DC Update:

In the Senate, we have two proposals: The Dodd plan, which is limp ineffective series of toothless proposals that fail to address what the crisis. And there is the Kaufman Reform plan, which is much more aggressive in attacking the root of the problem.

In the House, we have Barney Frank’s plan, which originally looked like it had some teeth. Since it was first floated, however, I’ve heard nothing more on it.

Is there any chance we are going to get some sort of viable reform legislation anytime soon?

Category: Bailouts

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

21 Responses to “Where Are We On Financial Reform ?”

  1. philipat says:

    Ummm, No.

  2. gdd9000 says:

    Too funny. Philipat goes and beats me to it.

    The short short answer : No.

  3. hayek says:

    washington getting something done right….not in our lifetimes

  4. ancientone says:

    As an empire, we have lost the ability to correct systemic errors—-when everything eventually falls apart completely, the greedy rich will simply cash out and move on to somewhere else, like Singapore or Dubia. The unwashed herd will be left in the rubble.

  5. alfred e says:

    Huh?

    Where’s the tres fashionable Tea Party on this issue? Hiding out? I’d say so. Tells you something doesn’t it.

    No. Ain’t gonna happen. Because BSO won’t allow anything real. Niehter will the GOP or the TPers.

    He can push through a phony health-care bill only after pharma and insurance companies got their homage.

    And he can push through a phony financial reform bill. And may.

    But actually, a toothless reform bill is irrelevant at this point.

    It won’t buy any election votes.

    BSO knows that. That’s why they keep conjuring up these upside-down homeowner booster plans.

    Pure and simple politics and fraud.

  6. dcsos says:

    As Paul Farrell of Market Watch has pointed out:
    when Paul Volker is considered a radical,
    you know you’re in trouble!

  7. wunsacon says:

    My recency bias is telling me not to expect any appropriate response from either Dems or GOP/Teabaggers until the next crisis. And not even then!

  8. troubled times says:

    K-street will do its work and we will lose once again…

  9. DL says:

    I have faith that we’ll get some sort of “smoke and mirrors” type legislation, which appears to provide some consumer protection, and which is touted as ending TBFT, but which does little other than create an illusion.

    In the unlikely event that Bob Corker and Richard Shelby endorse a financial reform bill, I’ll believe that it has some substance. Probably won’t happen, though.

  10. dcsos says:

    Don’t expect any reform:
    After all Ben Bernanke told the Congress on Feb 10 2010:
    “Given the very high level of reserve balances currently in the banking system, the Federal Reserve has ample time to consider the best long-run framework for policy implementation. The Federal Reserve believes it is possible that, ultimately, its operating framework will allow the elimination of minimum reserve requirements, which impose costs and distortions on the banking system.”

  11. FrancoisT says:

    China will reform their economy toward consumerism before the fuckheads in DC do anything for the common good.

  12. FrancoisT says:

    BTW, the fact that the Kaufman plan is the right one should be proof positive that exclusive public campaign financing is the right thing to do.

    Kaufman does not need money and won’t run again; and contrary to Dodd, he has the decency to not suck Wall Street’s ass .

    But don’t tell that to the average Joe and Jane; their heads would explode

  13. mathman says:

    @ Ancientone:

    There will be no place to run once the collapse ramps up. The planet is being poisoned and it will effect everyone and every living thing.

    Think of the population of Earth as passengers occupying a jet (the biosphere) on a short runway (finite resources), attempting to take off (continue living the way we are) by throttling up to full power (not correcting our consumption). The pilots are the powers that be – heedless of the ecological warnings and blinded by greed and hubris. The passengers are the rest of us, making plans for when we arrive (the future), trusting the pilots to get us there. In the control tower are the people who could warn us to power down and abort the take-off, but they’re too busy doing too many mundane tasks to notice that we’re on the short runway and headed for disaster.
    (This analogy is from Catton’s book, Bottleneck.)

    Money will give them no advantage.

  14. dsawy says:

    There won’t be any “reform,” because as the health care “reform” bill has shown up, this Congress is unable to focus their legislative efforts on simple, clear, direct issues in discrete bills. They want gargantuan “omnibus” bills, with everything tossed in. Like health care, finance is something where we have an interlocking set of issues that need to be addressed. We could pick one simple thing and handle it in one piece of legislation, get that done and then move on to the next piece in a prioritize manner.

    For example, I think that unwinding the Commodities Futures Modernization Act of 2000 is a very high priority – and that if we did just that, we could address financial derivatives issues and clamp down on rampant energy futures rigging in the same effort. Require all derivative contracts to be traded in the open, with enforced margin requirements settled at the end of every trading session, just as they are for ag/commodity futures.

    Put all the issues of leverage, salaries, etc – off to the side for the moment and let’s get the markets to actually act as markets again.

    Next highest priority would be a combination of breaking up the TBTF’s and putting in firewalls into the financial markets. Break apart companies that deal in financial futures and insurance/annuities, for example, so we never again have an AIG. Deposit banks should be broken away from companies handling stock/bond investments, as we had things in the early 80′s. Re-regulate interest to be paid on deposits and increase reserve requirements for deposit-accepting banks. Wall off investment banks into their own market, with no access to the Fed’s discount window whatsoever.

    I believe that enacting legislation on just these two issues, as two individual bills, would see some real chance of success and provide some stability going forward. They’re not the only pieces required, but I believe they’re two of the highest priorities right now and in the future. The resulting legislation would be compact enough that even someone as stupid as a member of Congress would be able to read it before voting on it.

    Sadly, I don’t expect anything worthwhile out of this Congress – or the next one.

  15. flipspiceland says:

    That the majority opinion is that there will be no reform, or the reform will not prevent the debacle of the last few years speaks volumes about the low expectations everyone who cares has about the legitimacy of our so-called government employees.

    That in itself is a very disappointing commentary on the state of things in this country. The unUnited States is as I have repeated time and again, ungovernable as constituted due to its Too Big Too Admit Failure size, diversity, and polycultural differences and as such it needs to be broken apart officially.

    All that is occurring with the present ‘standard’ is the profit that accrues to a very few who truly understand that this continual chaos is a great environment in which to score big with little or no consequences if caught and as the bailouts prove, empower them even more.

    Bust it up or live with the eternal damnation of being hamsters on a wheel.

  16. torrie-amos says:

    i’m with dsawy on what shoud be done and how, just kiss solutions

    what does jamie dimon want???????????????????????

    i really think little will be done, jamie has convinced the powers that be that financial heft is a must in a global competitive world, so they are the soldiers of progress, which i won’t disagree with, hey, if we gotta have crooks let’s have em on our side and be the best they can be,

    we are two years into this, in that time they have eliminated 1/2 the competition so we are not japan, no zombie banks, we got one more year of foreclosures and two more years of cre, so one would imagine jamie’s directives are let us work thru this first, large liquid companies can get money, others yes, the ones who haven’t don’t want or need it

    i would imagine this is a gamble obama has too take, he get’s something, some consumer finance etc. and he and jamie have an agreement, u screw me on this one with anymore shenanaigan and in 2013 i will hammer u too death and break u all up, i really believe this

    personallly i’m more concerned with accounting, off balance sheet this and that and special purpose vehicles

  17. Mr.E. says:

    This is next up on the Obama agenda and it will get pushed through Congress, somehow, BEFORE the fall elections. The Dem’s badly need this (punish those pig bankers and Wall Street) to recover from the public ire they have suffered over health care legislation. In the end politics will rule, not good sense nor true public need nor true public good.

    Regardless of what is passed, however, it will prove to be of little real consequence as long as regulatory oversight, budgets. etc. remain the in the holds of the political process of both the Executive and Legislative branches as we now know them. Not until there is real, meaningful campaign finance reform and severe restrictions on lobbyist’s activities can there be real and meaningful regulatory reform.

  18. Lugnut says:

    Whither Obama on financial reform? His lack of voice and leadership in driving the dailogue and pushing a specific reform agenda is deafening. If he continues down this path, letting Chris Dodd drive this bus will be viewed as one of his greatest shortcomings as a President when history is written, this is too big an issue to let slide through the hands of a lame duck Congressman.

  19. dead hobo says:

    BR wondered

    Is there any chance we are going to get some sort of viable reform legislation anytime soon?

    reply:
    ——————–
    No.

  20. Greg0658 says:

    woke up watching CNBC Economic Forum this morn’g .. emailed them this Plan .. probably in the digital round file already … titled: Green Shoots Economy

    > Long Tail Gradual Increase’g Tax Rate on Income for Individuals & Businesses & Government Offices
    > very few carveouts (tax-break loopholes) *
    > The Entire Tax Base FLUXUATES with the previous years tax receipts
    > under the premise to Balance the United States Governments at the Federal & State Level
    > at Tax Rates to BALANCE those Federal & State Level Governments Daily Operating Budgets ** in 20 years (time between generations)
    > at Tax Rates to BALANCE those Federal & State Level Governments Pension & Healthcare Benefits in 50 years (1/2 a humans lifetime)
    > at Tax Rates to BALANCE those Federal Mass Entitlement Programs in 75 years (a workers lifetime)
    > All Sales Taxes go to the County to distribute to Townships and Cities within a BALANCED Budget under same time frame above

    * Churches; Not-For-Profits; All-Alike-Types — become Not Exempt

    ** Operating Budget Includes a rigorous & accomplishable Research & Development Plan for the Nation

    In closing the Float of the 20, 50, 75 year time frame figures into the Fluxuate’g Tax Base .. but the float does not float out in time .. when adopted by the end of 2010 we see BALANCED Budgets and PayGo in 2030, 2060 & 2085.

    Greg Stein – Oglesby, IL USA Earth
    aka Greg0658

  21. Greg0658 says:

    preSlate “The Lone Star Secret” ..
    was thinking POTUS43 says to staff get the MEW and BuildingBoom to pay for the Wars but not in my state
    postSlate .. on my yesterdays post concept above .. the States involved in the USA in-mass Tax Rates Schedule .. our government officials at CBO could and should set rewards for smart states into a structure .. the nationwide policy in my head was meant to bring the Union of the 50 States to the mess together .. a SOP should include the smarts of the GovenorCEOs of the 50 Super-Districts of the USA

    postSleepieTime .. resistance is futile .. changes will happen when this hurts the Empire on the backfeed
    postCBO #s on Employment .. survival of the many outweigh the needs of one .. animals are disposable