Senator Dodd and the reform of Financial Institutions (UPDATE)
First the news clip from Bloomberg.com and then my special comment.
"Senator Christopher Dodd unveiled legislation that empowers regulators to break up large financial firms, ban proprietary trading, and oversee hedge funds and derivatives, aiming to enact the most sweeping rules overhaul since the 1930s.
Dodd would let the Federal Reserve force firms to divest holdings if they pose a “grave threat” to the economy, make hedge funds overseeing more than $100 million register with regulators and require central clearing for derivatives, according to a summary released today."
Special Comment:
This crafted legislation was put together by Sen. Dodd. As you may remember, Senator Dodd of Connecticut is not running for reelection, so I wonder where he will land after he leaves the Senate where he has been in government service for over 30 years. I know he deserves to make a living doing something else if he so chooses. But he would face offers of employment from both the Banking and Insurance industry he has regulated all these years. Because I have such deep cynicism and mistrust of our leaders currently, I would hope that Sen. Dodd could put forth legislation which was based on what the America needs to avert another Financial crisis, not something which gives breaks to Wall Street and the Banking and Insurance industry. There is an inherent conflict of interest brewing here. This will be very hard for this Senator or any Senator to do, acting on the Country's behalf rather than from a vested interest. I would like to see him embrace several contentious suggestions.
First, I would like to see the Volcker Rule, (after Paul Volcker, former Chairman of the Federal reserve) included in any proposed legislation. The Volcker Rule would prohibit banks that have access to taxpayer money from engaging in speculative activities, such as hedge funds.
Secondly, I would like to see the Consumer Protection Agency NOT report into the Federal Reserve.
Thirdly, I would like to see Glass-Steagall Act reinstated. If he could get these passed, he would leave us with dignity and would cap his career in a distinguished manner and go down in history as one of the great Senators of this generation, as Sen. Ted Kennedy has on Healthcare.
UPDATE: March 16 3:00pm PST
I received this video link below from NEWSY.com and asked to Embed it here, which adds more validation over my concerns:
"Senator Christopher Dodd unveiled legislation that empowers regulators to break up large financial firms, ban proprietary trading, and oversee hedge funds and derivatives, aiming to enact the most sweeping rules overhaul since the 1930s.
Dodd would let the Federal Reserve force firms to divest holdings if they pose a “grave threat” to the economy, make hedge funds overseeing more than $100 million register with regulators and require central clearing for derivatives, according to a summary released today."
Special Comment:
This crafted legislation was put together by Sen. Dodd. As you may remember, Senator Dodd of Connecticut is not running for reelection, so I wonder where he will land after he leaves the Senate where he has been in government service for over 30 years. I know he deserves to make a living doing something else if he so chooses. But he would face offers of employment from both the Banking and Insurance industry he has regulated all these years. Because I have such deep cynicism and mistrust of our leaders currently, I would hope that Sen. Dodd could put forth legislation which was based on what the America needs to avert another Financial crisis, not something which gives breaks to Wall Street and the Banking and Insurance industry. There is an inherent conflict of interest brewing here. This will be very hard for this Senator or any Senator to do, acting on the Country's behalf rather than from a vested interest. I would like to see him embrace several contentious suggestions.
First, I would like to see the Volcker Rule, (after Paul Volcker, former Chairman of the Federal reserve) included in any proposed legislation. The Volcker Rule would prohibit banks that have access to taxpayer money from engaging in speculative activities, such as hedge funds.
Secondly, I would like to see the Consumer Protection Agency NOT report into the Federal Reserve.
Thirdly, I would like to see Glass-Steagall Act reinstated. If he could get these passed, he would leave us with dignity and would cap his career in a distinguished manner and go down in history as one of the great Senators of this generation, as Sen. Ted Kennedy has on Healthcare.
UPDATE: March 16 3:00pm PST
I received this video link below from NEWSY.com and asked to Embed it here, which adds more validation over my concerns:
Labels: banking and finance, Consumer Protection Agency, Glass Steagall Act, Sen. Christopher Dodd, Volcker Rule
posted by Charles Amico at 7:18 PM
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