Banks already finding ways around Obama financial reforms

[Amerigo Vespucci]

Source: The Raw Story

On the same day that President Barack Obama announced an ambitious plan to reform the US financial system, bankers at the largest Wall Street institutions indicated that they are already finding ways around the proposed changes.

Sources at three Wall Street banks told BusinessInsider's John Carney that "they are already finding ways to own, invest in and sponsor hedge funds and private equity funds" despite the proposed restrictions on those activities. One unnamed operative at a major bank said his firm expects the reforms to affect no more than one percent of its business.

President Obama announced two major reforms of the financial system on Thursday. The first would see the US in effect return to the separation of commercial and investment banking that was mandated by law until 1999, when that rule in the Depression-era Glass-Steagall Act was abandoned.

Many economists say allowing banks to be both lenders to the public and investors in large hedge funds and other securities contributed to the economic collapse of 2008.

Read more: http://rawstory.com/2010/01/bankers-ways-around-financial-reforms/

[DJ13]

1. Obama needs to get it through his head

The only way to separate banking from investment after the repeal of Glass/Steagall is to break them up.

Trying to keep them whole while regulating them wont be effective.

[OhioChick]

2. Greedy fucks. n/t

[MannyGoldstein]

3. No shit?

Really?

Pretty surprising.

[FiveGoodMen]

4. The banks undoubtedly PUT those loopholes into the legislation in the first place

(in a bipartisan way, of course)

[ProgressIn2008]

5. LOL, they know it's big talk bullshit. They're not breaking a sweat - DC's in their pockets. nt

[jwirr]

6. Until he uses the anti-trust laws against these banks and corporations

he will not be able to control them. They need to be broken up into smaller units.