Senator Chris Dodd's (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort by the federal government to seize control of financial institutions with the potential to cause a financial market meltdown. Sources in the Senate tell me that the true effect of this bill will be to lock in the Troubled Assets Relief Program (TARP), give special treatment for the trading partners of financial institutions facing bankruptcy, and grant more power to the Federal Reserve Board in Washington over monetary policy. This financial regulatory reform effort will create a massive new bureaucracy that will oversee financial institutions that will effectively serve as a Big Brother for Big Business.
From a Senate Banking Committee press release
“It is the job of this Congress to restore responsibility and accountability in our financial system to give Americans confidence that there is a system in place that works for and protects them," Dodd said at the press conference. "We must create a sound foundation to grow the economy and create jobs."
The problem is that the big government approach to the financial regulatory reform effort may harm economic growth and grants sweeping new political powers to the Federal Reserve over monetary policy. The big ticket item for the legislation is the creation of a new federal bureacracy called the “Consumer Financial Protection Agency.” The discussion draft of the legislation describes the new agency as “an independent watchdog to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, while prohibiting hidden fees, abusive terms, and deceptive practices.” The fact of the matter is that this new government entity distracts freedom loving Americans from many other disturbing aspects of this bill that will grow government and harm economic prosperity.
The discussion draft “prevents excessively large or complex financial institutions from bringing down the economy” by “creating a safe way to shut them down.” They create a “Agency for Financial Stability” to be government entity to replace the free market forces. If these banks fail, they will avoid a bankruptcy proceeding, like any other business, and their creditors and trading partners will be bailed out by the federal government. If you liked the Bailout of Wall Street, then you will love this legislation because it makes permanent a mechanism to place these private entities into a federal receivership (government control) then bail out the people doing business with them under the promise of the cost “ultimately be charged to financial firms.” A senior Senate staffer on financial service issues tells Big Government that this provision “treats financial companies different from everybody else "“ everybody else has to go to bankruptcy."
Another objectionable provision would give control of the Regional Federal Reserve Banks to the Chairman of the Federal Reserve. Sources in the Senate tell Big Government that this provision grants Chairman of the Federal Reserve Ben Bernanke “more political influence over monetary policy.” Sources say that "if you are not going to abolish the Fed, the changes that they make to the regional Fed Board undermine the part of the fed that works the best." Currently regional board members of the Fed do not answer to the Chairman of the Fed. Usually the “dissenters to easy money are regional Presidents,” because they are independent. The reform in this bill would give control of the regional Feds to so called reforms that “will concentrate power in Bernanke.” The bill might take away some regulatory power from the Fed, “but (the bill) gives the Washington Fed more power over monetary policy. The grave danger is that ” Bernanke lackeys” will be running monetary policy. John Taylor, Professor of Economics at Stanford University, argues that the “loss of Federal Reserve independence is a serious problem, especially at this time of rapidly increasing Federal debt and a greatly expanded Federal Reserve balance sheet.”
There are many objections to the Dodd approach to financial regulatory reform for those that believe in the free market and love freedom, but these provisions mentioned rise to the level of the most objectionable. Financial regulatory reform will create a massive new bureacracy, grow government and make politicians feel better, yet the true effect may be to make our financial sector more insulated from free market forces and give unelected bureacrats the power to run banks and financial services companies. Dodd’s Big Brother for Wall Street approach to financial services reform may do more harm than good for capitalism and economic growth.
GA_googleFillSlot("bh_post_before_comments"); 303784 Commentshttp://biggovernment.com/2009/11/14/congress-creating-big-brother-for-wall-street/Congress+Creating+Big+Brother+for+Wall+Street2009-11-14+13%3A31%3A01Brian+Darling uberVU - social comments - November 14th, 2009 at 6:42 amSocial comments and analytics for this post…
This post was mentioned on Twitter by AZgrassroots: Congress Creating Big Brother for Wall Street http://bit.ly/QQkzX #dripusa #ocra #tcot…
Cowboy Logic - November 14th, 2009 at 2:07 pmCatastrophe Cheis Dodd is just the Regulator that is needed to Regulate Wall Street. Especially now that he has already gotten his Jumbo Mortgage and his own Insider Dealings completed.
What a hypocrite.
Liberty666 - November 14th, 2009 at 2:13 pmDodd has to go, why the great people of Connetticut keep voting for this bum is amazing, please stop,
About banking plan, federal reserve, obama administration, dodd financial, dodd plan, senate plan | Find me About - November 14th, 2009 at 7:14 am[...] Senator Chris Dodd’s (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort …Read Original Story: Congress Creating Big Brother for Wall Street – Big Government (blog) [...]
Leave a ReplyName (required)
Mail (will not be published) (required)
Website
/* Loading IntenseDebate Comments..."; idc_ns.parentNode.insertBefore(idc_ld, idc_ns); setTimeout( IDC_revert, 5000 ); /* ]]> */ /* */ GA_googleFillSlot("bh_post_after_comments"); Click Here For More on ACORN Featured Story Congress Creating Big Brother for Wall Street by Brian Darling Senator Chris Dodd's (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort by the federal government to seize control of...
Read more...
More Featured Stories...
GA_googleFillSlot("bg_box_1"); Follow Us on Twitter Subscribe via RSS Got a Tip?Contact us GA_googleFillSlot("bg_box_2"); Live Talk on Twitter new TWTR.Widget({ search: '(@biggovt OR biggovernment) -RT -pronlinenews -davegj', id: 'twtr-search-widget', loop: true, title: 'What\'s being said about', subject: 'Big Government', width: 300, height: 500, theme: { shell: { background: '#ABCFE7', color: '#ffffff' }, tweets: { background: '#ffffff', color: '#444444', links: '#ABCFE7' } } }).render().start(); Categories ACORN Big Labor Congress Culture Defense Earmarks Economics Education Environment Exclusives Featured Story Healthcare History Justice/Legal Media Criticism News Obama Open Threads Political Humor Politics Pork Report State Politics Tax Reform Tea Party Technology Uncategorized Blogroll ABCNews Ace Of Spades HQ Agence France Press Althouse American Thinker Andrew Sullivan Ann Coulter Associated Press Big Hollywood Bill O'Reilly Blackfive Bloomberg Boston Globe Breitbart.com Breitbart.tv C-SPAN Camille Paglia Charles Krauthammer Chicago Tribune Christian Science Monitor Christopher Hitchens Claremont Institute Commentary Daily Gut Dana Loesch Dennis Miller Radio Dennis Prager Der Spiegel Don Surber Drudge Report Economist Ed Driscoll Financial Times Forbes Foreign Affairs Founding Bloggers Fox Nation Fox News Freakonomics Blog Gateway Pundit GayPatriot George Will Glenn Beck Hot Air Huffington Post Hugh Hewitt Human Events Instapundit Investors Business Daily Iowahawk Jawa Report Jerusalem Post John Gibson John Nolte John Romano John Tierney Larry Elder Larry Kudlow Lars Larson Laura Ingraham Law Hawk Little Green Footballs Los Angeles Times Lucianne.com Mancow Manhattan Institute Marginal Revolution Mark Levin Mark Steyn Media Research Center Mediaite Melanie Morgan Michael Barone Michael Savage Michael Yon Mickey Kaus Mike Flynn Move America Forward MSNBC National Review National Review's The Corner Neal Boortz New Republic New York Magazine New York Post New York Times NewsBusters Newsweek Pajamas Media Parcbench Pat Dollard Patterico's Pontifications PoliGazette Politico Power Line PR Newswire Pravda Quincy News Real Clear Markets Real Clear Politics Reason Reason Hit and Run RedState Rep. McCotter YouTube Channel Reuters Roger L. Simon Roger Stone Roll Call Rolling Stone Rush Limbaugh Rusty Humphries Salon Sean Hannity Silicon Alley Insider Slate Smoking Gun South Park Episodes Tammy Bruce The Daily Beast The Hill The New Ledger Thomas Sowell Time Times U.K. Townhall.com U.K. Daily Mail U.K. Guardian U.K. Telegraph U.S. News USA Today Vanity Fair VodkaPundit Volokh Conspiracy Wall Street Journal Washington Examiner Washington Post Washington Times Weekly Standard WorldNetDaily var gaJsHost = (("https:" == document.location.protocol) ? "https://ssl." : "http://www."); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); try { var pageTracker = _gat._getTracker("UA-715222-4"); pageTracker._trackPageview(); } catch(err) {} /* Tags: bank bailout, Ben Bernanke, Consumer Financial Protection Agency, credit card fees, Federal Reserve, mortgage, predatory lending, Senate Banking Committee, Senator Chris Dodd, TARP, Wall Street bailout Posted Nov 14th 2009 at 6:31 am in Congress, Economics, Featured Story | 303784 Commentshttp://biggovernment.com/2009/11/14/congress-creating-big-brother-for-wall-street/Congress+Creating+Big+Brother+for+Wall+Street2009-11-14+13%3A31%3A01Brian+Darling GA_googleFillSlot("bh_post_before_comments"); 303784 Commentshttp://biggovernment.com/2009/11/14/congress-creating-big-brother-for-wall-street/Congress+Creating+Big+Brother+for+Wall+Street2009-11-14+13%3A31%3A01Brian+Darling uberVU - social comments - November 14th, 2009 at 6:42 amSocial comments and analytics for this post…
This post was mentioned on Twitter by AZgrassroots: Congress Creating Big Brother for Wall Street http://bit.ly/QQkzX #dripusa #ocra #tcot…
Cowboy Logic - November 14th, 2009 at 2:07 pmCatastrophe Cheis Dodd is just the Regulator that is needed to Regulate Wall Street. Especially now that he has already gotten his Jumbo Mortgage and his own Insider Dealings completed.
What a hypocrite.
Liberty666 - November 14th, 2009 at 2:13 pmDodd has to go, why the great people of Connetticut keep voting for this bum is amazing, please stop,
About banking plan, federal reserve, obama administration, dodd financial, dodd plan, senate plan | Find me About - November 14th, 2009 at 7:14 am[...] Senator Chris Dodd’s (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort …Read Original Story: Congress Creating Big Brother for Wall Street – Big Government (blog) [...]
Leave a ReplyName (required)
Mail (will not be published) (required)
Website
/* Loading IntenseDebate Comments..."; idc_ns.parentNode.insertBefore(idc_ld, idc_ns); setTimeout( IDC_revert, 5000 ); /* ]]> */ /* */ GA_googleFillSlot("bh_post_after_comments"); Click Here For More on ACORN Featured Story Congress Creating Big Brother for Wall Street by Brian Darling Senator Chris Dodd's (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort by the federal government to seize control of...
Read more...
More Featured Stories...
GA_googleFillSlot("bg_box_1"); Follow Us on Twitter Subscribe via RSS Got a Tip?Contact us GA_googleFillSlot("bg_box_2"); Live Talk on Twitter new TWTR.Widget({ search: '(@biggovt OR biggovernment) -RT -pronlinenews -davegj', id: 'twtr-search-widget', loop: true, title: 'What\'s being said about', subject: 'Big Government', width: 300, height: 500, theme: { shell: { background: '#ABCFE7', color: '#ffffff' }, tweets: { background: '#ffffff', color: '#444444', links: '#ABCFE7' } } }).render().start(); Categories ACORN Big Labor Congress Culture Defense Earmarks Economics Education Environment Exclusives Featured Story Healthcare History Justice/Legal Media Criticism News Obama Open Threads Political Humor Politics Pork Report State Politics Tax Reform Tea Party Technology Uncategorized Blogroll ABCNews Ace Of Spades HQ Agence France Press Althouse American Thinker Andrew Sullivan Ann Coulter Associated Press Big Hollywood Bill O'Reilly Blackfive Bloomberg Boston Globe Breitbart.com Breitbart.tv C-SPAN Camille Paglia Charles Krauthammer Chicago Tribune Christian Science Monitor Christopher Hitchens Claremont Institute Commentary Daily Gut Dana Loesch Dennis Miller Radio Dennis Prager Der Spiegel Don Surber Drudge Report Economist Ed Driscoll Financial Times Forbes Foreign Affairs Founding Bloggers Fox Nation Fox News Freakonomics Blog Gateway Pundit GayPatriot George Will Glenn Beck Hot Air Huffington Post Hugh Hewitt Human Events Instapundit Investors Business Daily Iowahawk Jawa Report Jerusalem Post John Gibson John Nolte John Romano John Tierney Larry Elder Larry Kudlow Lars Larson Laura Ingraham Law Hawk Little Green Footballs Los Angeles Times Lucianne.com Mancow Manhattan Institute Marginal Revolution Mark Levin Mark Steyn Media Research Center Mediaite Melanie Morgan Michael Barone Michael Savage Michael Yon Mickey Kaus Mike Flynn Move America Forward MSNBC National Review National Review's The Corner Neal Boortz New Republic New York Magazine New York Post New York Times NewsBusters Newsweek Pajamas Media Parcbench Pat Dollard Patterico's Pontifications PoliGazette Politico Power Line PR Newswire Pravda Quincy News Real Clear Markets Real Clear Politics Reason Reason Hit and Run RedState Rep. McCotter YouTube Channel Reuters Roger L. Simon Roger Stone Roll Call Rolling Stone Rush Limbaugh Rusty Humphries Salon Sean Hannity Silicon Alley Insider Slate Smoking Gun South Park Episodes Tammy Bruce The Daily Beast The Hill The New Ledger Thomas Sowell Time Times U.K. Townhall.com U.K. Daily Mail U.K. Guardian U.K. Telegraph U.S. News USA Today Vanity Fair VodkaPundit Volokh Conspiracy Wall Street Journal Washington Examiner Washington Post Washington Times Weekly Standard WorldNetDaily var gaJsHost = (("https:" == document.location.protocol) ? "https://ssl." : "http://www."); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); try { var pageTracker = _gat._getTracker("UA-715222-4"); pageTracker._trackPageview(); } catch(err) {} /* */ Terms & Conditions Privacy Policy document.write(wp_logged_in ? 'Logout' : 'Login'); /* */Social comments and analytics for this post…
This post was mentioned on Twitter by AZgrassroots: Congress Creating Big Brother for Wall Street http://bit.ly/QQkzX #dripusa #ocra #tcot…
Catastrophe Cheis Dodd is just the Regulator that is needed to Regulate Wall Street. Especially now that he has already gotten his Jumbo Mortgage and his own Insider Dealings completed.
What a hypocrite.
Dodd has to go, why the great people of Connetticut keep voting for this bum is amazing, please stop,
[...] Senator Chris Dodd’s (D-CT) approach to overhaul financial industry regulations is scheduled to be debated next week in the Senate Banking Committee with a mark-up of the bill starting in early December. This bill is sold as an effort …Read Original Story: Congress Creating Big Brother for Wall Street – Big Government (blog) [...]
Name (required)
Mail (will not be published) (required)
Website
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
Read more...
More Featured Stories...
Read Full Article »