A Great First Step for Wall Street Reform

In my last post, I cited a New York Times story that indicated that most economists think the American Recovery and Reinvestment Act is helping to create jobs and stimulate our economy. Earlier this week, the non-partisan Congressional Budget Office confirmed the economists' findings.  

According to the CBO, in the third quarter of this year alone, 600 thousand to 1.6 million jobs were directly created or saved by the American Recovery and Reinvestment Act, reducing our country's unemployment rate by 0.3 to 0.9 percent. This is an especially important finding for my home state of California, which at 12.3 percent, suffers from the third worst unemployment rate in the nation.

More solutions over the flip...

Under this legislation, consumers will finally have a federal regulator with teeth ready to battle predatory financial firms. We will stop financial conglomerates from becoming 'too big to fail' and provide legal and financial assistance to homeowners and tenants trying to save their homes. For the first time in U.S. history, we will regulate the over-the-counter derivatives marketplace, where millions of contracts between large banks have gone unregulated for years. We also require most private equity and hedge fund advisors to register with the Securities and Exchange Commission and expand the SEC's staff and anti-fraud capabilities. We also require full disclosure of financial firms' compensation structures and give shareholders the opportunity to give an advisory vote on executive compensation practices. With millions of Americans unemployed, including tens of thousands in my district, we can't afford further delay on this important package.

With my vote, I'm sending a simple message: no more. No more to abusive lending practices, no more to loopholes that allow billions of dollars between large firms to go unregulated, no more to a system that prioritizes short term profit in one sector over the long term health of an entire economy.

For eight years as California's Insurance Commissioner, I regulated the largest financial industry in America: its insurance companies. Now I'm prepared to take this experience and use it to stop abusive practices in our banking industry. The games have to stop; it's time we created an economy that focuses on the needs of Main Street, not just Wall Street.

Congressman John Garamendi (D-Walnut Creek) represents California's 10th Congressional District. You can follow Congressman John Garamendi on his newTwitter and Facebook accounts.

Tags: banks, CA-10, Congress, finance, financial sector, John Garamendi, SEC, Wall Street (all tags)

Comments

11 Comments

Dear Congressman

Thank you for taking the time to write to us here.

I am still unemployed, but I see the ARRA highway construction signs throughout the state, and I am hopeful for the future. I find it hard to argue that the ARRA was nothing but a good first start, and I hope you keep up the good work.

We also seem to have a troll infestation here.

by NoFortunateSon 2009-12-13 10:54AM | 0 recs
Re: A Great First Step for Wall Street Reform

Could you provide some backup on the created and saved jobs?  The statement alone sounds a bit hollow.

by orestes 2009-12-13 01:33PM | 0 recs
Re: A Great First Step for Wall Street Reform

It was in the CBO estimate and he provided a link to it...

What more do you want?

by vecky 2009-12-13 04:51PM | 0 recs
Re: A Great First Step for Wall Street Reform

The link does not provide any back-up:  "640,000 jobs saved or created, as reported by recipients." I would like to know how that is determined.  If it is merely that all of the recipients currently employ this number of people, there needs to be some additional basis for asserting that these jobs would have disappeared without the funding.

by orestes 2009-12-14 06:02AM | 0 recs
Re: A Great First Step for Wall Street Reform

WTF... "as reported by recipients"... agencies which received the money stated they hired or didn't fire 640,000 people.

You may remember that police academy in OH the president visited months ago... he visted with recent graduates who would not have been hired if not for the ARRA funds. Similarly I watch a news report the other day of a small town sheriff and his deputy, the town was going to have to let go of the deputy but his job was saved becasue of ARRA funds...

by vecky 2009-12-14 10:02AM | 0 recs
Re: A Great First Step for Wall Street Reform

You seem to have a problem with reading comprehension.  If you step back and read what others have written instead of gunning for a fight you might learn something.  My question relates to how it is determined whether employees would have been laid off but for the funds.  You can't save a job if it wasn't in jeopardy in the first place.  It's a little cute for the govt to claim jobs were saved simply because the company received government funds/contract. I would hope we would get a more serious analysis of the program's effectiveness.

by orestes 2009-12-14 06:10PM | 0 recs
Re: A Great First Step for Wall Street Reform

" My question relates to how it is determined whether employees would have been laid off but for the funds.   "

Because that was what was reported by the agencies receiving the funds.

To paraphrase: If we had not received ARRA funds we would have fired/not hired X.

by vecky 2009-12-14 11:00PM | 0 recs
Re: A Great First Step for Wall Street Reform

Okay, smartass, show me where that is indicated.  All I have found is the statement that recipients reported to the govt.  If it's simply an averment by a recipient of government funds, I would be look at such statements with much skepticism.  I would like to see the breakdown.  I would bet if you look closely, these numbers are on steroids.

by orestes 2009-12-15 05:46AM | 0 recs
Re: A Great First Step for Wall Street Reform

That's what "as reported by recipients" means.  Recipients of stimulus funds were asked to fill out a form where they indicate how many jobs were saved/created with the funds.

It's not exactly a "hard" number (not that I know a better way to calculate it), so you're right to be skeptical of it, but it's not like the recipients have any incentive to grossly exaggerate the numbers either.  Most business owners are in a pretty good position to know what impact an influx of government funding had on their business.

by Steve M 2009-12-15 07:14AM | 0 recs
If only the ARRA

had included some funding for troll control.

by JJE 2009-12-14 12:18PM | 0 recs
You nailed it!

Reading this piece, the first thing that sprung to mind was Homage to Catalonia.

by JJE 2009-12-14 12:21PM | 0 recs

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