Barney Frank is putting together one hell of a Christmas present for the financial-services industry.
The head of the House Financial Services Committee said he plans to push through a whole sack full of new regulations changing the way Wall Street does business, or at the very least trying to change the way Wall Street does business, by next month. Committee debate on the proposals begins tomorrow.
While Congress and the administration have done basically nothing this year to respond to the alleged systemic problems underlying the financial crisis, Frank aims to fix everything in a holiday flurry of activity. Among the measures the man from Massachusetts expects to pass are:
- The much-ballyhooed new consumer financial-protection agency (Frank even has a potential leader of the new regulator in mind: TARP overseer and Harvard Law professor Elizabeth Warren);
- new rules covering derivatives;
- a new fund—paid for by the biggest financial firms in advance—to unwind failing nonbank firms, as well as the power to liquidate those firms if they become (you guessed it) “too big to fail;”
- a reduction in the Federal Reserve’s power to lend to whoever it wants whenever it wants;
- and a new Financial Services Oversight Council headed by the Treasury secretary which would decide when, exactly, the invisible hand needs a little government handout.
“No more Fed to AIG, no more Fed to Bear Stearns,” Frank said of the measure to restrain the Fed. Surprise, surprise: The Fed is not happy about that, with the Kansas City branch warning that giving more power to the Treasury “could lead to delays or second-guessing of supervisory recommendations and greater political interference.”
Barney’s not too interested in discretion, consigning to the trash an agreement with the Obama administration to keep those firms deemed a systemic risk a secret.
“The way an institution will be publicly identified as systemically important is the day it is hit with severe, stricter constraints,” Frank warned.
Frank Seeks House Vote in December on Financial Measures [WSJ]
Frank Says Measure Will Require Publishing Names of Risky Firms [Bloomberg]
Posted by guest , Nov 03, 2009 5:01PM
BF smokes pole.
Posted by Anal_yst , Nov 03, 2009 5:03PM
I didn't understand it the 1st time, and I don't understand it now. You're basically going to make the firms that DON'T fail, pay for the one's that do?
What sort of f*cking batsh*t crazy bizarro world are we living in? Where is that f*cker Ashton Kutcher? Is he controlling the Bawney Fwankth animatronic? Seriously, are we being punked?
Posted by guest , Nov 03, 2009 5:04PM
Greg
I'm going to turn your refrigerator down from 4 to 3, so that your milk is never quite as cold and refreshing as you would like and the texture of your deli meats degrades a day or two earlier than you expect.
Not Jeff Macke but a fan of his work
Posted by guest , Nov 03, 2009 5:06PM
The way to fix the financial system is to eliminate excessive risk-taking. The way to eliminate excessive risk taking is to eliminate all risk.
I wrote a letter to the government telling them that risk has no place in our financial system, that returns should be based on a general fairness doctrine. Anyone who takes risk should have to forefeit the profit they make in doing so to those that, prudently, don't take any.
I am awaiting a response and my eventual appointment to a position of great authority in The Administration.
--Mark Klein, MD
Posted by guest , Nov 03, 2009 5:12PM
Elizabeth Warren is sensy.
Posted by Critic , Nov 03, 2009 5:12PM
Great - just what Wall Street needs, a turkey-necked ass-puncher setting up new rules.
Posted by Private , Nov 03, 2009 5:12PM
Looks like BF is sitting on anohter upside down chair.
Posted by guest , Nov 03, 2009 5:21PM
great tags
Posted by guest , Nov 03, 2009 5:29PM
Anal_yst,
Get with the fking program. From cradle to grave. If you do the right thing or take care of your business, then you must make up for those who don't or refuse to.
Right now, the Shaz is having his wages garnished so that Greg can take an online course in basic humor and sensy ideas from the University of Phoenix.
Posted by guest , Nov 03, 2009 5:30PM
i'm going to fight you greg
Posted by guest , Nov 03, 2009 5:37PM
Jon
Never rub another man's rhubarb. You douche bag
Greg's mom
Posted by guest , Nov 03, 2009 5:40PM
Is that photo a still from JOMG?
Posted by guest , Nov 03, 2009 5:48PM
who is Mark Klein, MD?
Posted by Anal_yst , Nov 03, 2009 5:55PM
@9
Again, how silly of me to expect any semblance of logic, reason, etc, etc to be found in anything coming out of DC (or Barney Fwank - ew)
Posted by guest , Nov 03, 2009 6:01PM
SHAZANUS is here!
Posted by guest , Nov 03, 2009 6:22PM
@13 - He's John Galt's 2nd cousin, twice removed.
Posted by Peanut Gallery Member , Nov 03, 2009 6:25PM
Nice pic (no homo!) and way to go with the bullets. I'm starting to warm to you, Shazam.
Posted by guest , Nov 03, 2009 6:36PM
Pic was taken just after Jeffrey Chiang turned down Barney's offer of a summer internship.
Posted by Teri Buhl , Nov 03, 2009 6:52PM
How you can not love Jon when he prints great photos like this?
He's a sharp editor with tons of Street experience and is likely to win over smart readers if you give him time.
Come on I'd bet my serious long-form byline... he'll make you laugh while enlightening the reader on a thing or two.
Posted by guest , Nov 03, 2009 7:18PM
isn't this the same scary muppet who, in spite of all the damage done by the CRA and the freddie/fannie lending requirements wants to INCREASE then an put a group from the CFPA who have been "trained in community development" in charge of maintaining lending standards?
jesus h christ on a bike, if jefferson had known we'd wind up governed by this assclown, he'd have shot himself in the head rather than set this up...
Posted by guest , Nov 03, 2009 7:30PM
Have a vewy mewy chwissmus.
- Your faggot congressman
Posted by guest , Nov 03, 2009 7:53PM
Is Jon really Greg?!
Posted by guest , Nov 03, 2009 8:00PM
@13
To answer your question:
The biggest load of self important shit since Elizabeth fucking Dole.
Posted by guest , Nov 03, 2009 8:06PM
@13
MARK KLEIN, M.D. IS A SHITHEEL!
Posted by guest , Nov 03, 2009 8:22PM
As far as TGFD is concerned, anything Uncle Sam does to...
1) F*ck-up the derivatives markets.
2) Restrain the Federal Reserve.
3) Separate commercial banks, investment houses, and insurance cos.
4) F*ck-up hedge funds & PE firms.
5) Pull down Elizabeth Warren's panties to show us that magnificent ass.
is all okay with TGFD (especially 5).
The Guy from Delaware
Posted by guest , Nov 03, 2009 10:15PM
Barney sure doesn't look very gay in that picture.
Posted by guest , Nov 03, 2009 10:24PM
@22 Of course Jon is really Greg. And Greg is really Jon. It was obvious the knee-jerk Greg-bashers would trigger a name change. It had gotten to the point where they were bashing him faster than they could possibly have read his post. They must have had "Post Greg Bash" macros set up on their computers.
Posted by guest , Nov 03, 2009 11:11PM
P.S. I'm still horny
-BF
Posted by guest , Nov 04, 2009 1:57AM
His glasses approach a 180 degree angle for the first time in his life in that pic.
Posted by guest , Nov 04, 2009 7:59AM
Unbreakable union of freeborn republics Great America has welded forever to stand! Created in struggle by will of the peoples United and mighty, our American land!
Glory to you, our free Motherland, Bulwark of people, in brotherhood strong! Oh! Party of Obama! The strength of the people. To Communism's triumph lead us on!