Reform moves through the House

I applaud the The Financial Reform bill that made its way out of the House with a lot of good reform measures included. When you look into the massive unaccounted for giveaways that the Fed is involved in, worth Trillions, number one on the list is the Grayson-Paul amendment to audit the Fed, which was included in the bill.

The "Wall Street Reform and Consumer Protection Act of 2009" now has to get through the US Senate in whatever form it takes there, and we can begin to see some needed reform.  Congressman John Garamendi has more on the bill in a post here.

Tags: Alan Grayson, John Garamendi (all tags)



not a perfect bill

by any means, but a decent step forward.

This seems to be one of the big loopholes:

Consumer advocates cheered the survival of the consumer protection agency but said the overall legislation fell short, especially in the regulation of complex investment instruments known as derivatives.

The legislation aims to prevent manipulation and bring transparency to the $600 trillion global derivatives market. But an amendment by New York Democrat Scott Murphy, adopted 304-124 Thursday night, created an exception for nonfinancial companies that use derivatives as a hedge against market fluctuations rather than as a speculative investment. The amendment exempted businesses considered too small to be a risk to the financial system.

A Democratic effort to make more companies subject to derivatives regulations and to end abusive-trading rules failed.

When the Obama administration first proposed a package of regulations, it called for regulations of derivatives without any exceptions. But a potent lobbying coalition that included Boeing Co., Caterpillar Inc., General Electric Co., Coca-Cola and other big companies persuaded lawmakers to dilute the restrictions.

"It's a weakness in the bill and a win for Wall Street," said Barbara Roper, director of investor protection for the Consumer Federation of America. "Hedge funds and others that are not bona fide hedgers of commercial risk will slip through this language."

I hope the regulators get tough on payday lending. Just one of those loans can trap people in a cycle of debt forever.

by desmoinesdem 2009-12-14 07:39AM | 0 recs
Reading the tea leaves:

MYDD Headline in 7 month, 12 days, 6 hours, and 42 minutes:

"Watered-down financial reform bill imperiled after Lieberman objects to compromise placing apes in charge of SEC and Fed, says pigeons would be better".

by the mollusk 2009-12-14 08:51AM | 0 recs
Re: Reading the tea leaves:

LOLZ... however it's more than likely Collins and Snowe will go along with this bill, so Lieberman isn't so crucial.

by vecky 2009-12-14 10:06AM | 0 recs
Re: Reform moves through the House

It's a start.

I'm still uncomfortable about the audit of the Federal Reserve. I'd rather set my sights on sinking a second term for Bernanke. But I am open to being convinced that the audit is necessary.

by Charles Lemos 2009-12-14 04:13PM | 0 recs
Re: Reform moves through the House

The audit is just window dressing, but who cares really?  If it increases public confidence even a modicum, it's worth doing.  Call it transparency for its own sake.

by Steve M 2009-12-14 05:15PM | 0 recs


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