Friday, May 21, 2010

Three Things About the Financial Reform Bill That Don't Make Sense

By now, we all know that last night the Senate passed their version of the financial reform bill that was mightily hated and fought by corporations, their swarm of lobbyists and the US Chamber of Commerce. I guess we should thank whatever God we pray to for small favors that it didn't drag on as long and as bitterly as the health care debate. In fact, a comprehensive bill may be on President Obama's desk as early as Monday next week.

And while it's certainly a good thing that Congress ultimately resisted the forces of darkness, there are three major issues I have with the bill. I never had any illusions that this "sweeping" "reform" bill would either be sweeping or benefiting from any actual reformist zeal but I just want to have three things clarified for me:

1) If the cost of regulating risks will make too "expensive" for banks to comply with the added oversight and if they pass these additional expenses onto their account holders, then how is this real regulatory reform? Isn't protecting Joe Accountholder from rapacious banks the main impetus for drafting such reform, in the first place?

2) Regulating interchange fees may or not prove to be a good idea in the long run. Yet if debit card holders like me (although I use a community bank, which isn't the concern of the bill) find fewer places where their cards will be accepted, in theory this could lead to bigger headaches than not being able to pay with the plastic. If more people are forced to withhold liquid capital from their banks and keeping more of their cash to themselves to make purchases that used to be made with debit cards, doesn't that hurt banks in the long run and wouldn't they, once again, be forced to retaliate by hiking fees and surcharges to make up for this shortfall in liquid capital?

3) If Freddie Mac and Fannie Mae are still owned lock, stock and barrel by the federal government, then why are they exempt from oversight from Uncle Sam? You'd think this would be the perfect time to keep an eye on these troublesome twins to ensure they've learned their lesson.

Even the most cynical of us have to concede that this bill could've been a lot worse. Think of the Bankruptcy bill of 2005, for instance, another product of hideously misplaced and badly-aimed zeal. Forming a consumer protection agency, something bitterly fought by the US Chamber of Commerce is, in theory, a good thing for US consumers. Hopefully, it won't be underfunded or neglected when no one's looking so banks will continue making usurious, predatory loans to unwary home buyers that can then be bundled and profitably sold as toxic assets by other predators such as Goldman Sachs.

Going back to the regulatory risks aspect of the bill: One thing I do like is the creation of a $150,000,000,000 slush fund to help bail out "distressed" banks. Why shouldn't they pay for their own bailouts instead of passing the buck, or 700 billion of them, to the taxpayer? And if they try to make up for that shortfall by jacking up fees and surcharges or lowering interest rates on interest-bearing accounts, there's always the option of amending the bill.


At May 22, 2010 at 10:13 AM, Anonymous Comrade Rutherford said...

Fannie and Freddie used to be great - when they were both not-for-profit organizations! They onyl got into trouble when they were converted into for-profit companies and handed over to Bush cronies for them to loot.

Same thing with America's insurance companies. These abhorrent practices only started after they were allowed to change from not-for-profits to greedy for-profits.

I say use the power of the Department of Commerce and forcibly convert every single health insurance company back into the benign not-for-profit companies they are supposed to be. Same thing with Freddie and Fannie, turn them back into not-for-profits and put some logic-minded Liberals in control of them.

At May 22, 2010 at 2:29 PM, Blogger Rusty Shackleford said...

Amazing,Bush gets blamed for Fannie and Freddie. Why is it you people never mention the butt pirate Barney Frank and his invovlment in that mess.Dont revise history,it was the dems who had the bright idea of giving mortgages to low income people who had no business getting one thus sparking the crisis.
Does the truth really hurt you people that much?

At May 22, 2010 at 4:31 PM, Blogger jurassicpork said...

From the junk drawer of your Dad's toolchest: Another wingnut heard from.

At May 23, 2010 at 4:26 PM, Blogger Rusty Shackleford said...

Typical code pink response.Throw a rock at the messenger when he's speaking the truth.Will you people ever realize how stupid you look?

At May 23, 2010 at 4:48 PM, Blogger jurassicpork said...

It wasn't the Democrats' idea to give mortgages to low income people so they could then see their APRs and mortgages literally double within the first 15 months of home ownership and see them get foreclosed upon.

Their mistake was in trusting that places like Freddie Mac and Fannie Mae and the banks with whom they made these loans would treat these people fairly and squarely. After all, the "Ownership Society" was Bushie's mantra. Who could blame these firsttime buyers for wanting a piece of the American dream?

Yeah, Bush called for more oversight of Mac and Mae but it wasn't exactly his signature issue. Illegally invading Iraq and Afghanistan was, as well as tax cuts, rolling up a huge deficit, spying on US citizens and putting Social Security on the casino gaming tables of Wall Street.

Who's revising what? However misguided the Dems were, their hearts were in the right places. Same thing can't be said for your beloved GOP that hasn't done shit for you or the mortgage lenders who partly wrote the bankruptcy bill that your chosen party shoehorned into law back in 2005.

Dick Durbin, a Democrat, tried to introduce a bill that would've given limited relief to homeowners and you have your beloved GOP and the lobbyists to whom they subcontract to thank for scuttling even that modicum of relief for homeowners about to lose their houses.

At May 24, 2010 at 1:52 AM, Blogger Rusty Shackleford said...

Ahhh,the dems hearts were in the right place. Now that makes their major cluster fuck just peachy keen.Hearts in the right place....yea,thats the damn typical.


Post a Comment

Links to this post:

Create a Link

<< Home

KindleindaWind, my writing blog.

All Time Classics

  • Our Worse Half: The 25 Most Embarrassing States.
  • The Missing Security Tapes From the World Trade Center.
  • It's a Blunderful Life.
  • The Civil War II
  • Sweet Jesus, I Hate America
  • Top Ten Conservative Books
  • I Am Mr. Ed
  • Glenn Beck: Racist, Hate Monger, Comedian
  • The Ten Worst Music Videos of all Time
  • Assclowns of the Week

  • Links to the first 33 Assclowns of the Week.
  • Links to Assclowns of the Week 38-63.
  • #106: The Turkey Has Landed edition
  • #105: Blame it on Paris or Putin edition
  • #104: Make Racism Great Again Also Labor Day edition
  • #103: A Funny Thing Happened on the Way to the Toilet edition
  • #102: Orange is the New Fat edition
  • #101: Electoral College Dropouts edition
  • #100: Centennial of Silliness edition
  • #99: Dr. Strangehate edition
  • #98: Get Bentghazi edition
  • #97: SNAPping Your Fingers at the Poor edition
  • #96: Treat or Treat, Kiss My Ass edition
  • #95: Monumental Stupidity double-sized edition
  • #94: House of 'Tards edition
  • #93: You Da Bomb! edition.
  • #92: Akin to a Fool edition.
  • #91: Aurora Moronealis edition.
  • #90: Keep Your Gubmint Hands Off My High Pre'mums and Deductibles! edition.
  • #89: Occupy the Catbird Seat/Thanksgiving edition.
  • #88: Heil Hitler edition.
  • #87: Let Sleeping Elephants Lie edition.
  • #86: the Maniacs edition.
  • #85: The Top 50 Assclowns of 2010 edition.
  • #(19)84: Midterm Madness edition.
  • #83: Spill, Baby, Spill! edition.
  • #82: Leave Corporations Alone, They’re People! edition.
  • #81: Hatin' on Haiti edition.
  • #80: Don't Get Your Panties in a Twist edition.
  • #79: Top 50 Assclowns of 2009 edition.
  • #78: Nattering Nabobs of Negativism edition.
  • #77: ...And Justice For Once edition.
  • #76: Reading Tea Leaves/Labor Day edition.
  • #75: Diamond Jubilee/Inaugural Edition
  • #74: Dropping the Crystal Ball Edition
  • #73: The Twelve Assclowns of Christmas Edition
  • #72: Trick or Treat Election Day Edition
  • #71: Grand Theft Autocrats Edition
  • #70: Soulless Corporations and the Politicians Who Love Them Edition
  • Top 10 Things Donald Trump Said to President Obama
  • Paul Ryan's Top Ten Conditions on Running for the Speakership
  • Top 10 Reasons Why Mitt Romney Won't Run for President in 2016
  • Top 10 Results of the NYPD's Work Slowdown
  • Top 10 Secret Service Security Breaches
  • Top 10 LA Radio Shows That Are Rated Higher Than Rush Limbaugh's
  • Top 10 Reasons Operation American Spring Went Flat
  • Top Ten Facts of the MH370 Air Disaster
  • Top 10 Tips for GOP Congressmen Running Against Women
  • Top 10 Signs Walmart's Mistreating its Workers
  • Top 10 Diversions John McCain Found During Syria Hearing
  • Top 10 George Zimmerman Excuses for Speeding.
  • Top 10 Reasons Paula Deen Got Fired by the Food Network
  • Top Ten Ways Pope Francis is Deviating From Convention
  • Top 10 Reasons For the Pope's Resignation
  • Top 10 Emails Hacked From the Bush Family's Email Accounts
  • Top 10 Lies Told by Mitt Romney at the 2nd Debate.
  • Top 10 Examples of How Hard the Campaign Trail is on Ann D. Romney.
  • Top 10 Ways to Tell The Boston Red Sox Are Finished.
  • Top 10 Things Mitt May be Hiding in His Tax Returns.
  • Top 10 Events at the Romney Olympics.
  • Mitt Romney's Top 10 Wild & Crazy Moments.
  • Top Ten Reasons Why Dick Cheney Got a Heart Transplant.
  • Top 10 Facts About Tonight's New England/Denver Game.
  • My Top 10 Resolutions.
  • Top 10 Rejected Slogans of the Romney Campaign.
  • Top 10 Reasons Herman Cain Suspended His Campaign.
  • Top 10 Trending Topics on Twitter During #OWS Eviction.
  • Top 10 Herman Cain Pickup Lines.
  • Top 10 Changes Since Anthony Weiner Decided to Resign.
  • Top 10 Inaccuracies re bin Laden's Death.
  • Top 10 Ways to Prevent a TSA Patdown.
  • Top Ten Things Not to Say When You're Pulled Over.
  • Top 10 Reasons Why Donald Trump Bowed Out of the Presidential Race.
  • Top 10 Ways Evangelicals Will Prepare for the Rapture II.
  • Top 10 Revelations in Today's Parliament Inquiry into News Corp.
  • Top 10 Reasons Why There Was No Vote on the Debt Ceiling Last Night.
  • Top 10 Revelations in Dick Cheney's Upcoming Memoir.
  • Top Ten Ways Americans Will Observe the 10th Anniversary of 9/11.
  • Top Ten Advances in Women's Rights in Saudi Arabia.
  • Top Ten Inaccuracies in Bill O'Reilly's Book About Lincoln.
  • Top Ten Suggestions From the Cat Food Commission.
  • Top Ten Worst Moments in George W. Bush's Presidency.
  • Top Ten Facts in George W. Bush's Memoir.
  • Top Ten Reasons Terry Jones Postponed His Koran Burning
  • Top 10 Causes for Dick Cheney's Congestive Heart Failure
  • Top Ten Ways That Jan Brewer Will Celebrate Cinco de Mayo
  • Top Ten Demands in Sarah Palin's Contract
  • Top Ten Whoppers in Karl Rove's New Book
  • Top 10 Items Left Behind in Rush Limbaugh's Apartment
  • Top Ten Things Barack Obama said to Rush Limbaugh in the Hospital
  • Top Ten Bizarre Promos Offered by the New Jersey Nets
  • Top 10 Bush Executive Orders Labor Wants President Obama to Repeal
  • George W. Bush's Top Ten Lesser Achievements
  • Empire Of The Senseless.
  • Conservative Values for an Unsaved World.
  • Esquire's Charles Pierce.
  • Brilliant @ Breakfast.
  • The Burning Platform.
  • The Rant.
  • Mock, Paper, Scissors.
  • James Petras.
  • Towle Road.
  • Avedon's Sideshow (the new site).
  • At Largely, Larisa Alexandrovna's place.
  • The Daily Howler.
  • The DCist.
  • Greg Palast.
  • Jon Swift. RIP, Al.
  • God is For Suckers.
  • The Rude Pundit.
  • Driftglass.
  • Newshounds.
  • William Grigg, a great find.
  • Brad Blog.
  • Down With Tyranny!, Howie Klein's blog.
  • Wayne's World. Party time! Excellent!
  • Busted Knuckles, aka Ornery Bastard.
  • Mills River Progressive.
  • Right Wing Watch.
  • Earthbond Misfit.
  • Anosognosia.
  • Echidne of the Snakes.
  • They Gave Us a Republic.
  • The Gawker.
  • Outtake Online, Emmy-winner Charlotte Robinson's site.
  • Skippy, the Bush Kangaroo
  • No More Mr. Nice Blog.
  • Head On Radio Network, Bob Kincaid.
  • Spocko's Brain.
  • Pandagon.
  • Slackivist.
  • WTF Is It Now?
  • No Blood For Hubris.
  • Lydia Cornell, a very smart and accomplished lady.
  • Roger Ailes (the good one.)
  • BlondeSense.
  • The Smirking Chimp.
  • Hammer of the Blogs.
  • Vast Left Wing Conspiracy.
  • Argville.
  • Existentialist Cowboy.
  • The Progressive.
  • The Nation.
  • Mother Jones.
  • Vanity Fair.
  • Citizens For Legitimate Government.
  • News Finder.
  • Indy Media Center.
  • Lexis News.
  • Military Religious Freedom.
  • McClatchy Newspapers.
  • The New Yorker.
  • Bloggingheads TV, political vlogging.
  • Find, the next-best thing to Nexis.
  • Altweeklies, for the news you won't get just anywhere.
  • The Smirking Chimp
  • Don Emmerich's Peace Blog
  • Wikileaks.
  • The Peoples' Voice.
  • CIA World Fact Book.
  • IP address locator.
  • Tom Tomorrow's hilarious strip.
  • Babelfish, an instant, online translator. I love to translate Ann Coulter's site into German.
  • Newsmeat: Find out who's donating to whom.
  • Wikipedia.
  • Uncyclopedia.
  • Icasualties
  • Free Press
  • YouTube
  • The Bone Bridge.
  • Powered by Blogger