This morning on Larry Mantle's Air Talk Show on KPCC I had a back and forth with the American Bankers Association on the problem with credit card users having their rates jacked way up even when they don't miss their payments. The Bankers' lawyer says the bait and switch tactics will all be fixed by 2010 with new federal regulations. Consumers cannot wait til 2010, not in this economy. And even then you have to question whether government regulators can get it right after watching Sunday night's 60 Minutes story on how the SEC knew about Madoff's scam as early as May 2000, but looked away.
The 60 Minutes segment, "The Man Who Knew," was produced by my brother Andy, and it shows how the SEC ignored the financial analyst who warned the regulators about Bernie Madoff's $50 billion fraud nine years ago. The segment raises fundamental questions about how the Obama administration will do better at making regulation work.
Financial analyst Harry Markopolos proved statistically that because Madoff's record was so good it was like a baseball batter hitting 960. it's such a perfect batting average it had to be a fraud. The whistleblower dug and kept blowing the whistle, unable to find anyone who had ever traded with Madoff because his investment fund never made trades. Still, the SEC ignored evidence that Markopolos said was 100% conclusive by 2005. He also said that major Wall Street firms knew and did not invest with Madoff, but wouldn't blow the whistle. Obama should listen carefully to Markopolos's reason why: "People in glass houses don't throw stones and self regulation on Wall Street doesn't work."
President Obama's SEC and entire regulatory structure needs to be far better. He should hire Markopolos on as a consultant to show how to rebuild what is an embarrassment of an agency and, in too many other corners, of a regulatory structure. For inspiration, the president should listen to Madoff, in his own words, explain back when he was on top how it was impossible to fool the SEC: www.cbsnews.com/stories/2009/02/27/60minutes/main4833667.shtml
Government is always bad.
Stop electing people who shout that governmnet is always bad.
http://seaclearly.wordpress.com/predatory-practices-from-the-credit-card-industry
:-)
"ACTION: Tell New Dems to Stop Paying Former Bank Lobbyists With Your Tax Dollars
By: Jane Hamsher Wednesday March 4, 2009 9:40 am
CQ Politics says that "Democratic Reps. Jim Matheson of Utah and Gabrielle Giffords of Arizona have joined a quiet revolt in the House that could slow some of President Obama's fast-moving priorities." This, we are told, is because "The two are among 49 Democrats from congressional districts that backed Republican Sen. John McCain's 2008 presidential race and whose support for the Democratic majority's progressive agenda is increasingly not assured."
http://firedoglake.com/2009/03/04/new-dems-walking-to-the-right-of-blue-dogs/
Everyone needs to keep an eye on this or the bank Cramdown is going to happen to homeowners instead of the predatory lenders.
Meanwhile, Jamie ... "high crime is REAL crime, and it is everywhere." Do we need more proof of this? Quite obviously not.
The SEC ... which is made up of human beings too ... has been in-the-pocket for dozens of years. We need say nothing further about other Commissions, nor of the Congress itself.
More than anything else, I think that "We the People" need to make it loud-and-clear known that we have extremely high standards of professional conduct that we will collectively insist that every member of any legislature, anywhere, must meet. "You do the crime, buddy, and you'll do the time. Right here, right now, and with absolute certainty. No more of this pasty, self-shielding 'off the table' crap." We can't afford crime ... most especially not high crime.
"High Crimes" or "misdemeanors." Take your pick. Either way, "You're Out!"
I think that this ought to come right down from the words of the Chief Executive himself. But simply as a statement of the obvious; of a self-evident truth.
Geithner? Goldman. Bernanke? Goldman. Summers should be drop-kicked for past performance alone. None of these people care about anything aside from their shadow bank masters and will protect them at all costs to secure their (self)righteous place in Wall St. boardrooms once their cabinet stints are ended.
If it isn't obvious by now, we're totally screwed.
The last election illustrated that principle very clearly and, as voters, we much stand vigilant to ensure the Obama Administration carries out this mandate or, if they don't, we have an obligation to throw them out of office in the next election.
Vigilance between elections is the hard part. Picking out a regular day each year or each quarter to send a letter to our Congressman asking for evidence that the Executive branch is in fact carrying out certain policies is one practical way to exercise this vigilance between elections.
It's why they call our precious system "participatory" and "representative" democracy; we need STAY engaged and the results will follow.
Yes, they must all be held to the fire. Governing is not supposed to be "your ticket to the good-life for yourself alone."