financial services treat families safely.

Right now, there's no sheriff in town. Interest rates were effectively deregulated 20 years ago. States cannot effectively regulate banks because most are based in other states. Federal regulators put bank "soundness" – profitability – far ahead of consumer protection.

My Family Savings and Credit Commission will change this. It will deal with all financial services -- credit cards, mortgages, car loans, check-cashers, payday loans, investment accounts, and more. It will ban the most abusive terms and make sure consumers understand the others.

Second, I will also pass strong national laws protecting us against the worst abuses in credit markets – predatory mortgages – abusive credit card terms – and payday loans with interest rates of 300 percent or higher.

Finally, I will help create alternatives to abusive lenders. I will help working families build up a cushion by matching their savings and bringing bank accounts to the 56 million without them. And I will support non-profit groups offering affordable, short-term loans. We need a new era of responsible lenders who see families as long-term investments, not quick bucks. "

Watch Excerpts from John Edwards' Cooper Union Speech:
http://www.youtube.com/watch?v=sJlKE_BLAUM&feature=PlayList&p=F2D6FD81E12ECD40&playnext=1&playnext_from=PL&index=5

[schatsie]

They are just like the CIGARETTE COMPANY CEOs, Lying their socks off without a clue of a conscience....liers liers liers....and what makes anyone think they will stop lying......

[kathy001]

You're right. And they'll never stop the lying.