Sunday, March 21, 2010

in dodd we trust

what happened to consumer protection in the senate this month was  previously documented on this blog, so we’re picking it up from there…as advertized, last monday dodd introduced an all new financial reform bill, replacing the corrupted compromise worked out earlier this month…for those who believe something meaningful will survive the lobbying & who want to take this seriously, here is the text of the proposed bill…its only 1,336 pages long…if you’re interested in a shorter summary, from the WSJ: Factsheet: Senate Financial-Regulation Bill (as provided by dodd’s committee)

for the skeptics, we give you “in dodd we trust”:

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In Dodd We Trust
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for more serious analyses , link to the following…

an Op-Ed from the NYtimes: Why Consumers Can’t Trust the Fed

Financial Regulation -- not as ugly as it looks - At first glance, it is tougher and better than I had expected.   Readers beware: it’s not a pretty piece of work.  Kids! Do not read this at home. It makes the prospectus for a subprime mortgage-backed security look like a model of clarity. The bill is full of murky exclusions, exceptions and hair-splitting -- usually a red flag that our elected representatives have capitulated to big-money interests and disguised the bombshells behind eye-glazing boilerplate.

from Mish: Useless Regulation: Dodd Bill "Empowers" Fed To Do Nothing

from simon johnson: Does Meaningful Financial Reform Have Any Chance? - The lobbyists did their job a long time ago.  Treasury sent up a weak set of proposals – Secretary Geithner apparently felt that to do otherwise would be just to seek “punishment” for past wrongdoings; there is too little concern at the top levels of this administration regarding what comes next.  And Senator Dodd was pushed hard by various interests to weaken all potentially sensible proposals – including anything that would bring greater transparency and safety to the derivatives market.

What would Goldman Lobbyists Hate About the Financial Reform Bill? by Mike Konczal - I actually read this bill as if I was a Goldman Sachs lobbyist, looking for all the sections that I hated and made a list of what items I needed to lobby hard on to kill or modify. My final verdict, by the time I got to the end? If I was a Goldman lobbyist, I’d probably shrug and go “eh, pass it.”What’s there to object to? More practically, what’s this bill really going to do? Let’s go through some specifics, from the point of view of a Goldman lobbyist: (continue reading)

from Konczal again: Lobbyists Cleaning House, CFPA, FSOC composition - I’ll probably alternate between snarky and serious financial reform blogging to keep myself sane. And right now I’m trying to think of a good metaphor to watch next week’s lobbying and amendment efforts during the markup of Dodd financial reform bill. There’s going to be a massive lobbying effort, and since there’s little that is really worrisome in the bill that has to go, the lobbyists can go after everything they want, and I’m sure whoever will be that 60th vote will give it to them.

and there’s also an interesting benefit for our alleged benefactor: Is there an alternative to exchange-traded CDS?It’s pretty obvious that the exchanges, especially the big ones like the CME Group, would love to see everything consolidated with them. And they’re in luck: that’s exactly what we see in the Dodd bill. I’m sure that makes for happy pillow talk in the Dodd household: Dodd’s wife, Jackie Clegg, is a director of the CME, which paid her $153,219 in 2009; she also owns shares in the company worth about $235,000.

1 comment:

  1. Excellent:
    Some nice snipets of what the real deal is.
    Again we have legislation written by, and for the lobbyists that they represent.
    Just like the HC bill.
    Dodd should have never had anything to do with any finance reform.
    These are not reforms. these are adjustments.
    Consumer Protection and Federal Reserve is an oxymoron.
    More consolidation of the wealth by the elite, for the elite.