Financial Reform Bill contains "Permanent, Unlimited Bailout authority"
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bornnraisedoffCMR
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From Politico
(Interview with POLITICO’s David Mark)
Brad Sherman Congressman (D-Calif.), member of House Financial Services Committee:
How can Democrats get out ahead of the Goldman Sachs story politically?
We can say, “No taxpayer money to Wall Street firms, their creditors and the counterparts.” Then we go to the voters and tell them there’s no money for Wall Street, but regulation instead. If you can’t run on that slogan, you’ve got a problem.
But there are serious problems with the Dodd bill. The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.
As an active member of the House Financial Services Committee were you surprised to see suspicious shorting – perhaps illegal – by a top financial services firm?
Goldman is accused of hand-selecting bad mortgages to sell. If that’s true it’s absolutely outrageous. There are two issues here. First, did they mislead their clients into buying this type of mortgage rule? And second, did they hand-select the worst?
(Interview with POLITICO’s David Mark)
Brad Sherman Congressman (D-Calif.), member of House Financial Services Committee:
How can Democrats get out ahead of the Goldman Sachs story politically?
We can say, “No taxpayer money to Wall Street firms, their creditors and the counterparts.” Then we go to the voters and tell them there’s no money for Wall Street, but regulation instead. If you can’t run on that slogan, you’ve got a problem.
But there are serious problems with the Dodd bill. The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.
As an active member of the House Financial Services Committee were you surprised to see suspicious shorting – perhaps illegal – by a top financial services firm?
Goldman is accused of hand-selecting bad mortgages to sell. If that’s true it’s absolutely outrageous. There are two issues here. First, did they mislead their clients into buying this type of mortgage rule? And second, did they hand-select the worst?
Comments
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man I need to see the actual bill before I can make an educated comment about it
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NO, it makes sure that no bank can just die instantly. They will be phased out so that the market doesnt crash. At least thats what I heard about these ideas.
And why are you taking Mitch McConnell's word on this? -
The Frank Luntz memo concerning Financial Reform encouraged Republicans to lie and just say its another bailout.
"All 41 Republican senators have signed a letter to Senate Majority Leader Harry Reid saying they are opposed to the financial regulation bill put forward by Democratic Sen. Chris Dodd, Senate Republican Leader Mitch McConnell's office announced today.
The GOP's contention that the reforms amount to a "bailout bill" seem to follow the advice of a GOP pollster and focused on a provision in the legislation to create a $50 billion bank liquidation fund."
That's the play they're running.
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Swiffness! wrote: »The Frank Luntz memo concerning Financial Reform encouraged Republicans to lie and just say its another bailout.
"All 41 Republican senators have signed a letter to Senate Majority Leader Harry Reid saying they are opposed to the financial regulation bill put forward by Democratic Sen. Chris Dodd, Senate Republican Leader Mitch McConnell's office announced today.
The GOP's contention that the reforms amount to a "bailout bill" seem to follow the advice of a GOP pollster and focused on a provision in the legislation to create a $50 billion bank liquidation fund."
That's the play they're running.
I wouldnt trust a Republican to write this Financial reform either. None of these ? nutz know what they are doing up there. Why are yall so obsessed with the two-party partisan ? ? Aint nothin but distractions from the real problems.
Why cant they see the root cause of the situation. There would have been no derivatives if it wasnt for easy credit created by the Fed and a government created housing bubble. -
thatdamnjay wrote: »from what I understand of the Goldman Sachs situation , the bundled securities were created to fail by one party. and it was okay to bet against them, and make money off of it, by that one party...
the fraud came in when the open market was given access to those same bundled securities, without any sort of warning, as if the bundled securities were legitimate, as opposed to doomed to failure.
I'm still gettin all my facts in, so that may be oversimplified or incomplete.^^
as far as the Financial Reform Bill, what I'm getting is it's language is set up so a bailout would be last resort, but still an option on the table for the health of the industry as a whole. this also is just my interpretation of what's goin on at the moment...
if those 2 interpretations turn out to be true, I'm pretty sure that financial reform can be passed pretty easily, without a lot of posturing from the Republicans. the timing of the Goldman Sachs thing plus the fact that there may be more fraud cases on the way bode well for the financial reform deal. not to mention both sides should be able to get some major provisions into the bill itself, and therefore be able to proclaim they're "the party for the people" come election season later this year...
A healthy industry wouldnt need bailouts. These banks should be able to fail, you dont want to soften the blow, you want the blow hard and quick so the recovery will be quick. -
DarcSkies777 wrote: »NO, it makes sure that no bank can just die instantly. They will be phased out so that the market doesnt crash. At least thats what I heard about these ideas.
Come on man, you honestly think Tim Geithner would let his friends at Goldman go out like that?
