Daniel Gross: Senate Reform Bill Is Too Kind To Wall Street

Slate Magazine:

The Senate's passage Thursday night of extensive financial reform is being portrayed as a big loss for the financial sector. "No End to Banks' Capitol Punishment," reads the headline in the Wall Street Journal. But everything's relative. Wall Street wanted no reform at all. And this bill seems like harsh punishment only because the default situation for the last 30 years has been that the financial sector gets precisely the regulation it wants.

Read the whole story: Slate Magazine

Comments

[olerealist]

10:52 AM on 05/27/2010

I suppose "half a loaf is better than none. However the omissions of this reform bill were shameless: 1. omitted adoption of the Voelker Rule. 2. Allowed "clearinghouse" treatment of derivatives as an alternative to "exchanges". 3. Failed to reenact the Glass-Steagal bill. 4. Failed to set any quantifiable parameter to the size of megabanks (its all up to a "commission". Three of the existing megabanks are already way over the size which should be tolearated. The assests of the 3 current largest banks are the size of what is it 2/3s of our total GNP? If we could handle "Ma Bell", why not Bank of America, Goldman Sachs, etc.

[sheoples]

07:14 AM on 05/25/2010

“Capitalism is the legitimate racket of the ruling class”

Al Capone

[suzc]

08:46 AM on 05/24/2010

You don't bite the hand that feeds you or buys you votes.

[guveqzero]

08:40 AM on 05/24/2010

This legislation was never about bank reform, it's all about political cover and campaign contributions for the November elections. The good news is that the bank friendly democrats are on their way out of office; the bad news is that reform will take another year. The megabanks have won another year of strangling the American people from their hard earned money, just like the mob once did in the protection racket. How much longer it continues depends on when we stand up against the bullies and wise guys. 1933 was a landmark year for change in US law, let's hope that 2011 will be a good year for the people.

[01202009]

04:47 PM on 05/23/2010

We need to nationalize and then break up the biggest (too big to fail), especially Goldman Sachs and Citi. We need to do that before the next meltdown.

[iridium53]

11:04 AM on 05/23/2010

Too kind to Wall Street? YES.

Team Obama has failed to reduce the risk to average Americans that weak-willed government regulators and fully-owned politicians will, again, bail out the banks.
Team Obama has failed to exercise good portfolio management by breaking up the investments into managed pieces so that the risk is reduced. Apparently team Obama believes that putting all the eggs in one basket and watching them carefully will suffice. The definition of insanity is, however, expecting different results when the same people do the same things in the same way.

Obama has, once again, failed to even try to protect the average American - in favor of the interests of executives of big corporations.

[olerealist]

10:59 AM on 05/27/2010

Totally agree EXEPT for one thing. Pres. Obama is not and does not have the powers of a dictator.
This pretend reform bill is a product of a Congressional committee over which he has very limited influence. Obama realized that in this Congressional climate with a Senate mezmorized by Wall St., it was either a weak bill or none. Lets hope that Blance Lincoln is reelected.

[picaman]

04:31 AM on 05/23/2010

James 5:4

Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the Lord of hosts.

[dave1111]

04:05 PM on 05/22/2010

Yes. Too big to fail means too big to exist.
How much more simple can it get?

[Nutcase]

11:31 AM on 05/22/2010

Actually, it appears to me to be more of a big, wet kiss.

[Aikaterina]

11:18 AM on 05/22/2010

Our entire government has been too king to Wall St. and the financial sector (banks and insurers, included). That's because our government is run and owned by them: all 3 branches and BOTH parties. Most of the president's financial advisors and many cabinet posts are former Wall St. or banking executives. Those regulatory agencies are staffed by former insiders. The SCOTUS, FED, and even the president is owned by them (www.opensecrets.org has contributions from industries to elected officials). Congressional representatives (both houses) have either large contributions or personal investments in firms, and aren't likely to upset or kill the goose's tha lay their own personal golden eggs.

Sadly, the world's oldest profession is thriving in DC. The politicians, judges and regulators-officials, have all been bought-off by corporate and foreign interests (oil, pharmaceuticals, health insurers, banks, financial firms, agriculture, coal-mining, military-defense, etc.), and they pimp us: selling out the national best interests, disregarding their duties to "serve" the people whom they represent, and pay their salaries-benefits.

[olerealist]

11:05 AM on 05/27/2010

Did not PRESIDENT ISENHOUR warn that this was where we might be heading?

[Peter007]

08:30 AM on 05/22/2010

We have an Industrial- Military complex where bills spending bills are passed to benefit defense contractors in congressional districts.
This bill will probable accomplish the same thing. Some firms with good connections will benefit, while other, small firms will lose.

[worker beenumbed]

05:38 AM on 05/22/2010

The bill still allows naked credit default swaps .Many dollars can still be paid out for every dollar of debt that is unpaid.Therefore it behooves the beneficiaries to bribe the referenced company not to pay the dollar.CDS's need to be limited to the size of the debt .

[MayorQuimby]

01:08 AM on 05/22/2010

These people OWN the gvmt. THEY are the boss. Why? Because THEY have control over MONEY - it's creation, distribution and value. Therefore - YOU, I and "gvmt" are subservient to THEM. Until we get a collapse, nothing stops. It's like the Warden in Shawshank said - "Nothing stops. OR you'll do the hardest time there is."

[dave1111]

04:07 PM on 05/22/2010

Senator Durbin admitted it, in a rare, candid moment.:(

[PhilipTaylor]

09:29 PM on 05/21/2010

Daniel: How do we cast off a Corrupt Financial Aristocracy with unlimited resources?

SIMPLE: AUTOMATE THEM OUT OF EXISTENCE - NOW! TECHNOLOGY IS HERE!

GET RID OF THE BANKSTERS and USE THE INTERNET TO PROCESS ALL LOANS USING FULL AUTOMATED DOCUMENTATION DIRECT FROM THOSE WHO PRINT THE MONEY - NOT THE FED – BUT OUR GOVERNMENT!

That is the reason for the “HATE AND DISTRUST YOUR GOVERNMENT” PROPAGANDA TOSSED OUT BY WALL STREET AND THE REPUBLICANS!

They KNOW the BANKSTERS ARE OBSOLETE and that INCLUDES THE FED!

THAT’S WHY WALL STREET IS STEALING A HYPER-SPEEDS! THE END IS NEAR FOR THEM!

[Wrenigade]

09:24 PM on 05/21/2010

Absolutely, yes! You know something is suspect if the industry spends tens of millions of dollars to oppose and water it down, then publicly supports the final Senate version. As Dan Gross says in Slate, it amounts to a slap on the wrist.

I've also been follwing this "Global Markets" blog for some months now, and I like this guys perspective on things. I think he works on Wall St ahd has an interesting insider's take on things. I also find his blog balanced and irreverent, but very informative: http://globaleconomy.foreignpolicyblogs.com/.