Financial Reform: Will We Even Have A Debate?

The Baseline Scenario:

The New York Times reports that financial reform is the next top priority for Democrats. Barney Frank, fresh from meeting with the president, sends a promising signal,

There are going to be death panels enacted by the Congress this year -- but they're death panels for large financial institutions that can't make it," he said. "We're going to put them to death and we're not going to do very much for their heirs. We will do the minimum that's needed to keep this from spiraling into a broader problem.

But there is another, much less positive interpretation regarding what is now developing in the Senate. The indications are that some version of the Dodd bill will be presented to Democrats and Republicans alike as a fait accompli - this is what we are going to do, so are you with us or against us in the final recorded vote? And, whatever you do - they say to the Democrats - don't rock the boat with any strengthening amendments.

Read the whole story: The Baseline Scenario

Comments

[lvdragonlady]

05:09 PM on 03/25/2010

You have to have 2 sides to have a debate and we all know that we only have the party of 'no' and they do not discuss anything just demand that you do it their way or not at all.

[mrspiffy]

11:46 AM on 03/25/2010

Revive Glass-Stegall...
http://yieldpig.blogspot.com/

[outnow]

09:40 AM on 03/25/2010

Dodd is a joke. Frank is sold out. Obama got most of his campaign money from GS.

The path to reform is by following the money. If the Supreme Court allows unlimited contributions, how about a corporate three strikes law?

Most corporations would lose the right to vote like other convicted felons.

40% of all profits in our economy are manufactured on Wall Street by changing the accounting rules to create profits where none exist. Derivatives and credit default swaps hide the bad loans.

Dodd and Frank will change none of this accounting fraud nor its executive compensation arrangements where CEOs are rewarding themselves by creating huge bonuses to loot the companies and get bailouts.

Most people realize the extent of the fraud and want to stop it but the politicians are unable to take their own hands out of the cookie jar.

[clsez]

09:33 AM on 03/25/2010

If there ever was an issue or a time to regulate, it is financial reform, and the time is now. No part of the electorate likes wall street and I am sure we could get even tougher laws than Glass-Steagall did. Even Republicans cannot defend going easy on the financial sector that brought us the big mess we are in. Dodd, on the other hand is going easy on the sector so he can leave the senate and cash in.

DODD, bring back CFPA and go beyond Glass-Steagall NOW.

This PBS Frontline piece should be the guide
http://www.pbs.org/wgbh/pages/frontline/warning/?utm_campaign=homepage&utm_medium=proglist&utm_source=proglist

[TRichards]

09:13 AM on 03/25/2010

What isn't clear to me from the article is whether the alleged shortcomings of the bill can not be added by further bills. No bill in the history of the Congress covered all that it could. To my understanding, nothing stops other congresspeople from offering up further regulatory legislation.

And, let's not forget the overall context. Under Mitch McConnell and John Boehner, the Republicans have a politically strategic policy of ensuring that the Obama administration fails. To the extent that it looks as though it cannot get things done, the voters blame the party "in power" and -- without a helluva lot of discrimination -- votes to "throw the bums out." As the minority party, the Republicans hope to benefit from this.

The max. damage they can do is to vote as a bloc making a nigh impossible 60-vote majority necessary in the Senate. So, politics for the Democrats is forced to become the art of the possible rather than the attainment of perfection.

So, I'd have to see more specifics before going against the only reform bill on the floor. Dodd and the country haven't the time to play Charlie Brown to the Republican Lucy on kicking the football. We may have to bypass their "help" so that something can actually be improved at least somewhat.

[ReMarker]

09:35 AM on 03/25/2010

Well said. Thinks for taking the time to articulate points of reason. I, like many others, have grown tired of even trying to reason with the "Want America to Fail" people.

[maxhardon]

01:21 PM on 03/25/2010

I agree with what you say except for the time part - it has been 18 months since the crash in Sept. 2008.

[what is is]

09:13 AM on 03/25/2010

Investment banking is such a horrific risk pumping affair, it was made illegal after the great depression.

Glaas Steagal gave large buffer to many other risks, like betting for stocks to failed.

Many pseudo split up ma bell smaller banks doing the same things will only spread and hide these problems

[GonzotheRational]

09:11 AM on 03/25/2010

It's amazing that Frank and Dodd seem to be leading this effort. Dodd is resigning is disgrace and Frank allowed Fanny and Freddy to continue their lending practices even though others warned him of the pending problems in our financial institutions. Two dispicable politicians leading an effort behind closed doors without input from the other party. Gee, where have I seen that before????

[ladyearth]

09:08 AM on 03/25/2010

Until Boehner and McConnell put on some big boy pants, grow up, and walk in the shoes of statesmen, there can be no real debate on any legislation in Congress. There is not one Republican in Congress, House or Senate, who has the courage to walk in the shoes of a statesman.

[GonzotheRational]

09:14 AM on 03/25/2010

I think I'm getting sick!!!

[ladyearth]

09:27 AM on 03/25/2010

I know, dear one, the Republicans make me sick, too.

[lesterbud]

10:49 AM on 03/25/2010

Very well said.
I would fan you, but already have.

[outnow]

09:00 AM on 03/25/2010

Change who's running the Fed. Obama must appoint governors who want reform of the executive compensation.

Why are bank CEOs paid to loot the country and the banks?

Systemic fraud in the financial system is now interconnected to the political system.

[lqw]

09:08 AM on 03/25/2010

Obama was bought and paid for by Wall Street
http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

[outnow]

09:17 AM on 03/25/2010

People want change and will vote for the only other party in November 2010 and in 2012.

The Democrats are in a tight corner since they went along with the bailouts and continued too big to fail and executive compensation arrangements where CEOs can loot companies.

When Obama supported Bernanke who didn't see it coming, and appointed Geithner, who helped it along by not regulating, the fix was in for the financial wrecking crew.

Any remaining doubts can be resolved by seeing Larry Summers, the master of deregulation back with his Rubinomics.

Watch William K. Blacks video "How to Rob a country; own a bank."

So Obama faces a dilemma - unless he takes the reform issue on, he will not be re-elected because the Republicans will seize the opportunity.

[Tom Joad]

08:59 AM on 03/25/2010

"Ok, ok, ok...that HCR 'Waterloo' hoopla didn't go so well for us. But this...THIS will be Obama's LITTLE BIGHORN!..." - The Republiban

[Stencil]

08:54 AM on 03/25/2010

Finally, a financial reform bill the US people deserve.

[lqw]

08:49 AM on 03/25/2010

Goldman Sachs one of Obama's top campaign contributers.
http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

[bthechangeyouseek]

11:23 AM on 03/25/2010

What are you trying say?

[PragmaticStatistic]

08:45 AM on 03/25/2010

Separating the lines of business will certainly help. However, the derivative network is the bigger problem. Without limiting and regulating derivatives there can be no meaningful reform of the too-big-to-fails. As long as we continue to allow them hedge their credit default swap bets on bank risk as bundled investments, and maintain an integrated worldwide network of shared risk securities, we will never be able to stop the bankers and the wealthy from corrupting the economy and taking control of governments.

[RomeoMD25]

08:33 AM on 03/25/2010

The global warming scam passed by Congress. Goldman Sachs is in the middle of it, as usual– a potential trillion dollar sure thing.

And Former Vice President Al Gore who will profit from the cap-and-trade plan through his company, Generation Investment Management,–
Gore is joined by three former Goldman Sachs heads in their carbon offsets business.

http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine/7

Obama wont bite the hand that feeds? him...and by "the hand" i mean the bankers

What do you think? Will Goldman Sachs and other banks involved in carbon offset trade (they already have an OTC future market set up for this) be able
to impose this global tax, even if AGW has been proved to be a fraud?

[lqw]

08:47 AM on 03/25/2010

You are absolutely right. Obama and the Democrats won't bite the hand that feeds them.

[Countess]

08:29 AM on 03/25/2010

There is big money involved for these senators and congress people so we can expect another weak republican lite bill from the democrats.