Senate passes Wall Street Reform

[Chris]

Senate passes sweeping Wall Street reform - Business - Stocks & economy - msnbc.com

WASHINGTON — Congress passed a sweeping overhaul of America's financial regulations Thursday, securing for President Barack Obama his third major, hard-fought legislative victory.

Obama said he will sign the bill next week.

"I'm about to sign Wall Street reform into law, to protect consumers and lay the foundation for a stronger and safer financial system, one that is innovative, creative, competitive and far less prone to panic and collapse," the president said at the White House.


The bill has been Obama's top domestic priority after the passage of health care legislation and his early victory in setting up a nearly $800 billion fund to pump life into an economy hit with the deepest downturn since the Great Depression of the 1930s.

The oil well is capped, and Wall Street reform passes.

This is a great day for America.

 

[Oddball]

You don't even know what's in the bill, Monica.

 

[Oscar Wao]

It's ok. If it mentions "health care/insurance," "energy/environment," "Wall Street," "labor," or any such terms, he gets all orgasmic.

 

[sparky]

Forcing 'skin in the game': Firms that sell mortgage-backed securities must keep at least 5% of the credit risk, unless the underlying loans meet new standards that reduce risk.

yeah, that'd keep me honest......

 

[Chris]

You don't even know what's in the bill, Monica.

Your posts are nothing but insults.

 

[Chris]

What's in it for you?

What's in the final Wall Street reform bill - Jul. 15, 2010

Immie

Nice synopsis.

 

[Flopper]

Yay...more legislation from people who probably don't even know high school level economics!

You're kidding, right?

I mean you don't actually believe what you said, do you?

Or do you mean that you DO know High School level economics and since the Democrats don't go by what you learned in H.S., you think that they don't even know economics to that level?

I think that the Dems are a bit beyond you when it comes to economics...and quite a few other things.

Let me explain it to you more slllooowwwwlllyyy...

These people are economic ignoramouses, and they're actually trying to govern our country in economic and financial matters...in contrary to the basics of economics.

Congressman are not economist, there're politicians. Few congressman read all these bills. They have a staff that reads bills and suggest changes. A House Member employs an average of 14 staff; the Senate average is 34. They also use consultants. So when a congressman says he has read a bill, he has skimmed the bill and has been briefed by his staff or consultants.

 

[mudwhistle]

Senate passes sweeping Wall Street reform - Business - Stocks & economy - msnbc.com

WASHINGTON — Congress passed a sweeping overhaul of America's financial regulations Thursday, securing for President Barack Obama his third major, hard-fought legislative victory.

Obama said he will sign the bill next week.

"I'm about to sign Wall Street reform into law, to protect consumers and lay the foundation for a stronger and safer financial system, one that is innovative, creative, competitive and far less prone to panic and collapse," the president said at the White House.


The bill has been Obama's top domestic priority after the passage of health care legislation and his early victory in setting up a nearly $800 billion fund to pump life into an economy hit with the deepest downturn since the Great Depression of the 1930s.

The right will say Obama has accomplished nothing and then on another day they will say Obama has signed into law the biggest government efforts in ages.

Obama accomplishes nothing as he accomplishes very big things. The Right Wing Noise Machine is Schizoid

They like to call it a "failed Presidency" and compare it to that of Jimmy Carter's but look at what's been accomplished with less than 2 years in office. Far short of ideal, but better than anything Carter or even Clinton achieved.

If he does last only one term, he will have left a lasting impression.

That is an understatement.

 

[Mr. Shaman]

Yay...more legislation from people who probably don't even know high school level economics!

I hate to be the one to inform you, but.....BUSHCO is GONE!!! ​

"Congress gave final approval Thursday to the most ambitious overhaul of financial regulation in generations, ending more than a year of wrangling over the shape of the new rules and shifting the government's focus to the monumental task of implementing them.

The final Senate vote, which came almost two years after the nation's financial system nearly collapsed, was a significant legislative victory for President Obamahttp://www.washingtonpost.com/wp-dy...7/15/AR2010071500464.html?hpid=topnews&sub=AR, who had pledged to rein in the reckless Wall Street behavior behind the crisis and to right the government regulation that failed to prevent it.

The massive bill establishes an independent consumer bureau within the Federal Reserve to protect borrowers against abuses in mortgage, credit card and some other types of lending. The legislation also gives the government new power to seize and shut down large, troubled financial companies -- like the failed investment bank Lehman Brothers -- and sets up a council of federal regulators to watch for threats to the financial system.

Under the new rules, the vast market for derivatives, complex financial instruments that helped fuel the crisis, will be subject to government oversight. $hareholder$, meanwhile, will gain more say on how corporate executives are paid."

 

[editec]

[Mr Volcker]

... describes as the overhaul’s strengths — particularly the limits placed on banks’ trading activities — he still feels that the legislation doesn’t go far enough in curbing potentially problematic bank activities like investing in hedge funds.

“The success of this approach is going to be heavily dependent on how aggressively and intelligently it is implemented,”

source

Ya think?!

Volckert, who I think we can safely assume understands this bill and how it will play out in the world, fairly well, thinks it doesn't go far enough to really regulate banking.

That is too bad.

Political compromise tends to water down effective regulation.

One of the problems with the democractic process in a Republic, really.

And, conversely, also, one of its strengths.

 

[Immanuel]

You're kidding, right?

I mean you don't actually believe what you said, do you?

Or do you mean that you DO know High School level economics and since the Democrats don't go by what you learned in H.S., you think that they don't even know economics to that level?

I think that the Dems are a bit beyond you when it comes to economics...and quite a few other things.

Let me explain it to you more slllooowwwwlllyyy...

These people are economic ignoramouses, and they're actually trying to govern our country in economic and financial matters...in contrary to the basics of economics.

Congressman are not economist, there're politicians. Few congressman read all these bills. They have a staff that reads bills and suggest changes. A House Member employs an average of 14 staff; the Senate average is 34. They also use consultants. So when a congressman says he has read a bill, he has skimmed the bill and has been briefed by his staff or consultants.

More than likely he has read a synopsis like I provided above by his party and been told how to vote by the leaders of the party.

Immie

 

[DiamondDave]

Funny how the left wingers rally around this bill purely out of their hyper partisanship... not a single one has a clue what is contained within the bill... but because the DEM's pushed it through and Obama said he would sign it, it HAS to be good

It is a shame that you people actually vote

 

[editec]

Funny how the left wingers rally around this bill purely out of their hyper partisanship... not a single one has a clue what is contained within the bill... but because the DEM's pushed it through and Obama said he would sign it, it HAS to be good

It is a shame that you people actually vote

Hey I object.

I have a clue what's in it.

You?

 

[Big Fitz]

Yay...more legislation from people who probably don't even know high school level economics!

I hate to be the one to inform you, but.....BUSHCO is GONE!!! ​

"Congress gave final approval Thursday to the most ambitious overhaul of financial regulation in generations, ending more than a year of wrangling over the shape of the new rules and shifting the government's focus to the monumental task of implementing them.

The final Senate vote, which came almost two years after the nation's financial system nearly collapsed, was a significant legislative victory for President Obamahttp://www.washingtonpost.com/wp-dy...7/15/AR2010071500464.html?hpid=topnews&sub=AR, who had pledged to rein in the reckless Wall Street behavior behind the crisis and to right the government regulation that failed to prevent it.

The massive bill establishes an independent consumer bureau within the Federal Reserve to protect borrowers against abuses in mortgage, credit card and some other types of lending. The legislation also gives the government new power to seize and shut down large, troubled financial companies -- like the failed investment bank Lehman Brothers -- and sets up a council of federal regulators to watch for threats to the financial system.

Under the new rules, the vast market for derivatives, complex financial instruments that helped fuel the crisis, will be subject to government oversight. $hareholder$, meanwhile, will gain more say on how corporate executives are paid."

And so's the constitution apparently. Talk about throwing out the baby with the bathwater.

 

[Oddball]

You don't even know what's in the bill, Monica.

Your posts are nothing but insults.

Well, to you, yes....That's all your vapid posts deserve in response.

 

[topspin]

Tea bagger and wing nit crying is awesome. The stock market will boom over the next to years. Can't wait for the continued croackadile tears. Thanks cons

 

[Valerie]

What's in it for you?

What's in the final Wall Street reform bill - Jul. 15, 2010

Immie

>>

Here's CNNMoney.com's breakdown of key provisions that aim to protect consumers, prevent firms from getting too big to fail and to crack down on risky bets that leave taxpayers on the hook.


Consumer protection

Creating a consumer agency: Establishes an independent Consumer Financial Protection Bureau housed inside the Federal Reserve. Fees paid by banks fund the agency, which would set rules to curb unfair practices in consumer loans and credit cards. It would not have power over auto dealers.

Credit scores: All consumers have been able to get one free credit report a year from the credit rating agencies. But the bill would also allow a consumer to get an actual credit score along with a report.

Interchange fees: Lawmakers want the Fed to crack down on debit card swipe fees, which retailers pay to banks to cover the operational cost of transferring money. The Fed could cap the fees and make them more reasonable and proportional.
0:00 /2:30Behind the derivatives reform debate

Banning 'liar loans': Lenders would have to document a borrower's income before originating a mortgage and verify a borrower's ability to repay the loan.

Mortgage help for unemployed: Unemployed homeowners with good credit would be eligible for low-interest loans to help them avoid foreclosures. The bill would spend $1 billion on such relief, using funds that had been directed for Troubled Asset Relief Fund bailing out the financial system.

Fixed-equity annuities: Prohibits tougher federal rules on life insurance products, in which customers pay a lump sum upfront in exchange for monthly income over time, pegged to an index. The Securities and Exchange Commission had been gearing up to step in and start requiring more disclosure for these products, often sold to seniors, that are currently regulated by state insurance commissioners. Lawmakers decided to stop the SEC from tougher federal regulation.
Too big to fail

New oversight power: Creates a new 10-member oversight council consisting of financial regulators to look out for major problems at financial firms and throughout the financial system. The Treasury Secretary gains a key role in enforcing tougher regulations on larger firms and watching for systemic risk. The council also has veto power over new rules proposed by new consumer regulator.

Unwinding powers: Gives the FDIC new powers to take down giant financial firms in the same way it takes down banks. Banks would be taxed to reimburse the federal government for the cost of resolving these firms after a failure occurs.

Wall Street reform bill ready for final votes

Breaking up banks: Gives regulators strengthened powers to break up financial companies that have grown too big, but only if the firms threaten to destabilize the financial system.

Checking on the Fed: Allows Congress to order the Government Accountability Office to review Fed activities, excluding monetary policy. Audits would be allowed two years after the Fed makes emergency loans and gives financial help to ailing financial firms.

Forcing 'skin in the game': Firms that sell mortgage-backed securities must keep at least 5% of the credit risk, unless the underlying loans meet new standards that reduce risk.

Financial system fees: Banks would pay more in premiums for deposit insurance to the Federal Deposit Insurance Corp., which would cover some $5.7 billion of the cost of implementing the Wall Street reform bill. The rest of the tab, $11 billion, would be offset with untapped dollars authorized for the 2008 federal bailout fund, the Troubled Asset Relief Program.

Risky bets

Regulating derivatives: Attempts to shine a light on complex financial products called derivatives that many blame for bringing down American International Group (AIG, Fortune 500) and Lehman Brothers. Would force most derivatives to be bought and sold on clearinghouses and exchanges. Some derivatives, including those traded by agriculture companies and airlines to mitigate risk, would still be unregulated.

Spinning off swaps desks: Big banks that want to engage in nontraditional bets, such as on mortgage products or certain commodities, would have to spin off their swaps divisions.

Reining in risky bets: Limits giant Wall Street banks from making trades on their own accounts, although with a long lead time and opportunities for delays up to seven years. While the original proposal would have banned banks from owning hedge funds, the bill would allow banks to sink up to 3% of capital into hedge funds or private equity funds.

Improving credit ratings: Agencies that rate securities must disclose their methodologies. The Securities and Exchange Commission would have to study a way to find an independent way to match credit rating agencies with financial firms seeking ratings. After two years, they'd have to implement such a process, or appoint a panel to independently match ratings agencies with firms that need securities rated.

Curbing executive pay: The bill would also impose new rules for how all publicly-traded companies, not just banks and other financial firms, pay top executives. Shareholders will be given a nonbinding advisory vote on how top executives are paid while in office. Shareholders also get a nonbinding advisory vote on executives' outsized severance payments, or so-called "golden parachutes."

The new rules would also beef up oversight of pay practices within the financial industry, which some critics have suggested helped fuel the crisis by encouraging workers to place risky bets. The bill, for example, would require industry regulators to draft their own set of rules aimed at eliminating risky pay practice among banks and other financial firms

 

[Skull Pilot]

Financial Reform's Loopholes - The Daily Beast

Why should anyone expect some paper-pushers in Washington to prevent something as complicated as the next great financial meltdown when they couldn’t stop Bernie Madoff's Ponzi scheme?

 

[DiamondDave]

Funny how the left wingers rally around this bill purely out of their hyper partisanship... not a single one has a clue what is contained within the bill... but because the DEM's pushed it through and Obama said he would sign it, it HAS to be good

It is a shame that you people actually vote

Hey I object.

I have a clue what's in it.

You?

Yep.. and shaking my head at the creation of new 'councils', more government expansion and tendrils into firms and banks, etc... and I have just scratched the surface...

 

[Soggy in NOLA]

Victory? Well, I guess that's all that matters.. Obama got his victory.

And of course.. Fannie Mae and Freddie Mac get to chug along as usual... no problems there. Did we at least get a new Czar out of this?