9/26/2012 3:19 PM ET|
How Obama failed to rein in Wall St.
Commentary: The financial sector is more influential and dangerous than ever, thanks to the president's poor choices and advisers.
If you plan to vote for President Barack Obama this fall, you have plenty of reasons: foreign policy strides, a health care overhaul, the auto industry rescue and women's rights, to name a few.
Others of a different political persuasion may not agree. They might argue the president's efforts in these areas were misguided and wrongheaded. But there's no denying the Obama administration actually did something to address each of these issues.
You don't need to ask the fact checkers, though, to know the president has done very little to rein in Wall Street. If anything, he made a bad situation worse.
Of course, that hasn't stopped the Obama campaign from claiming financial reform as one of the major accomplishments of the president's four years in office.
Asked about that claim, the president's re-election team cites some effective-sounding legislation: The Dodd-Frank Wall Street Reform and Consumer Protection Act and, as part of that law, the creation of the Consumer Financial Protection Bureau.
The CFPB may turn out to be a worthy foil to big finance, but at just a year old, the bureau doesn't have the track record to make a fair judgment.
Unlike the CFPB, it's not too early to say Dodd-Frank has turned out to be a tangled mess.
In the more than two years since it was signed into law, there have been 237 rule-making deadlines. Of those, 145 rules remained overdue as of Sept. 4, and only 33% of the law's requirements of the law have been implemented, according to law firm Davis Polk & Wardwell.
Sure, obstructionists in Congress who have held up funding and rule-making are partly to blame. But the administration should have seen this coming.
Instead of returning to the 37-page simplicity of the Glass-Steagall Act, Democratic lawmakers pushed through an 849-page measure aimed at regulating every business, every transaction on Wall Street.
Dodd-Frank has served only to fatten law firms and compliance consultants. It has created almost no effective safeguards against modern risk, such as the trading of "hedges" of the sort that cost JPMorgan Chase (JPM) more than $5 billion in losses and put taxpayers and depositors at risk.
Nor does the law offer any sort of preventative medicine against companies such as Jon Corzine's MF Global, which filed for bankruptcy 11 months ago after losing $2 billion in customer cash.
In short, Wall Street regulation has left us essentially as vulnerable as we were under any previous administration. The only difference is that the too-big-to-fail banks are bigger and more concentrated than ever.
Two institutions alone, JPMorgan and Bank of America (BAC), have swallowed four huge financial companies: Bear Stearns, Washington Mutual, Countrywide Financial and Merrill Lynch.
The only institution capable of limiting Wall Street's influence is the federal government. But the Obama administration has embraced bankers or bank-friendly officials in government.
They include William Daley, the president's chief of staff, who joined from JPMorgan. One of his first statements was to say that when it comes to pushing for jail time for Wall Street CEOs, "politicians should not get involved."
Obama also hired Lawrence Summers, whose record in the Clinton years included killing derivatives regulation, lowering capital-gains taxes and repealing Glass-Steagall.
Of course, one of Obama's first appointments was Timothy Geithner, the Treasury secretary, who had a record of spending far more time dining with Wall Street CEOs than the customers of their banks.
With a team like that, it's no wonder Obama blew a once-in-a-generation chance at strengthening the financial system.
With the pain of a stock-market plunge, double-digit unemployment and lost wealth still fresh in the American consciousness, Obama pursued his social and political agenda -- health care, Iraq, an economic stimulus bill -- and left finance to the finance guys.
Had he pushed harder to save borrowers who lost their homes to the banks -- there have been 3.4 million completed foreclosures and an additional 1.49 million in the process -- Obama might have not only won more votes, but also helped the economy.
So, if you're going to vote for Obama, don't do it because he cleaned up Wall Street. If anything, it's more influential and more dangerous than ever before.
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Our government has been taken over and the globalist using the Zealous governing bodies in our government as puppets assisted by the media controlled outlets is to mold a global collapse (FROM KAOS THEIR WILL BE ORDER) The new world order creed.......But first start the Kaos by destabilizing: Europe, Africa, the entire Middle East and the United States of America which is now a PUPPET STATE under those FRONT MEN'S control....Israeli Government officials and those strung out throughout Europe and the USA are at the heart of the demonic possession......while 40 % of Israelis want the OCCUPATION OF PALESTINE TO END .......You will not see that in the media.....They know that Iran , Syria Lebanon ,Egypt , Lybia , Tunisia, Sudan, and Hamas have to be under control or defeated in order to get to Iran and to Russia and China.....By in sighting internal conflict and false flag events as they are doing so in the United States by using KAOS, FEAR and EXTERMINATION is the name of the game as they institute regime change......by arming so called insurgents first ..killing millions creating new daily body counts that has now surpass the european HOLOCAUST of all faiths in WW2 all innocent people that just wanted to live freely. To many of our brother and sisters have died and will continue to die.....Until we say NO MORE.... and stand up to these ZAELOUS thugs and their Globalist human hating and control agendas....!!!
Of course it is... The imbecile '57 States' and his donkeys are clueless...
Look this problem was caused by excessive speculation in Real Estate. Borrowed money is always involved in speculation. If you want to fix the problem, I can give you a simple rule that will fix it...
Wait for it....
No BANK can make a mortgage loan without 25% down. NO exceptions.
Like the stock market market rule of 50% ended the potential for collapse. Had this rule been in place we would never have had a real estate bubble or melt down. FDR put the stock market margin rule in place to insure no future meltdowns. Of course the liberals oppose this. So Dodd/Frank does nothing to prevent future meltdowns. It also does nothing to prevent financial swindlers from serving no time, Jon Corzine is a perfect example. A guy who authorized the looting of customer accounts, and because he is a democrat and Obama supporter he is free...
Sorry, but if you want to rein in Wall Street, start with Margin requirements. And on commodities too...
November cannot get here soon enough.... Our current President, is Lazy, Corrupt, and Stupid...
"Instead of returning to the 37-page simplicity of the , Democratic lawmakers pushed through an 849-page measure aimed at regulating every business, every transaction on Wall Street."
Glass-Steagall served us well for more than 60 years. If it had not been repealed and if regulators had just done their jobs, there would have been no financial meltdown in 2008. Look for another major crisis if the TBTF banks are not broken up. Greed has no party affiliation.
"J.P. Morgan holds over 70 TRILLION dollars worth of derivatives and as they lose these bets, they simply get more free money from the Fed (see QE-1,2, & 3). These banksters then kick back to the politicians in the form of "campaign contributions". What it is, is a criminal operation, is BO involved..."
Thank you for referring to them as banksters. It's the truth. Obama isn't involved he's the opposite. They control too much and the majority was put in place long before Obama got elected. The Gramm Leach Bliley Act and Tax Reform Act- both authored by GOP, fully work to give banks a de-regulated irresponsible legalized collusion advantage over the rest of us. If it took decades of corruption to build this machine, how did you expect ONE MAN in FOUR YEARS with massive opposition to-- fix it?
The change is going to hurt people like you the most. You failed to learn anything and believe people you listen to on the radio. Who do you think sponsored them? It isn't Obama but it very well could be Romney. He donated millions to 501(c)(4) charities-- that turn out to be shill shells owned by the Koches and Karl Rove.
Indeed, QE hasn't worked. The Boards of Directors for the Federal Reserve are the likes of Jamie Dimon... he's the CEO of JPM Chase! Know who the REAL enemy is. It isn't President Obama. Never was. But if you have zillions stolen from the economy and a knack for corruption, you can easily mesmerize the dim-witted to believe he's the Devil.
BTW... the total global currencies including derivative contracts (a JPM Chase invention) comes to at least $1 quadrillion. As for graft and kick backs going to Congress, a Democrat named Levin had to draft legislation to rein in 'extraordinary gains' by GOP in Congress using Insider Information to bolster their own wealth. Haley Barbour has already admitted that extreme wealth gave each GOP member in an elected Office $5 million in an offshore account for their "loyalty". You are mighty far from knowing who the enemy is, my friend... but if you look in the mirror you'll know him right away.
"Start of the end - Ending of GLASS-STEAGALL Act in 1999 started in 1933. Does anyone see the reason for this in 1933? Go back and read history."
Glass Steagall didn't END. It was suppressed by the Gramm Leach Bliley Act. All we need is to effectively RESTORE Glass Steagall without the Party of NO to interfere and force language in it that weakens it's great strength. Say what you will about divide in Congress, but no group has been as lethal to ALL Americans as the fully funded by corruption- GOP. No Tea and no Republican need re-apply for their roles. If either of these two parties wishes a future voice in America, it needs to take down it's own bad characters NOW by voting them OUT. I truly believe there are people with better ethics and the heartful desire to help America. THESE need to be in Office, not those who sell their souls for the MILLIONS in now takes just to compete and campaign.
Start of the end -
Ending of GLASS-STEGALL Act in 1999 started in 1933.
Does anyone see the reason for this in 1933?
Go back and read history.
What good has he done? He has not brought our jobs back. He has not done anything for the economy, except spend money foolishly...then print more. Has no idea how to fix the education system. His solution is to hand out the morning after pill and condoms to very young people who should be concentrating on their biology, chemistry, and algebra homework instead of having pre marital sex, and killing babys. He is very afraid of the true citizens of the United States, and wants to take our freedoms away, while he lets anyone from anywhere across our borders and gives them our hard earned tax dollars, Just so he can buy future votes. I think he has this backwards. He claims he is of the christian faith...TEE HEE HEE! He supports abortion, same sex marriage, and can't stand Israel. Doesn't sound very christian to me. People listen to what he says, but more importantly watch what he does. Do your research. He is sneaky. He is of the moral caliber of slick willy Clinton. We don't need or want this guy.
He had his chance. Have you seen what is in his Obama-care? Are you kidding me! What a joke.
This guy is a wacko! 4 years is enough of this tyrant. Lets kick him to the curb...and take the trash out. We want a strong moral society. Not someone who caters to the give me something for nothing crowd, and the well...sickos!
Wow! Did I get on a Fox news post by mistake? A lot of haters typing away. Sorry guys but your in for
big disappointment in November. Suggest the people who hate this President/Country to self deport yourself to Mexico
and see how that works out for you.
Obama could have done more to rein in Wall St. in his first term. But, given a second term, it's reasonable to believe that he and the Democratic Party will do even more, if not obstructed by the Republican Party. The best way to support this scenario is to vote Democrat rather than Republican.
(Just what is the thumbs down record, anyway?)
Dexter- I have to agree with you about Bin Laden, there was already a rift between Osama and the younger Al-Qeda members. He was a liability and they wanted him out of the way. Pakistan was tolerating him only for Osama's family money. I am not taking anything away from our Brave SEALS, they had a tough job, but it seems funny that after so many years our Intel groups suddenly began catching courriers and getting specific locations.
Back to the article, the Obama campaign in 2008 had more donations from the Big Banks and Wall Street firms than did McCain by 2 to 1. They knew the could get away with anything once Obama was in office and that with Bernanke reappointed there would be no consequences. Bernanke has made a fortune, Obama has probably made a fortune through George Soros and the Big Banks and Wall Street have made a fortune. Who says organized crime doesn't pay, you just have to be in government.
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