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Ari Chi3fs
03-29-2008, 12:19 AM
Bush seeks financial regulation overhaul

<!-- BEGIN STORY BODY --> By MARTIN CRUTSINGER, AP Economics Writer 1 hour, 1 minute ago

<!-- end storyhdr --> WASHINGTON - The Bush administration is proposing a sweeping overhaul of the way the nation's financial industry is regulated.

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In an effort to deal with the problems highlighted by the current severe credit crisis, the new plan would give major new powers to the Federal Reserve, according to a 22-page executive summary obtained Friday by The Associated Press.


The proposal would designate the Fed as the primary regulator of market stability, greatly expanding the central bank's ability to examine not just commercial banks but all segments of the financial services industry.
The administration proposal, which is to be formally unveiled in a speech Monday by Treasury Secretary Henry Paulson, also proposes consolidating the current scheme of bank regulation.


The plan would shut down the Office of Thrift Supervision, which supervises thrift institutions, and transfer its functions to the Office of the Comptroller of the Currency, which regulates banks. The plan would eliminate the distinction between banks and thrift institutions.


The role the Federal Reserve has been playing in efforts to stabilize the financial system after a credit crisis hit last August would be formalized.
The Fed would become the government's "market stability regulator," given sweeping powers to gather information on a wide range of institutions so that Fed Chairman Ben Bernanke and his colleagues could better detect where threats to the system might be hiding.


The proposal is certain to generate intense scrutiny in Congress and within the financial services industry, where past efforts to change how regulation is handled have met with fierce resistance.


Sen. Charles Schumer, D-N.Y., said that he approved of much that Paulson had included in the administration proposal.


"In broad outlines, we agree with large parts of Secretary Paulson's plan," Schumer, chairman of the Joint Economic Committee, said in a statement. "He is on the money when he calls for a more unified regulatory structure, although we would prefer a single regulator to the three he proposes."
Under Paulson's approach, the Fed would serve as the market stability regulator and there would also be a financial regulator that would focus on financial institutions that operate with government guarantees such as deposit insurance for banks.


The administration plan also proposes a business conduct regulator who would be in charge of overseeing consumer protection issues.
The plan was first reported by The New York Times on its Web site Friday night.






MAYBE RON PAUL, WILL RUN AFTERALL??

Guru
03-29-2008, 12:38 AM
Damnit!!! The market will fix itself. It always does.

Ari Chi3fs
03-29-2008, 12:50 AM
This right here is a MAJOR coup. This would be colossal shit. Greedy cock suckers.

Adept Havelock
03-29-2008, 09:00 AM
Fox, here's the keys to the henhouse. Keep an eye on things, Okay?

:shake:

banyon
03-29-2008, 10:35 AM
Yeah, let's EXPAND the role of the FED. They've done such a bang-up job with the dollar, why not let them into our 401 k's and IRAs?

BucEyedPea
03-29-2008, 10:45 AM
The best regulation is to let the market punish them by going out of business for bad business decisions such as looser credit guides to people who could not pay. Let both sides of that fiasco pay the price. That alone teaches a hard lesson.

CHIEF4EVER
03-29-2008, 10:55 AM
Fox, here's the keys to the henhouse. Keep an eye on things, Okay?

:shake:

LMAO

I wish I could rep you but am not allowed to until I spread a bit more around.

eazyb81
03-29-2008, 11:01 AM
This is kind of scary.

eazyb81
03-29-2008, 11:03 AM
The best regulation is to let the market punish them by going out of business for bad business decisions such as looser credit guides to people who could not pay. Let both sides of that fiasco pay the price. That alone teaches a hard lesson.

Yeah, that would totally give investors faith in our economy!

BucEyedPea
03-29-2008, 11:07 AM
Yeah, that would totally give investors faith in our economy!

It'll fix itself over time. They should be more careful too.

eazyb81
03-29-2008, 11:23 AM
It'll fix itself over time. They should be more careful too.

Of course you think that, because you don't understand what the implications would be.

In regards to Bear Stearns, BS is a counter-party to more than $10 trillion (with a "T") in credit swaps - bailout or not, the markets would have been in far worse shape if not for the move by JPM. The Fed's backing is really just a temporary capital backstop, not so different than that needed to unwind LTCM's precarious market positions during the late 1990's. I agree that creditors should take a hit on this, and they are, but there is a big difference between redeeming credit securities at 60-70 cents on the dollar versus redeeming them at 10 cents on the dollar.

Regarding the equity, I think $0 per share is a fair price, and JPM should have taken a harder line on this front.

The Economist just had a nice article on this issue - you should check it out. A quote from the article was "Bear wasn't too big to fail; it was too entangled".

BucEyedPea
03-29-2008, 11:38 AM
Of course you think that, because you don't understand what the implications would be.

In regards to Bear Stearns, BS is a counter-party to more than $10 trillion (with a "T") in credit swaps - bailout or not, the markets would have been in far worse shape if not for the move by JPM. The Fed's backing is really just a temporary capital backstop, not so different than that needed to unwind LTCM's precarious market positions during the late 1990's. I agree that creditors should take a hit on this, and they are, but there is a big difference between redeeming credit securities at 60-70 cents on the dollar versus redeeming them at 10 cents on the dollar.

Regarding the equity, I think $0 per share is a fair price, and JPM should have taken a harder line on this front.

The Economist just had a nice article on this issue - you should check it out. A quote from the article was "Bear wasn't too big to fail; it was too entangled".

The Economist is a left of center economic publication that supports some of economic fallacies.

Explain to me how an unelected Bernanke has the right to give 230 Billion of our money for a few friends on Wall Street so they can still drive their Maserati's?

You call that restoring faith in the system? Lol!

I'm sure we'll never be told about things like that or have it framed this way.

So now we reward bad behavior, foolish economic decisions based on greed by investment banksters but we're going to load up on regulations for those that operated sanely, wisely and ethically. I would think people would just invest in the better run places instead of the riskier places. Let 'em go under.

Let those who invested in such places pay the price for not really doing their economic homework. If Sterns gets a bailout a lot of other places will want one including those holding mortages they can't pay. It's an endless cycle that repeats.

eazyb81
03-29-2008, 11:42 AM
LOL, way to completely ignore the objective points I laid out for you.

Time for you to go watch X-Files and come up with some more conspiracy theories.

BucEyedPea
03-29-2008, 11:49 AM
I only quoted that to show I was talking to you. It was actually what I wanted to add earlier but then you posted again. I just looked at it now 'cause you wanted me to. Sorry, but your points are just not relevant to my stand which is an ethics one. I have nothing against JPM buying them. I do object to the Fed expanding it's role with a loan to them though. ( our money)

May I ask what conspiracy theory was advanced here?
Or is that just a routine line in a can for calling unethical bankers "banksters"?
I don't watch the x-files either. But your implication tells me you couldn't defend against my ethic's points.

eazyb81
03-29-2008, 09:20 PM
I only quoted that to show I was talking to you. It was actually what I wanted to add earlier but then you posted again. I just looked at it now 'cause you wanted me to. Sorry, but your points are just not relevant to my stand which is an ethics one. I have nothing against JPM buying them. I do object to the Fed expanding it's role with a loan to them though. ( our money)

May I ask what conspiracy theory was advanced here?
Or is that just a routine line in a can for calling unethical bankers "banksters"?
I don't watch the x-files either. But your implication tells me you couldn't defend against my ethic's points.

LOL, you can't handle someone calling you out when you obviously are talking out of your ass, so you neg rep me?!

ROFL

You are f'n hilarious. At least you know your place now. Stay out of the finance/econ questions and just nod when the smart guys are talking.

SBK
03-29-2008, 09:29 PM
If there's one guy that shouldn't be anywhere near Wall Street, and our national finances it's Helicopter Ben.

I hate the fed.

Here's the way it works. Idiot company makes bad decision, loses. New company learns from dumb company and does not make same mistake.

We have this credit crisis because of the savings and loan bailout. Bankers new that the risk isn't there because the gov't will save the day. So they can get greedy and make absolutely retarded investments and sleep well at night.

Ari Chi3fs
03-30-2008, 02:45 PM
This has been bugging me for the past couple days. This news is horrible, and most Americans won't hear about it, I bet. I haven't seen anything about it in the news aside from New York Times.

Now that Ruppert Murdoch owns flipping every news outlet now, I doubt the Sheeple of the United States of Amerika even will know about it.

Jenson71
03-30-2008, 02:49 PM
This has been bugging me for the past couple days. This news is horrible, and most Americans won't hear about it, I bet. I haven't seen anything about it in the news aside from New York Times.

It's not that fun to discuss. It's hard to understand. I'm so ignorant, I already thought the Fed was the primary regulator of market stability.

Ari Chi3fs
03-30-2008, 03:03 PM
This would be the catalyst for market failure. I'd really like to hear Ron Paul's take on this.

a1na2
03-30-2008, 03:44 PM
I wish I could rep you but am not allowed to until I spread a bit more around.


That is just sad, sounds like you are gay for adept havenot

BucEyedPea
03-30-2008, 05:04 PM
I wonder if the national socialist central planners will require we wear brown shirts whenever we enter a bank now? :hail:

banyon
03-30-2008, 05:54 PM
That is just sad, sounds like you are gay for adept havenot

Ooh, good one! More with the gay jokes! You da king of gay!

banyon
03-30-2008, 05:55 PM
I wonder if the national socialist central planners will require we wear brown shirts whenever we enter a bank now? :hail:

S***, i didn't realize I was supposed to be for this with my commie nazi brethren. Is it too late to change my opinon?

Hydrae
03-30-2008, 06:55 PM
I honestly wonder if the dollar will still be in existance by the end of the decade. Heck, I wonder if it will survive the year.

Mr. Laz
03-30-2008, 07:08 PM
more government is what we need /Bush GOP

keg in kc
03-30-2008, 07:08 PM
I honestly wonder if the dollar will still be in existance by the end of the decade. Heck, I wonder if it will survive the year.I think we'll be saying hello to the Amero by 2015. He's been trying to cram the american union through since he went into office.

Adept Havelock
03-30-2008, 09:26 PM
S***, i didn't realize I was supposed to be for this with my commie nazi brethren. Is it too late to change my opinon?

First go stand in the corner and sing the Internationale and the Horst Wessel Song three times. :p

Braincase
03-30-2008, 09:42 PM
I trust Bush's fiscal policy like I trust Clinton on the set of a Girls Gone Wild video shoot.

keg in kc
03-30-2008, 09:59 PM
I trust Bush's fiscal policy like I trust Clinton on the set of a Girls Gone Wild video shoot.Oh, I don't know. Clinton probably has some clue about what to do with horny young women. And when I say "Clinton" I don't just mean Bill.

BucEyedPea
03-31-2008, 07:25 AM
First go stand in the corner and sing the Internationale and the Horst Wessel Song three times. :p

He already sings that in the shower.:LOL:

Amnorix
03-31-2008, 07:34 AM
The Economist just had a nice article on this issue - you should check it out. A quote from the article was "Bear wasn't too big to fail; it was too entangled".


IT wasn't written by a Misean, so it's prohibited reading for her.

eazyb81
03-31-2008, 08:55 AM
IT wasn't written by a Misean, so it's prohibited reading for her.

:LOL:

I guess it's easy to think you know the facts when you keep your head buried in the sand. She's a joke.

BucEyedPea
03-31-2008, 10:10 AM
Even Glenn Beck has pointed out that we're making all the same mistakes as we did in the Great Depression.

Dream on statists. Truth is truth.