The populist rabble-rousing on Capitol Hill is getting ominous.
“I see it as one of our potentially last chances to get control, particularly of financial institutions in their mega-forms, before they take over the world,” Rep. Paul Kanjorski said of the banking regulation reforms proposed by the White House and congressional leaders. But for Kanjorski and Rep. Earl Perlmutter, both Democrats, the bill doesn’t nearly go far enough.
Both men, whose districts include few, if any, Fortune 500 companies, want to undo the deregulation enacted a decade ago, which demolished the barriers between commercial and investment banking, among other rules. Perlmutter’s “light-touch” option would simply allow whatever will be regulating banks to require hybrid commercial-investment banks to keep certain capital reserves. Kajorski’s more draconian proposal would give regulators the preemptive authority to place limits on the size, complexity or risk of any financial company that presents a systemic risk to the economy.
The proposed amendments instantly fired a furious, and equally hyperbolic, response from the financial community. Rob Nichols of the Financial Services Forum said “preemptively breaking up large financial institutions is very ill-advised.” But the prize goes to the Partnership for New York City, which warns that if the amendments become law, the Big Apple is doomed to become a provincial backwater in a third-world country.
In a letter [http://www.scribd.com/doc/22479759] to city’s congressional delegation, Democrats to a man and woman, the Partnership says the Kanjorski-Perlmutter rules would “diminish America’s standing as a preeminent, global financial center and inflict particular damage on New York.”
Curbing Size of Big Firms [WSJ]
NY CEOs Push Congressional Delegation to Resist New Banking Regulation [NYO]
first!
have none of these people heard of what happened to the U.S.S.R.?
It’s about time…. I don’t think it will pass. I got the feeling the “intelligence” dept of our overlord (Lord Jewie Blankfein”) have dirt on all these elected whore douches.
This mess can only be fix if we had real american men -like James Jesus “Kingfisher” Angleton or Richard Helms seeing thru the deception going on.
What is going on the classic pattern that has led to Latin America being the way it is. A few buying & obfuscating justice.
Do you Wall Street boys know a little history. Which Latin america country has had a civil war since ’49 – It’s Colombia – where a few ruling family ran it into the ground. Creating the ground for the narco empires to arise.
See our future boys. Do you actually think you are going to drive your BMW & Maybachs without a 3 SUV escort from your Blackwater now Xe security contractor.
See you in hell…Wall Steer douchebags….
@3…I think you might be on the wrong website, this isn’t a comunist forum. Go back to sucking on the teet of society.
Jon – how about “regulations that suck”?
@3 – How’s the ESL class coming along? Keep studying hard and some day you might be able to read something beyond comic books and actually sound like you know what the fuck you’re talking about!
I seem to remember pre-Gramm-Leach-Bliley being a pretty good time. At least music didn’t suck then – Nirvana, Pearl Jam, STP, Sublime – now it’s Taylor Swift, Jonas Bros, whoever the hell else. So on that basis alone, Kanjorski wins.
@4/Joe McCarthy – It’s ‘teat’ my friend. Girls have them. Maybe you’re not into that.
Its Ed Perlmutter….not Earl.
@3 clearly you stumbled onto this website after you woke up with your dick stuck in you cuz Billy Boy’s asshole.
Thank you for your thoughts and after reading your post its hard to fully understand are you a union worker who just got a job at Obama Motors so you love him and the other hypocritical democrats or are you a white trash jew hating uneducated putz who has no idea what he is talking about?
Either way no one cares what you think, these assholes are ruining or country. The very freedom you enjoy that allows you to you the term “jewie” is exactly what is at stake.
The Financial Partnership is a collective Shitheel.
As TGFD and others see it, We should go beyond Kajorski’s “Draconian” approach and ensure that all the following get done as well:
1) Bring back the Glass Steagal Act, no grandfathering, 2-yrs to comply.
2) Repeal most of, if not all of the Commodities Futures Trading Act.
3) Reinstate the Uptick Rule.
4) Highly regulate the derivatives market.
5) Estop any naked derivatives activity. Includes market makers.
6) Classify CDSs as insurance products. Teamed with 1) = powerful.
Hedge funds, boutiques, and Goldman Sachs draw their life energy from derivatives and commodies. Curtail them, slow the whole system down, and most of that energy is sapped from them. Less energy = fewer players. Fewer players = fewer jobs. Fewer jobs = people keeping the ones they have, even at lower pay.
States are nearing bankruptcy, unemployment is not really abating, yet Commercial Bank Goldman Sachs keeps borrowing money from the Fed at ludicrously-low rates and gambling with it, while not lending it out the way commercial banks are supposed to do.
Tinkering around the edges will not solve anything.
We’ve had enough of Wall Street’s financial engineering that was enabled by a corrupt and ignorant Republican congress led around by Phil Gramm, and by an assholeish Clinton executive dept led around by Larry Summers and Mary Schapiro.
Time to set the clock back to 1998, and try again.
That’s TGFD’s take on the subject. That’s all.
The Guy from Delaware
@9 – I don’t think a return to Glass-Steagall will infringe on your right to call non-jews ‘white trash’. It was in effect when we saved the world in WWII. Get back to your government-sponsored bank job. The central planner, i.e. Ben Bernanke has more middle class money to give you. Maybe you can be a member of the party if you play your cards right.
TGFD- How do you get fewer jobs= people keeping the ones they have?
The very idea of fewer players means, fewer jobs means HIGHER unemployment.
Lower pay means less disposable income,
means less purchasing, building, home buying etc…
means economic slow down
yes it can slow down more.
I know you are from Delaware but that cant be an excuse for everything.
@11 not non jews- just you. You are white trash and clearly an ignorant angry guy named Cooter.
As for you saving the world in WWII- how old are you exactly? It might explain your ranting. You are suffering from some kind of syndrome. Dont worry under Obama healthcare you will be out of your misery really soon…
If I remember correctly it was people who think like you that YOU had to save the world from in WWII.
So fuck you very much for that.
Hee yaw…
-9
@13 – so you remember WWII? How old are you? Yep, that’s how dumb you sound. Palin-esque right wing ramblings from an urban jew who hates rural rednecks. Call Dr. Phil and get your head shrunk.
- 11
TGFD, I agree.
Who is this John Gault guy? He sounds hot. Does he have a BBG account? Maybe we could go yachting.
Alicia Wetmore.
Guest@#12…
My comment in #10 “fewer jobs= people keeping the ones they have” should have read…
“Fewer NEW jobs in the financial industry that would attract all that top talent away from their current, pay-capped jobs since more new players (firms, hf’s, boutiques) are NOT opening-up, and since existing firms are closing because of lack of “energy”. Therefore, “people keep the ones they have, even at lower pay.”
TGFD was trying to keep the bulk down on my #10 post.
BTW, your comment about higher unemployment probably should have read, “higher unemployment on Wall St.” In the opinion of many, that would be a good thing.
The Guy from Delaware