March 15, 2010
Dodd Takes Another Crack at Financial Reform But ... Does Anyone Care?
18 months after excessive risk in the banking industry brought the global financial system to a jolting halt, the rules that govern Wall Street have not changed.
Outgoing Senator Chris Dodd hopes to change that. The Chairman of the Senate Banking Committee today taking yet another crack at financial reform.
Good Luck!
The bill has little support from Republicans and will come under strong opposition from the (increasingly) powerful bank lobby flooding the halls of Congress.
According to various media reports, highlight of the bill include:
-- New powers to the Federal Reserve to regulate the largest financial institution. (This is a change from Dodd’s prior reform plan that moved to limit Fed control.)
-- The Fed would have the power to force companies to reduce their risk, or to ban some kinds of trades and investments.
-- Consumer protection agency within the Federal Reserve to establish and govern rules over mortgages and credit cards
-- Give the President the power to appoint the New York Federal Reserve Bank President
-- More derivative regulation
-- Replace "Too Big to Fail" with mechanism to wind down insolvent banks without putting the entire financial system in turmoil
The best thing going for the bill may be the fact Dodd isn’t running for re-election. Free of those responsibilities, the Senator may have a fighting chance of pushing compromise.
watch @
http://finance.yahoo.com/tech-ticker/dodd-takes-another-crack-at-financial-reform-but-...-does-anyone-care-442280.html?tickers=XLF,FAZ,JPM,GS,C,MS,%5EDJI
