Greenspan rethinks deregulation

Discussion in 'Economy' started by Truthmatters, Oct 23, 2008.

  1. Truthmatters
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  2. Truthmatters
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    Press Release: Chairman Cox Announces End of Consolidated Supervised Entities Program; 2008-230; Sept. 26, 2008


    Washington, D.C., Sept. 26, 2008 — Securities and Exchange Commission Chairman Christopher Cox today announced a decision by the Division of Trading and Markets to end the Consolidated Supervised Entities (CSE) program, created in 2004 as a way for global investment bank conglomerates that lack a supervisor under law to voluntarily submit to regulation. Chairman Cox also described the agency's plans for enhancing SEC oversight of the broker-dealer subsidiaries of bank holding companies regulated by the Federal Reserve, based on the recent Memorandum of Understanding (MOU) between the SEC and the Fed.

    Chairman Cox made the following statement:

    The last six months have made it abundantly clear that voluntary regulation does not work. When Congress passed the Gramm-Leach-Bliley Act, it created a significant regulatory gap by failing to give to the SEC or any agency the authority to regulate large investment bank holding companies, like Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns.

    Because of the lack of explicit statutory authority for the Commission to require these investment bank holding companies to report their capital, maintain liquidity, or submit to leverage requirements, the Commission in 2004 created a voluntary program, the Consolidated Supervised Entities program, in an effort to fill this regulatory gap.




    It seems alot of people are learning that regulations properly written can help the market stay healthy.
     
    Last edited: Oct 23, 2008
  3. Truthmatters
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    DEREGULATION caused this mess folks.

    Gramm Leach Bliley act of 1999 is the culprit.

    It removed the protections put in place after the housing mess following the great depression.

    It was removed and a couple of years later we have the same type of mess.

    Laws and police are needed in every sector of our society from main street to wall street.

    The market is not magical , its needs to have restrictions just like any other sector of human endevor.
     
  4. Truthmatters
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    Damn I wish people cared about this.

    in 20 years some asshole is going to think deregualtion is the answer and it will happen all over again.
     
  5. KMAN
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    KMAN Senior Member

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  6. Diuretic
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    Diuretic Permanently confused

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    I think Lester Thurow said it happened about every 75 years due to the human lifespan and decay in the collective memory. But you'd think someone who could read history would have known? :confused:
     
  7. Diuretic
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    Diuretic Permanently confused

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    I think you didn't get the point. It was lack of government involvement that set this up. It's government involvement - around the world now - tryng to salvage the financial system from the wreckers.
     
  8. Truthmatters
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    They just refuse to accept the facts.

    Never in history has a unfettered market done anything but pool the wealth in smaller and smaller hands which then kills any democratic power.
     
  9. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    They had the regulations on the books - at least until recently.

    The employees of the SEC were under orders from their Bush appointed boss' to not enforce them.

    This whole shit-storm can be laid at the feet of Bush and the lap-dog democratic leadership in congress.

    5 Failures of SEC Chairman Cox - Seeking Alpha

    -Joe
     
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  10. Truthmatters
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    Um dude the whole sub prime thing all took place before the current congress took office.
     

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