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Originally Posted by Mikeyy
It's hard to answer something spun so much. If it costs more for oversight it would be cheaper then losing 13 trillion in equity
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Oh my a Federal takeover of the financial sector guarantees no more losses. After all the Federal government is a model of prudent financial management, they are only 14 trillion in the hole on the way to 16 trillion or more by the by the end of this fiscal year the third consecutive one without a budget.
What you see is a sanitized depiction of the "reform" carefully crafted by Wikipedia's Leftist editors.
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1.the consolidation of regulatory agencies, elimination of the national thrift charter, and new oversight council to evaluate systemic risk;
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The new regulatory council is made up of political appointees safely ensconced in the Federal Reserve without dependence on Congress for their budget. An independent group with the power to preemptively seize and liquidate any competitors who prove troublesome to their big bank paymasters.
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2.comprehensive regulation of financial markets, including increased transparency of derivatives (bringing them onto exchanges);
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Just exactly what does "comprehensive regulation of financial markets" mean? Don't we have an SEC to that without resorting to management by junta?
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3.consumer protection reforms including a new consumer protection agency and uniform standards for "plain vanilla" products as well as strengthened investor protection;
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Like its banking analog this new agency is an unaccountable bureau of political appointees buried in the Fed. Do you like paying $5 per month to use your debit card? That is the vanguard of costly consumer protections dictated by these reforms. Next will be a raft of new fees to make credit card holders pay their "fair" share even if you pay off the balance every month. By the time they get done writing the massive new batch of regulations in the WH the Federal government will have virtual control of every credit transaction. Gee, we'd like to give you a loan but the Commissar of Credit says no.
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4.tools for financial crises, including a "resolution regime" complementing the existing Federal Deposit Insurance Corporation (FDIC) authority to allow for orderly winding down of bankrupt firms, and including a proposal that the Federal Reserve (the "Fed") receive authorization from the Treasury for extensions of credit in "unusual or exigent circumstances";
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Translation, more bank bailouts for favored institutions with Congressional oversight. But don't worry, customers get to pay the extra fees to fund the bailouts. Aint "protection" grand.
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5.various measures aimed at increasing international standards and cooperation, including in this section were proposals related to improved accounting and tightened regulation of credit rating agencies
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Good idea, let's have our intrepid band of unaccountable political appointees "regulate" the credit ratings agencies so they don't downgrade our national debt no matter how big it gets, problem solved.
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Sounds like a real power grab huh?
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Yep. It sure does. Glad we can agree.