Tag Archives: Regulation

Keep Wall Street risks away from Main Street | islandpacket.com

The four biggest banks — JPMorgan Chase, Citigroup, Bank of America and Wells Fargo –now control more than two-fifths of all bank deposits, more than 66 percent of all credit card accounts and more than half of all mortgages in the U.S.Unfortunately, they also run trillions of dollars in risky trading ventures that could blow up in our faces again.We need to keep risk where it belongs — on Wall Street — and security where it matters — on Main Street. That way, if the derivatives cowboys want to take obscene risks, they can but without driving the rest of us to the brink of financial oblivion.

via Keep Wall Street risks away from Main Street | islandpacket.com.

via Keep Wall Street risks away from Main Street | islandpacket.com.

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Regulators Resist Volcker Wandering Warning of Too-Big-to-Fail – Bloomberg.com

Dec. 15 (Bloomberg) — Paul A. Volcker visited nine cities in five countries in the past eight weeks to warn that bankers and regulators “have not come anywhere close to responding with necessary vigor” to the worst economic crisis in 70 years.

“There is a lot of evidence that financial weaknesses brought us to the brink of a great depression,” Volcker, 82, said Dec. 8. at a conference in West Sussex, England. He told executives there that the changes they’ve proposed are “like a dimple.”

Two years after the start of the deepest recession since the 1930s, no U.S. or European authority has put in force a single measure that would transform the financial system, based on data compiled by Bloomberg. No rule- or law-making body is actively considering the automatic dismantling of banks that Volcker told Congress are sheltered by access to an implicit safety net.

There’s little evidence that policy makers are heeding Volcker, the former chairman of the U.S. Federal Reserve.

via Regulators Resist Volcker Wandering Warning of Too-Big-to-Fail – Bloomberg.com.

via Regulators Resist Volcker Wandering Warning of Too-Big-to-Fail – Bloomberg.com.

Robert Creamer: Pass Financial Regulatory Reform – Then Break Up the Big Wall Street Banks

Last Friday, the House passed critical regulatory reform legislation aimed at preventing the recurrence of the kind of financial meltdown that devastated our economy at the end of the Bush administration.

The lobbyists from Wall Street worked hand-in-glove with the Republicans, and a few Democrats, to try to kill the bill. Astoundingly, the Republicans argued that Wall Street should continue to be free to engage in the same reckless speculation that led directly to 10 percent unemployment and required the taxpayers to inject hundreds of billions into the markets so that the geniuses of private finance would not plunge us all into the abyss of another Great Depression.

With no regard for history — and here I mean the events of only 12 months ago — the Republicans and Big Banks have the audacity to contend that the creation of jobs and a growing economy requires the lowest levels of regulation and government involvement possible.

Here’s a news flash: we tried it your way for eight years. The results: the lowest level of job creation of any eight-year period since World War II; all of the country’s economic growth was siphoned off by the top 2 percent of the population and the financial sector; and the economy imploded. Sure — let’s try that again.

The Republicans even had the brazenness to convene a convocation of 100 Wall Street lobbyists last Wednesday to plot how they could completely kill financial regulatory reform. They failed, largely due to the great work of Americans for Regulatory Reform, House Speaker Pelosi, Finance Chair Barney Frank and intensive lobbying from the Obama administration.

via Robert Creamer: Pass Financial Regulatory Reform – Then Break Up the Big Wall Street Banks.

via Robert Creamer: Pass Financial Regulatory Reform – Then Break Up the Big Wall Street Banks.