The failure of the Bush administration to regulate the banking, financial and insurance industries is an uphill battle for the Obama administration. Now that banks have skirted a financial meltdown they feel emboldened to also fight government regulations.
Although the G-20 Summit in March demanded stricter US banking policies regarding the phony credit default swaps which brought the world economy to its knees Wall Street is prepared to fight regluatory policies to eliminate the possibility of it happening all over again.
JP Morgan, AIG, BOA and Goldman Sacks have created a lobbyist group called CDS Dealers Consortium which comes after they all accepted bailout money from the US treasury. Taxpayers dollars were poured into the banks to give them liquidity and a chance to fight off bankruptcy all around however the banks are hiring high powered brokers to fight new legislation and influence politicians.
Timothy Geithner plans to make the trading of derivatives less free and with more accounting and banks of course would rather not disclose privately managed clearinghouse transactions. Geithner’s plan is flawed because it leaves loopholes for the banks to start trading phony paper all over again.
Congress would have to pass such new laws and under scrutiny very restrictive laws need to be in place to prevent a world financial disaster of mega proportions which of course affects other countries.
It appears the banks and Wall Street want to go back to -the good old days and start their ponzi schemes all over again due to the enormous gains these bank CEO’s all made- they will ultimately try it again.
TAGS: Wall Street Ponzi Schemes Continue, Geithner plan flawed, Obama Administration, New banking regulations, Congress, CDS Dealers Consortium, Goldman Sacs, BOA, AIG, Wall Street schemes, G-20 Summit.