Will Proposed Financial Regulatory Overhaul Actually Reform Wall Street?

[Jefferson23]

** When Robert Johnson gave testimony last October, he was basically shut down after 4 minutes! Only as a result of the Christian Science Monitor and the Atlantic reporters, who approached Barney Franks, who admitted mea culpa, did Johnson's testimony get put into the official record. These great folks we have in D.C. looking out for Americans, is not happening. The present reform is not likely to prevent another
economic disaster..the case the gentleman makes is worth listening to.

I will post the text as soon as it's available from Democracy Now, for now, the video, in full at the link.


With the main healthcare reform bill signed into law, Democrats say Congressional efforts to reform Wall Street and the nation’s financial regulatory system will soon top the Obama administration’s agenda. A measure put forward by Sen. Christopher Dodd is being described as the biggest overhaul of financial rules since the 1930s, but critics have faulted the proposal for giving additional power to the Federal Reserve while gutting the proposed Consumer Financial Protection Agency and housing it inside the Fed.



Robert Johnson, former economist at the Senate Banking Committee and the Senate Budget Committee. He’s now the director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute.

Kai Wright, editorial director of ColorLines magazine and a Fellow at the Nation Institute.


http://www.democracynow.org/2010/3/25/will_proposed_financial_regulatory_overhaul_actually

[notesdev]

1. Are you kidding?

Mr. Countrywide VIP himself proposes a financial reform bill and we're supposed to take it seriously?

True financial reform starts with sending Dodd and all like him home and putting a principled and uncompromising Senate Banking Committee chairman in his place.

[Jefferson23]

2. No, I'm not kidding, Johnson points out that there is nothing

in the bill that will prevent another too big to fail scenario.

Robert Johnson, former chief economist of the Senate Banking Committee. He consulted with lawmakers on Capitol Hill during the negotiations over the $700 billion bailout bill. His latest piece is “Bridge Loan to Nowhere” (The Nation).

http://www.democracynow.org/2008/9/30/bridge_loan_to_nowhere_house_rejects

[Jefferson23]

3. The text is now available, from earlier today:

JUAN GONZALEZ: With the main healthcare reform bill signed into law, Democrats say congressional efforts to reform Wall Street and the nation’s financial regulatory system will soon top the Obama administration’s agenda.


On Wednesday, the President held a strategy meeting at the White House with Senate Banking Committee chairman Christopher Dodd and House Financial Services Committee chair Barney Frank. The meeting came two days after the Senate Banking Committee advanced Dodd’s measure to overhaul financial regulation on a party-line vote. Dodd spoke to reporters after Wednesday’s meeting.


SEN. CHRISTOPHER DODD: We intend to get a strong financial reform package. We’re going to end “too big to fail.” And never again are American taxpayers going to be asked to bail out a failing financial institution because they have an implicit guarantee from the federal government. We’re going to have a strong Consumer Protection Agency, so that people can count on someone watching out for their interests on mortgages and credit cards and other financial activities. We want to have that systemic risk council so we have a good radar system to pick up problems before they challenge and threaten the entire financial system in our country. We want strong statements and strong regulations on dealing with exotic instruments like over-the-counter derivatives and others that can put our system at risk.


I think the American people expect us to address the largest and most significant financial crisis since the Great Depression, caused by a collapse in our financial system either because regulators didn’t do their job or there were no cops on the beat at all, and certainly in unregulated activities that contributed to this mess.



JUAN GONZALEZ: Meanwhile, Congressman Barney Frank said the issue of financial regulatory reform will be Congress’s number-one concern after a two-week Easter break.


remainder in full: http://www.democracynow.org/2010/3/25/will_proposed_financial_regulatory_overhaul_actually