After fits and starts, bank bill ready for passage

Jul 15, 2010 | Posted by: roboblogger | Full story: 2NEWS.TV

The Senate moved to a critical showdown vote Thursday on a sweeping overhaul of the nation's financial regulations, paving the way for Congress to send President Barack Obama a crackdown on banks and Wall Street that in some ways is tougher than what he sought.

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“Truth to Power!”

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Jul 15, 2010
 

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Why Obama Group Think Reform is just more of the Same

By DAVID BROOKS
Published: April 26, 2010

Between 1997 and 2006, consumers, lenders and builders created a housing bubble, and pretty much the entire establishment missed it. Fannie Mae and Freddie Mac and the people who regulate them missed it. The big commercial banks and the people who regulate them missed it. The Federal Reserve missed it, as did the ratings agencies, the Securities and Exchange Commission and the political class in general.

It’s easy to see why this happened. People who make it into the establishment work and play well with others. They are part of the same overlapping social networks, and inevitably begin to perceive the world in similar, conventional ways. They thrive in institutions where people are not rewarded for being cantankerous intellectual bomb-throwers.

Outside the establishment herd, on the other hand, there were contrarians who understood the bubble (which was the easy part) and who figured out how to take counteraction (which was hard).

One might have thought that one of the lessons of this episode was that establishments are prone to groupthink, and that it would be smart to decentralize authority in order to head off future bubbles.

Alas, we are living in the great age of centralization. Some Democrats regard federal commissions with the same sort of awe and wonder that I feel while watching LeBron James and Alex Ovechkin.

The premise of the current financial regulatory reform is that the establishment missed the last bubble and, therefore, more power should be vested in the establishment to foresee and prevent the next one.

If you take this as your premise, the Democratic bill is fine and reasonable. It would force derivative trading out into the open. It would create a structure so the government could break down failing firms in an orderly manner. But the bill doesn’t solve the basic epistemic problem, which is that members of the establishment herd are always the last to know when something unexpected happens.

If this were a movie, everybody would learn the obvious lessons. The folks in the big investment banks would learn that it’s valuable to have an ethical culture, in which traders’ behavior is restricted by something other than the desire to find the next sucker. The folks in Washington would learn that centralized decision-making is often unimaginative decision-making, and that decentralized markets are often better at anticipating the future.

But, again, this is not a Hollywood movie. Those lessons are not being learned. I can’t wait for the sequel.

http://www.nytimes.com/2010/04/27/opinion/27b...

“Truth to Power!”

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Jul 15, 2010
 

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Why didn't these clowns break up the Too Big to Fail banks?

Now we're going to have to Bail them out again in the Future!

“Truth to Power!”

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Jul 15, 2010
 

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Obama's Fannie and Freddie Amnesia

Taxpayers are on the hook for about $400 billion, partly because Sen. Obama helped to block reform.

By PETER J. WALLISON

It was in 2005 that the GSEs—which had been acquiring increasing numbers of subprime and Alt-A loans for many years in order to meet their HUD-imposed affordable housing requirements—accelerated the purchases that led to their 2008 insolvency.

If legislation along the lines of the Republican Senate committee's bill had been enacted in that year, many if not all the losses that Fannie and Freddie have suffered, and will suffer in the future, might have been avoided.

Why was there no action in the full Senate?

As most Americans know today, it takes 60 votes to cut off debate in the Senate, and the Republicans had only 55. To close debate and proceed to the enactment of the committee-passed bill, the Republicans needed five Democrats to vote with them.

But in a 45 member Democratic caucus that included Barack Obama and the current Senate Banking Chairman Christopher Dodd (D., Conn.), these votes could not be found.

Recently, President Obama has taken to accusing others of representing "special interests." In an April radio address he stated that his financial regulatory proposals were struggling in the Senate because "the financial industry and its powerful lobby have opposed modest safeguards against the kinds of reckless risks and bad practices that led to this very crisis."

He should know. As a senator, he was the third largest recipient of campaign contributions from Fannie Mae and Freddie Mac, behind only Sens. Chris Dodd and John Kerry.

With hypocrisy like this at the top, is it any wonder that nearly 80% of Americans, according to new Pew polling, don't trust the federal government or its ability to solve the country's problems?

http://online.wsj.com/article/SB1000142405274...

Obama = Maggot

“Truth to Power!”

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The U.S. government made to big to fail even bigger by giving Chase bank WAMU For virtually nothing.
Serious questions remain about why some banks were too big to fail and others not.

Perversely, the FDIC is their investment banker agent. Two mergers of questionable nature highlight the altered role of the Federal Deposit Insurance Corp (FDIC), which no longer protects bank depositors or their investors, but rather serves JPMorgan Chase.

When Bank of America merged with Merrill Lynch, a trend started, one that exposed private stock brokerage accounts. Officially they can be legally borrowed across subsidiary lines. The FDIC averted a failure of Merrill Lynch without the credit default implications.

The other event was more blatant, as the FDIC steered Washington Mutual out of bankruptcy failure and into the JPMorgan slaughterhouse. Inside its chambers, JPM gobbled up the WaMu deposits and benefited from ratio improvements. Senior bond holders were crushed, fully denied due process from bankruptcy.

The FDIC has become an ugly investment banker lookalike, serving JPM and not the US public. The FDIC owns a pitifully small $45 billion in funds available for bank bailouts, at June count.

When the dust clears a year or more from now, many multiples more will be necessary for many bank failures.

http://www.gold-eagle.com/editorials_08/willi...

“Truth to Power!”

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Jul 15, 2010
 

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Obama Economic Advisor's Sold Controversial Securities

By MATTHEW MOSK
March 8, 2010

When the White House announced last week it would be losing the services of Lewis A. Sachs, one of the president's top economic advisers, the reason given for Sachs's departure was that his work was largely complete.

Stocks and home sales are up, but the unemployment rate in 2009 is still high.

"He's leaving now that markets have stabilized and Secretary [Timothy] Geithner has had time to set up a permanent team," Treasury Department spokesman Andrew Williams said.

But Sachs's quiet exit, reported in a blog entry on the New York Times web site, comes without any apparent next move for the Wall Street veteran, except for what he told the Times was his desire for time to "catch up on some sleep."

Not factoring into the decision, Williams said, were recent reports suggesting Sachs's old employer could be the subject of a federal probe. A December Times report said federal officials were then in the early stages of an investigation into companies that sold a complex breed of securities known as synthetic collateralized debt obligations, or C.D.O.'s, and then made financial bets against them.

One firm that was selling C.D.O.'s before the housing bubble burst was Tricadia Inc. Sachs was a partner at Tricadia's parent company, Mariner Investment Group.

One Wall Street analyst interviewed by ABC News last week on the condition he not be identified, said he has been contacted recently by investigators about the controversial practice.

http://abcnews.go.com/Blotter/obama-economic-...

“Proud to be an American”

Since: Oct 09

Clarksville TN

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Only three Senate Republicans say they will vote for the bill during a key vote Thursday that will set the stage for final passage. But the bill bears the fingerprints of many others in the GOP who added their own touches over months of negotiations.

Gotta love it. Just like the Healthcare Bill it gets watered down, the Party of "No" gets accommodated and they still don't vote on it.
Seeking truth

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First, Health Care Reform, now this major legislation. The Democrats are governing despite the Republican obstructionists.
Seeking truth

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The laughing liberal wrote:
Why didn't these clowns break up the Too Big to Fail banks?
Now we're going to have to Bail them out again in the Future!
Because Republicans are against it and the bill is barely passing with the approval of a few Republicans are on board. You should vote for Democrats in November if you want a stricter law, but you don't seem to want regulations. It's hard to keep track of your hypocrisy.

“Truth to Power!”

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Seeking truth wrote:
First, Health Care Reform, now this major legislation. The Democrats are governing despite the Republican obstructionists.
Unemployment has RISEN under the Scumbag-0-crats reign of terror.

Banks have become even BIGGER under the Scumbag-0-crats reign of terror.

A Double-Dip Recession is awaiting us in 2011 under the Scumbag-0-crats reign of terror.

The Budget Deficits are 3X of Bush's worst under the Scumbag-0-crats reign of Terror.

The National Debt is RISING SUBSTANTIALLY FASTER under Scumbag-0-crats reign of Terror.

Sorry but your rotten party is doing more Harm than Good!
Seeking truth

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Legal_American wrote:
Only three Senate Republicans say they will vote for the bill during a key vote Thursday that will set the stage for final passage. But the bill bears the fingerprints of many others in the GOP who added their own touches over months of negotiations.
Gotta love it. Just like the Healthcare Bill it gets watered down, the Party of "No" gets accommodated and they still don't vote on it.
Imagine the downfall of our country if Republicans, Teabaggers gain seats in November.
LOL

United States

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Lets see.....how many jobs did this bill create for the 25 million unemployed Americans.....

oh yeah, jobs for Americans is not historic enough for obama.....

“Truth to Power!”

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Jul 15, 2010
 

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Seeking truth wrote:
<quoted text>
Imagine the downfall of our country if Republicans, Teabaggers gain seats in November.
FEAR is all you Scumbag-0-crats have to try since YOU HAVE NO ACCOMPLISHMENTS to speak of that don't make matters Worse!

Face it, Bush Repubs were bad, Tea Party is sending them Packing when possible but Obama & Dems have PROVEN MUCH WORSE.
PooPoo Platter

Palatine, IL

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LOL wrote:
Lets see.....how many jobs did this bill create for the 25 million unemployed Americans.....
oh yeah, jobs for Americans is not historic enough for obama.....
LOL!!!

And here, Spam Boy switches avatars from "Laughing Liberal" to "lol"

When he switched to "Wartime" he's waging war! LOL!!!

“Truth to Power!”

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Jul 15, 2010
 

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Seeking truth wrote:
<quoted text>
Because Republicans are against it and the bill is barely passing with the approval of a few Republicans are on board. You should vote for Democrats in November if you want a stricter law, but you don't seem to want regulations. It's hard to keep track of your hypocrisy.
I want regulations that work, eliminate Too Big To Fail, but that will not kill the economy.

This is NOT what Scumbag-0-crats are Proposing in the Bill Obama is so eager to sign.

Heck, it sets up "Commissions" to write Most of the New Regulations! These Commissions are not elected or Accountable! It's another bad sign that Obama is INCOMPETENT & this Congress is the WORST in US History.

“Truth to Power!”

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PooPoo Platter wrote:
<quoted text>
LOL!!!
And here, Spam Boy switches avatars from "Laughing Liberal" to "lol"
When he switched to "Wartime" he's waging war! LOL!!!
LMAO! Are you hearing "Voices" again poopoo?

Bwahahahaha! What an idiot!

“Truth to Power!”

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HUD Pushes Expansion Of Home Loan Program

By Judith Havemann
Washington Post Staff Writer
Wednesday, February 18, 1998; Page A19

When President Clinton was accepting plaudits for forwarding a balanced budget to Congress two weeks ago, housing activists were protesting at federal buildings around the country about an obscure provision in the budget appendix.

...In the 1999 budget plan, HUD proposes offering home buyers popular Federal Housing Administration (FHA) loans on more expensive homes than had previously been allowed. The amount that can be borrowed would be raised from as low as $86,317 in some areas –$170,363 in the Washington area – to $227,150 across the country. This would mean that qualified buyers with incomes as high as $80,000 might now be able to qualify for an FHA loan, although HUD says it is aiming primarily at families making $40,000 to $50,000 a year.

The loans require lower down payments than many conventional mortgages. They can cover closing costs, allow more flexibility in assessing credit ratings, and permit home buyers to use gifts from family members and others to make down payments.

HUD says that the new higher limits could help up to 3 million more Americans over five years become homeowners. And by broadening HUD's loan portfolio, the overall risk to the government would be reduced..."

Lined up against them is a group of strange bedfellows: the Mortgage Insurance Companies of America, community bankers, neighborhood activists, Fannie Mae and the conservative Heritage Foundation.

The opponents argue that higher-income home buyers are already well served by the industry. And those who aren't able to get a conventional mortgage may not be a good credit risk for the government.

The department's arguments make little sense to Gale Cincotta, the longtime Chicago activist leading a crusade against raising the loan limits. "HUD wants to cover up the problem by giving out more loans. We think they need to fix the problem," Cincotta said.
"We want to make sure that HUD doesn't issue loans that people can't afford. When people lose their property, the buildings are empty and taken over by drug dealers," she said. "Whole neighborhoods have been ruined by HUD."

http://www.washingtonpost.com/wp-srv/politics...

HUD is back at it under the Maggot's direction.

“"I'm A Great American!"”

Since: Sep 08

Obama Nation! USA! USA!

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The laughing liberal wrote:
<quoted text>
LMAO! Are you hearing "Voices" again poopoo?
Bwahahahaha! What an idiot!
Not voices, Spam Boy. Only you, and you alone.

A single, solitary, little mediocrity with an internet connection & a computer. Maybe you figured out truth and reality are not your friends, maybe you are oblivious to how foolish you are.

People can decide for themselves: I say the avatars "Laughing Liberal", "the messiah", "wartime", "lol" are spam authored by a single author who's not bright enough to pull the scam off. Read his offerings carefully & see if you agree.

Conservative principles carry the day? LOL!!! You know that really isn't true, otherwise why would you need the deception? If YOU are a conservative, turn out the lights; Reagan AND his revolution are dead!

It amuses me to shine light on your spamming, but mostly I pity you. It must be pathetic to think you cannot present yourself to people as you really are.

Fear not, I won't press too hard and try to break through your denial; you must choose to be healthy and truthful or it's never going to happen. Find a good psychologist, counselor, clergy person and get some help. It's never too late to be well...
Seeking truth

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Jul 15, 2010
 

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The laughing liberal wrote:
<quoted text>
I want regulations that work, eliminate Too Big To Fail, but that will not kill the economy.
This is NOT what Scumbag-0-crats are Proposing in the Bill Obama is so eager to sign.
Heck, it sets up "Commissions" to write Most of the New Regulations! These Commissions are not elected or Accountable! It's another bad sign that Obama is INCOMPETENT & this Congress is the WORST in US History.
Haaaaa haaaaaa, save your crocodile tears. The bill is probably being signed by the president, as you continue to post your ineffective drivel. Another victory for America. Another failure for Wall Street Republicans, Teabaggers.
Ho Lee Schitt

Lambertville, NJ

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From what I read in the WSJ today the 'reform' bill has been gutted by special interests and offers the average person no protection at all from Wall Street sociopaths and dishonest bankers. Not surprising though considering Obama has filled his administration with Wall Street insiders who are looking out for number 1! Our government has dropped all pretense of serving the interests of the average citizen.
Seeking truth

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LOL wrote:
Lets see.....how many jobs did this bill create for the 25 million unemployed Americans.....
oh yeah, jobs for Americans is not historic enough for obama.....
Every dollar of unemployment payments produces $1.30 in benefits to our economy. The Republicans should extend unemployment payments to these people in need because it is the right thing to do and will stimulate the economy. BTW this is a bank bill, not a jobs bill. Stay focussed on the topic of the thread.

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