July 24, 2010 The Dodd Frank Bill Lacks Deterrents for Wall Street CEO’s
The financial reform bill just passed in Congress is lacking in teeth, lacking in strength and for CEO’s there is no jail time or deterrents. As we see from Goldman’s 500 million dollar fine, it was a slap on the wrist which has no real teeth other than a debt in Goldman’s rich bank accounts.
The lawmakers forgot the most important part which is punitive damages and deterrents to make the gamblers think twice. The Ponzi schemes will continue simply because they can devise greater hidden clauses, obscure information and bite taxpayers once again without any personal penalties except a fine.
There will be no reform bill until these bozo’s go to jail and do some hard time for 20 years, then you will see Wall Street clamped on for real reform.
There appeared to be nothing more rewarding to those who lost millions and their investments to Bernard Madoff than to see him in handcuffs, in an orange jumpsuit and doing some hard time in jail.
Did Obama go easy on Wall Street for campaign donations?
There is no better reform than justice and that means punishment for banks as they are measured so succinctly to the average citizen. The reform means “change” and what is missing is a clear outline of further criminal penalties to any stockbroker, CEO, investment firm who wishes to defraud Americans or foreign banks again.
The American taxpayers are in no mood to see their money wasted in running the Obama administration when they come out with wimpy legislation that has no back up, no deterrents and no teeth to stand up in court. After seeing the billions of taxpayers dollars being given out on bonus money to executives of the Wall Street banks, Americans want to puke at any whimsical laws made up by likes of Tim Geightner ( Pee Wee Herman) for his friends on Wall Street who were his former employers. What Obama has effectively accomplished is a slap on the hand to Wall Street most likely to continue his campaign contributions for 2012 and a toothless bill.
Scott Brown Passes on 19 Billion to his Grandchildren
In fact Barney Frank and Chris Dodd actually removed a 19 billion dollar bank tax to garner Scott Brown’s vote for the bill, and they did somehow manage to relieve the banks from a tax and a source of revenue for the coffers.
Why Scott Brown would want less taxes for banks is also strange since his platform was greater power for the people in government – not big banks but he did the exact opposite. It seems the banks got to Brown and convinced him otherwise. Yes it seems that Darth Vader the savior of Mass., voters rescued us from a fate worse than death- he got the banks a tax break!!
Brown must be proud of the way he held the American people hostage for his own self centered gains and we need to investigate which banks are contributing to his campaign funds. Scott remained faithful to his constituents namely the banks such as: State Street Corp., Mass Mutual and Bank of New York Mellon who all saved money thanks to Scott Brown. Ted Kennedy will have already turned over in his grave. Scott Brown chose to pass that 19 billion on to his grandchildren and again saved the banks from a higher tax on profits.
The 2,300 page bill written mostly by Chris Dodd the Democrat from Connecticut who said ” no one will know until this is actually in place how it works”. How about that for legislative experience? It affects people’s lives more than Wall Street reforms and the regulators still failed to accomplish the goal of protecting the Financial health of the nation’s money system. Dodd will not have to answer to this mess since he is retiring finally
The Financial Reform bill establishes a Financial Stability Oversight Council (FSOC) which is composed of some regulators who will watch for risks to the financial system. The council is said to have unlimited powers to even sell off or close pieces of banks and investment firms. The bill also establishes a permanent bailout capacity in the FDIC which will use tax payers dollars to dismantle large firms that are too big to fail.
Again we have no assurances that the ponzi schemes will not continue even today after the reform bill is passed. Secondly, if you need provisions such as in the FSOC to break up a private bank or institution there will be other investors affected and lawsuits will surely be the result.
Fannie Mae and Freddie Mac
The problems of Fanny Mae and Freddie Mac have not been addressed in this bill which received the greatest amount of bailout money of all the nefarious lenders. This is another failure of the Financial Reform bill of 2010 – it does not cover all the mistakes of the 2008 meltdown.
Republicans Had No Hand in Financial Reform Bill
It was ludicrous to believe that Republicans would support financial reform when they had played such a major role in deregulating Wall Street banks and prefer the Wild Wild West of yesterday where gambling and ponzi schemes would continue to rule the financial system. The vision of Republicans backing up Wall Street and encouraging another meltdown has just scored them a loss of credibility in the polls.
We do know that the Republicans did not approve of the bill so there must be some good in it since most of their campaign funding comes from Wall Street and this is why they tried to block the bill. The opposition had nothing to do with protecting the financial system but mostly again it was about politics. On the one hand leading Republicans did call for financial reform, but had little or nothing to offer as to regulating Wall Street.
This is one regulation that people voted for, this was one place for Obama to show some stuff but he failed again to regulate the bank players that put 350 million people’s lives on hold for the next five years. Another meltdown will surely bankrupt the United States of America – as we knew it.
Reforming the Financial Reform Bill
Editors Note: Already there are groups setting out to reform the Financial Reform Bill that failed with their legion of lobbyists to cut the hurt and soften the blow of regulations. If Obama does not appoint Elizabeth Warren as the head of this commission to ensure the rules are applied, this legislation is as wimpy as those who wrote it.