Dodd unveils sweeping financial regulation plan
JIM KUHNHENN
From Associated Press
March 15, 2010 10:52 PM EDT
WASHINGTON (AP) — A new Democratic Senate bill to tame the financial markets would give the government new powers to break up firms that threaten the economy, force the industry to pay for its failures and create an independent consumer watchdog within the Federal Reserve.
Legislation unveiled Monday by Senate Banking Committee Chairman Chris Dodd falls shy of the ambitious restructuring of federal financial regulations envisioned by President Barack Obama or contained in legislation already passed in the House.
But the 1,336-page bill, which includes provisions negotiated with Republicans, would still be the biggest overhaul of regulations since the New Deal. It comes 18 months after Wall Street's failures helped plunge the nation into a deep recession.
In its sweep, the bill would touch all corners of the financial sector, from small-town mortgage brokers to the highest penthouse office suites on Wall Street. Lobbyists were already mobilizing to change several of its features.
In announcing his bill at a news conference, Dodd stood alone, a sign of the difficult task ahead of him in forging a bill that can pass the Senate. None of the 10 Republicans on his committee endorsed his plan. Several Democrats have voiced dismay at Dodd's decision to reject a plan for a freestanding consumer agency, an Obama regulatory centerpiece.
The bill would create a powerful nine-member Financial Stability Oversight Council, chaired by the treasury secretary, to look out for the systemwide health of the financial sector and to stop financial firms from becoming "too big to fail." The council could place large, interconnected financial institutions under the supervision of the Federal Reserve. And it would have the authority to approve the breakup of large complex companies if they pose a threat to the nation's financial system.
Like the House bill, Dodd's proposal would create a mechanism to shut down large, failing firms, with shareholders and unsecured creditors bearing the losses. Management also would be removed. The costs of such a shutdown would be covered by a $50 billion fund financed by the largest financial firms.
The Federal Reserve, under Dodd's plan, emerges as a leaner institution with new powers to regulate the size and the activities of the nation's largest financial firms. The Fed, once threatened with the loss of all its regulatory powers, will now oversee all bank holding companies with assets of $50 billion or more. But it would also be given power to regulate and even break up large interconnected companies, such as the insurance conglomerate American International Group, whose failure could pose a risk to the economy.
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Doing a fair amount of reading and the one OVERWHELMING fact that continues
to permiate is...EVERYTHING the govt' gets involved in, screws the pooch big time.
Point 2, I don't believe it's about saving us...much like healthcare (along with the
education loan package buried in the healthcare bill...what???) it's about CONTROL.
Point 3, related to point 1....what in hell does the fed govt know about business,
they started this whole mess with fanny/freddie and being fiscally irresponsible
massively accelerated by Obama and co.
The govt' does NOTHING well, the more we can get them out of our lives the
better. The free market will take care of itself.
ALL THE WHILE SOCIAL SECURITY IS GOING BANKRUPT, they want to oversight
economics...
Who do you think played a big part in screwing up the car companies...
JIM KUHNHENN
From Associated Press
March 15, 2010 10:52 PM EDT
WASHINGTON (AP) — A new Democratic Senate bill to tame the financial markets would give the government new powers to break up firms that threaten the economy, force the industry to pay for its failures and create an independent consumer watchdog within the Federal Reserve.
Legislation unveiled Monday by Senate Banking Committee Chairman Chris Dodd falls shy of the ambitious restructuring of federal financial regulations envisioned by President Barack Obama or contained in legislation already passed in the House.
But the 1,336-page bill, which includes provisions negotiated with Republicans, would still be the biggest overhaul of regulations since the New Deal. It comes 18 months after Wall Street's failures helped plunge the nation into a deep recession.
In its sweep, the bill would touch all corners of the financial sector, from small-town mortgage brokers to the highest penthouse office suites on Wall Street. Lobbyists were already mobilizing to change several of its features.
In announcing his bill at a news conference, Dodd stood alone, a sign of the difficult task ahead of him in forging a bill that can pass the Senate. None of the 10 Republicans on his committee endorsed his plan. Several Democrats have voiced dismay at Dodd's decision to reject a plan for a freestanding consumer agency, an Obama regulatory centerpiece.
The bill would create a powerful nine-member Financial Stability Oversight Council, chaired by the treasury secretary, to look out for the systemwide health of the financial sector and to stop financial firms from becoming "too big to fail." The council could place large, interconnected financial institutions under the supervision of the Federal Reserve. And it would have the authority to approve the breakup of large complex companies if they pose a threat to the nation's financial system.
Like the House bill, Dodd's proposal would create a mechanism to shut down large, failing firms, with shareholders and unsecured creditors bearing the losses. Management also would be removed. The costs of such a shutdown would be covered by a $50 billion fund financed by the largest financial firms.
The Federal Reserve, under Dodd's plan, emerges as a leaner institution with new powers to regulate the size and the activities of the nation's largest financial firms. The Fed, once threatened with the loss of all its regulatory powers, will now oversee all bank holding companies with assets of $50 billion or more. But it would also be given power to regulate and even break up large interconnected companies, such as the insurance conglomerate American International Group, whose failure could pose a risk to the economy.
--------------------------------------------------------------------------
Doing a fair amount of reading and the one OVERWHELMING fact that continues
to permiate is...EVERYTHING the govt' gets involved in, screws the pooch big time.
Point 2, I don't believe it's about saving us...much like healthcare (along with the
education loan package buried in the healthcare bill...what???) it's about CONTROL.
Point 3, related to point 1....what in hell does the fed govt know about business,
they started this whole mess with fanny/freddie and being fiscally irresponsible
massively accelerated by Obama and co.
The govt' does NOTHING well, the more we can get them out of our lives the
better. The free market will take care of itself.
ALL THE WHILE SOCIAL SECURITY IS GOING BANKRUPT, they want to oversight
economics...
Who do you think played a big part in screwing up the car companies...
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