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ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 10:58 AM
Original message
WH: Finish Line in Sight on Wall Street Reform

Finish Line in Sight on Wall Street Reform

Posted by Deputy Secretary Neal Wolin

What a difference a year makes.

Last June, President Obama unveiled a comprehensive proposal for financial reform, saying:

Millions of Americans who've worked hard and behaved responsibly have seen their life dreams eroded by the irresponsibility of others and by the failure of their government to provide adequate oversight. Our entire economy has been undermined by that failure.

So the question is, what do we do now? We did not choose how this crisis began, but we do have a choice in the legacy this crisis leaves behind. So today, my administration is proposing a sweeping overhaul of the financial regulatory system.

On that same day, President Obama ticked off his priorities for financial reform:

First, we're proposing a set of reforms to require regulators to look not only at the safety and soundness of individual institutions, but also -- for the first time -- at the stability of the financial system as a whole

Second, we're proposing a new and powerful agency charged with just one job: looking out for ordinary consumers.

Third, we're proposing a series of changes designed to promote free and fair markets by closing gaps and overlaps in our regulatory system -- including gaps that exist not just within but between nations.

A lot of people wondered whether such an overhaul could actually be achieved. Even with our financial system undeniably broken, even with trillions in lost savings and millions of lost jobs, they wondered whether Washington could actually come together and get the job done.

Secretary Geithner warned against inaction:

Every financial crisis of the last generation has sparked some effort at reform. But past efforts have begun too late, after the will to act has subsided.

We cannot let that happen this time. We may disagree about the details, and we will have to work through those issues. But ordinary Americans have suffered too much; trust in our financial system has been too shaken; our economy has been brought too close to the brink for us to let this moment pass.

Thats why we have never let up in the fight for financial reform.

Look at where we are now, a year later, the finish line is in sight.

Right now a Congressional Conference Committee is in its second week of meetings. Thanks to the strong leadership of Chairman Dodd and Chairman Frank, as well as Chairwoman Lincoln and Chairman Peterson, the House and the Senate are tirelessly working through the last few remaining differences that exist between their bills.

In the coming days, they will reach agreement. And once that happens, the President will be able to sign into law the strongest set of financial reforms since those that followed the Great Depression.

We dont have to wait until that day to know what reform will look like.

While some work remains to be done in Conference, the parameters of any final bill are largely set. And they largely follow the principles outlined by the President over a year ago.

For example, we already know that whatever bill comes to the Presidents desk will end the problem of too big to fail. It will end taxpayer-funded bailouts. And it will make sure that American families and businesses never have to foot the bill for the irresponsibility of Wall Street.

We already know that the bill will give regulators the tools they need to curb risk-taking by financial institutions so that we can help prevent future crises.

We already know that the bill will put in place the strongest consumer financial protections in American history. It will make sure that consumers have the information they need to make informed decisions. And it will crack down on companies that take advantage of their customers

And we already know that the bill will create a safer, more transparent derivatives market, so that all of those transactions are brought out of the shadows and placed under strong supervision. It will also force derivatives dealers to hold capital against their risks so that financial firms will be accountable for the risks they take.

We know all this because all of it is already in the bills passed by the House and the Senate.

Everyone has a stake in financial reform. If youre a family trying to buy your first house, a parent trying to fund your childs education, an employee trying to save for retirement, or an entrepreneur trying to expand your business, you have a stake in financial reform.

Over the past two years, we have all lived through a devastating economic crisis. We have all learned important lessons. And when the President signs the final financial reform bill into law, he will have delivered on his commitment last year: to lay a new foundation for a stronger, safer financial system.

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katandmoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 11:11 AM
Response to Original message
1. Right. They just need to insert a few more loopholes.
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ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 11:19 AM
Response to Reply #1
2. Key Democrats are trying to avoid any loopholes. Still,
there were loopholes in the New Deal and the Civil Rights Act. No bill is perfect.

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katandmoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 03:10 PM
Response to Reply #2
3. They are most certainly are not.
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vaberella Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 05:56 PM
Response to Reply #1
9. What are some of the loopholes? n/t
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Thu Jun-24-10 04:39 PM
Response to Original message
4. Deleted message
Message removed by moderator.
ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 04:51 PM
Response to Reply #4
5. Here is the President's proposal.

President Obama Calls for New Restrictions on Size and Scope of Financial Institutions to Rein in Excesses and Protect Taxpayers

WASHINGTON, DC- President Obama joined Paul Volcker, former chairman of the Federal Reserve; Bill Donaldson, former chairman of the Securities and Exchange Commission; Congressman Barney Frank, House Financial Services Chairman; Senator Chris Dodd, Chairman of the Banking Committee and the President's economic team to call for new restrictions on the size and scope of banks and other financial institutions to rein in excessive risk taking and to protect taxpayers.

The Presidents proposal would strengthen the comprehensive financial reform package that is already moving through Congress.

While the financial system is far stronger today than it was a year one year ago, it is still operating under the exact same rules that led to its near collapse, said President Barack Obama. My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform; and when I see record profits at some of the very firms claiming that they cannot lend more to small business, cannot keep credit card rates low, and cannot refund taxpayers for the bailout. It is exactly this kind of irresponsibility that makes clear reform is necessary.

The proposal would:

  1. Limit the Scope - The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit.

  2. Limit the Size - The President also announced a new proposal to limit the consolidation of our financial sector. The Presidents proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms, to supplement existing caps on the market share of deposits.
In the coming weeks, the President will continue to work closely with Chairman Dodd and others to craft a strong, comprehensive financial reform bill that puts in place common sense rules of the road and robust safeguards for the benefit of consumers, closes loopholes, and ends the mentality of Too Big to Fail. Chairman Barney Franks financial reform legislation, which passed the House in December, laid the groundwork for this policy by authorizing regulators to restrict or prohibit large firms from engaging in excessively risky activities.

As part of the previously announced reform program, the proposals announced today will help put an end to the risky practices that contributed significantly to the financial crisis.

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papadog Donating Member (118 posts) Send PM | Profile | Ignore Thu Jun-24-10 05:05 PM
Response to Original message
6. Do the research. The Dodd loophole is coming from The WH
Summers and Geitner strike again
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Hawkowl Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 05:26 PM
Response to Original message
7. Fake reform seems to be the hallmark... nt
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FrenchieCat Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-24-10 05:33 PM
Response to Reply #7
8. The reforms are better now than they were.
I'm so freaking tired of folks complaining endlessly
when we ain't had shit at all for I don't know how long.

Now all of the sudden they demand instant perfection about a whole bunch of things
that half of the time, they know little about....

and yet they snipe with their bumper sticker saying nothing howls.
and moan and groan and act disappointed the whole fucking time,
like they thought that the world had been made over, like in the form of a miracle,
and now everything would be just so, only if......
No wonder the Republicans are gonna take over;
those who "pretend" they support Dems aren't oftentime worth shit.
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