New Banking Crisis In The Works

[MaggieMae]

I'm sure another banking crisis is coming, but not for the reasons in the OP. The financial reform bill will mitigate another financial crisis, but Wall Street will find a way to leverage itself up to make enormous profits so they can pay themselves billions of dollars then collapse down knowing that the taxpayer will bail them out. It seems that many think this is OK, so they are opposed to the financial reform bill. Also, the Fed flooding the financial system with enormous amounts of money destabilizes the entire financial system.

The financial reform bill is only going to make it easier for the banks to be bailed out as the govt will be backing the entire process with their new "regulations". The 2 realities are that, #1,the banks are not really that upset about having a bigger safety net. #2 is that all this hatred toward the "big banks" and the desire to punish them with more regulations will ultimately trickle down to small business and the middle class in heftier fees and stricter loan criteria. We are the final losers in this but go ahead and lets get those evil rich companies and banks. What have we got to lose right?

My only problem with the bill as it currently is written is that $50 billion in accumulated fees charged to the mega banks (insurance against losses) isn't big enough. The amount should be twice that. $100 billion is a drop in the bucket for the big banks; there would be no need to pass on that added expense to community banks. But if they do, then they should be smacked around just like the credit card banks who charge ridiculous fees if you open their statement envelope the wrong way.

 

[KissMy]

The financial meltdown has plenty of villians of both political persuasion. It's you people who continue to blame ONLY Obama, or, in this case, George Soros.

As was the case with Enron, nobody (even Bush) knew what they were up to until there was an audit. Likewise the financial giants on Wall Street. Although there were whiffs that some of the smaller houses like Bear-Stearns were playing casino type games with their assets, NO ONE foresaw the complete crash of all of them. Thus, when Obama accepted CAMPAIGN contributions from Goldman-Sachs, at that time, they were not seen as the bad guy. Nor was AIG or Lehman Brothers.

Obama gets the blame because with ACORN he pushed & sued banks & government into Affirmative Action Lending. In congress Obama voted against GSE regulation. Obama took over $5 million from these big banks & then voted to bail them out allowing them to shower themselves with $ billions in bonus. As candidate & President Obama promised to fix banks & wall street problems but instead held the country hostage for a year with health care while wall street execs dole out $billions in bonus payments. Obama has some of these corrupt wall street bankers in his administration affecting policy. Obama proposes some lame ass bill to allow continuous bailouts for wall street. The Wall Street Casino House will always win & the public will always loose. Just more rewarding bad behavior.

Clinton gets the blame for signing legislation causing all the rich to get richer, lier loans, & gambling with public money privatizing gains while public backs all the risk loss. Clinton pushed Affirmative Action Lending, increased GSE participation, & signed deregulation of banks & CFTC. He also had some of these corrupt wall street bankers in his administration affecting policy.

Bush did not push congress to do enough to stop this financial train wreck & in some cases made it worse. He also had some of these corrupt wall street bankers in his administration affecting policy. Bush signed the bailout.

 

[saveliberty]

There seems to be a conflict between this witchhunt and the "too big to fail" issue 0bama wants to resolve. There is already a great deal of consolidation in the banking Goldman Sachs does. The problem in selling investments that the company wants to fail needs to be addresses in my opinion.

The biggest advantage to 0bama is making someone other than himself a villian.

 

[MaggieMae]

Obama gets the blame because with ACORN he pushed & sued banks & government into Affirmative Action Lending. In congress Obama voted against GSE regulation.

With Acorn? WTF?! None of that is true, frankly.

Saying that Democrats (with Obama's help) killed the 2005 bill (S.190) is a flat-out lie. The bill made it out of committee in the Senate but was never brought up for consideration. At that time, Republicans had a majority in the Senate and controlled the agenda. Democrats never got the chance to vote against it or to mount a filibuster to block it.

By the time McCain signed on to the legislation, it was too late to prevent the crisis anyway. McCain added his name to the legislation when the housing bubble had already nearly peaked.

Here are the FACTS, which of course the JSN party people are trying to resurrect with their flood of articles and comments attempting to sideline the truth:

1) Republicans held the majority in Congress when this bill was introduced.

2)The bill was an attempt to privatize regulatory agencies. Hence, Democratic resistance to it. Hence, even Republicans voting against it.

3) The bill did nothing to address fraud and tighten oversight. Hence, Democratic resistance to it. Hence, even Republicans voting against it.

Text from the bill itself:

"Excludes the Federal Home Loan Banks from certain securities reporting requirements."
Additional lies being revived are the ones about Obama campaign getting finance and mortage advice from Frank Raines, Fannie Mae's old CEO. This too has been thoroughly debunked, but I bet it won't stop the desperate conservatives trying to make it stick it again. (In fact, a caller on C-Span parroted that "information" just this morning.)

snopes.com: Obama's Fannie Mae Economic Advisors
FactCheck.org: Are three former Fannie Mae executives "economic advisers" to Obama?

 

[MaggieMae]

There seems to be a conflict between this witchhunt and the "too big to fail" issue 0bama wants to resolve. There is already a great deal of consolidation in the banking Goldman Sachs does. The problem in selling investments that the company wants to fail needs to be addresses in my opinion.

The biggest advantage to 0bama is making someone other than himself a villian.

How is Obama a "villian" in the financial fiasco anyway? Because GS gave him a few million in campaign donations? Before the crash? Other than that, he approved the TARP loans and used some of it to also bail out GM. How is any of what HE did "villianous"??? If Obama were a true "villian" in this, he would be doing everything possible to cover up the Goldman-Sachs scandal going on as we speak, not pushing for the regulatory reform that would not allow such events to ever occur again.