House Panel Votes to Limit States' Policing of Wall Street (OUTRAGE!)

[markses]

http://www.nytimes.com/2003/07/11/business/11WALL.html

A bill that would sharply limit the power of state securities regulators to police and penalize wrongdoing by brokerage firms and their employees was approved by a subcommittee of the House Financial Services Committee yesterday.

It now moves on to debate by the full committee.

The bill, the Securities Fraud Deterrence and Investor Restitution Act of 2003, was introduced in May by Richard H. Baker, Republican of Louisiana. It bars state securities regulators from creating rules for brokerage firms that differ from those established by the Securities and Exchange Commission or self-regulatory organizations like the New York Stock Exchange. If the bill had been law in 2002, for example, it would have prevented Eliot Spitzer, the New York attorney general, from pursuing the changes on Wall Street that resulted from his investigation into analyst conflicts

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The bill, which passed the subcommittee mainly along party lines, appears to be in direct response to Mr. Spitzer's aggressive Wall Street inquiry. Michael DiResto, a spokesman for Mr. Baker, said: "Congressman Baker's concern throughout was when a New York state official began to dabble in national regulatory matters, one state in the midst of their investigation, their criminal findings and their discussions of settlements, would start trying to institute new regulatory structures for financial firms that have national scope."

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More...

This is an absolute fucking outrage of first magnitude. Mr. Spitzer's aggressive prosecution of conflict of interest is the only reason that the Dow isn't at 5,000 today. When the Hooverite Bushies did nothing, Spitzer stepoped in and used his legitimate power to restore investor confidence, by ending the wild hanky panky. And this is the reward? Dabbling, says this tremendously stupid ass, Mr. Baker? Dabbling?

I am at a loss for words. Where are the states' rights conservatives? The next move, of course, is to prohibit states from setting their own environmental standards! Dabbling, you see.

Write your fucking congresspeople BUT QUICK about this shit. One of the most disturbing pieces of legislation pout there today, mark words.

[pasadenademocrat]

1. Why are you surprised?

The repubs are bought and paid for. These are the people who paid. They will be protected, regardless of the cost to the rest of the country.

[Davis_X_Machina]

2. Soitzer will *not* be governor of New York...

...if these assclowns can do anything to prevent it.

States Rights for me, but not for thee...

[susanna]

3. What?!

I agree - this should NOT stand. I'll follow up with my reps. Thanks for the heads up, markses.

ON EDIT: learn how to write in sentences. :-)

[markses]

5. It's unbelievable audacity

Do not let them sneak this through.

In my opinion, Eliot Spitzer is one of the key political heroes of the last 25 years. Baker wants to shut down accountability for banks and brokerages.

What is strangest here is the real anger of brokers toward the fraudulent and despicable actions of the top-flight analysts like Jack Grubman (who alledgedly jacked up his rating of ATT stock on Sanford Weil's say so, in exchange for Weil helping his two children get into the 92nd Street YMCA pre-school!). The brokers of course lose business because of these criminal antics. Now, this dumbass co-conspirator Baker wants to make it EASIER for fraud and conflict of interest to permeate the securities markets!

It's befuddling that they could introduce such destructive legislation in this economic environment, though they clearly waited for the Dow to go up over 9,000 again before they even DARED pull this bullshit.

Quite shocking, but I guess par for the course for the party of bribes.

[w4rma]

4. Wow. The Hooverites back in power and totally out of control. (n/t)

[alfredo]

6. thanks for

the story. It is out on my mailing list.

[markses]

7. Pump this out

Every investor knows the value of Spitzer's prosecution. This is a backdoor deal, and a nasty one, since it claims to make up for the fraud, while only creating the conditions for further fraud.

See also my post on this in GD for more information:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=104&topic_id=24345&mesg_id=24345&page=

[Jeff in Cincinnati]

8. But doesn't the legislation have a pretty name?

Securities Fraud Deterrence and Investor Restitution Act of 2003 Damn, but that sounds good, doesn't it? Who's going to be against deterring fraud and restitution for investors?

Unfortunately, it should be titled the "Fuck You And The White Horse You Rode In On Act of 2003"