In November, I wrote about how the payday loan industry is being regulated out of business as government know-it-alls determined they were bad for consumers. Regulating the industry took an option away from consumers in need, but as it turns out, the Dodd-Frank credit card reform legislation – effecting more traditional financial institutions – makes it even worse for those who need a few dollars.
I have watched this video three times and I am still not sure what he is talking about. But Olbermann sums it up. It’s like we’re slaves or something. Read more
The recently enacted Financial Reform bill, brought to us chiefly through the efforts of Senator Dodd (D. Ct.) and Congressman Frank (D. Ma.), was, like much of the handiwork of this Congress, passed in haste. Remember, something had to be done immediately so that we never have another financial meltdown like we just had? This bill, too, was ponderous, consuming 2300 plus pages, and, like Obamacare, probably wasn’t read by anyone who voted for it. Well, as Speaker of the House Pelosi (D. Ca.) would have said, now that the bill has passed, we can see what is in it.
Within days, what we saw was problematical, and, I’m guessing this is the tip of the iceberg. Here are just two of the issues.
The first involved the $1.4 trillion asset-backed securities market. This is the market where corporations and municipalities sell bonds to raise funds for certain specific projects. As an example, your town might issue bonds to cover the cost of a new police and fire station.
What happened here was that under SEC regulations, any bond issue sold must have a rating from a “credit rating” firm, such as Moody’s or Standard & Poor’s. The Dodd/Frank bill, however increased the legal liability of these credit rating agencies (a lawyer’s relief act), so the companies refused to provide ratings in bond deals. The bond market screeched to a halt. After a few days, the SEC had to “suspend” its long standing regulation of requiring credit ratings, and allow the bond deals to proceed without a credit rating.
The second involves the process by which the FDIC gauges the soundness of banks.
Banking regulators were “weeks away” from finalizing a long-running effort to set risk-based capital standards for smaller, less-complex banks, say people familiar with the matter.
But now, thanks to the Dodd/Frank Bill, it is anyone’s guess when that will happen. Bank regulators had planned to use credit ratings as part of that process, but the bill bans the use of credit ratings in setting those standards.
As Comptroller of the Currency John Dugan, an FDIC board member said,
I do worry about there is a little bit of throwing out the baby with the bath water. It might be worth Congress taking a second look at. [emphasis supplied]
Anyone think Senator Dodd and Congressman Frank will do so?
I watched the entire Neil Cavuto interview last night with Barney Frank and I was stunned. Stunned at how Bawney kept patting himself on the back for being the only one to recognize the weakness of Fanny and Freddie, how he tried to hard to make reforms but was blocked by Bush every step of the way, and how we now need to throw Fannie and Freddie under the bus. Which doesn’t fit and why? Read more
I could give you a bit of the interview Cavuto did … but why bother? Neil’s commentary at the end of the show is far more entertaining and far more revealing about Barney Frank … rude and disrespectful to his constituents. Come to think of it … it’s really become the Democrat mantra hasn’t it? And why not? In the Bay State he has set up the strangest geographical district ever created to assure a safe seat. (From Opencongress.org)
Says Cavuto, “I thought I stunk …. as it turns out, everyone stinks.” Enjoy!
And if your cable company does not give you Fox Business (Cavuto at 6PM) DEMAND IT!
One of the biggest problems that caused the mortgage “crisis” was lending money to people who could not afford to pay it back. Fixing that problem required lenders to pay attention to income, credit scores, savings habits and debt ratios. Guess what happens?
Creep. As politicians were selling the TARP fund to Americans, they frequently let us know the hand outs were not hand outs at all, more of a loan that would be paid back. If we agreed with the grand plan – that needed to be approved today – there was a good chance the American people would actually make money on their investment! Hogwash.
Ok, OK … I have had enough. Here it is! Plus, Joel Pollack’s interview with Gretta Van Susteren last night. As I said two days ago, what is so admirable about this is the way, despite the ridicule from a sitting US Congressman, who by the way works for Mr Pollack, he continued to ask his question waiting for an answer, which never came. Read more