Friday, April 15th, 2016

Watered down version of Financial Reform Bill passes

A watered down Financial Reform Bill mocks Mainstream America.

In a morning showdown Senate and House reached a deal and a watered down measure passed. The Volcker rule banning banks prop trading was softened to 3% allowance and banks/Wall street gets to keep derivatives business. In other words in the final moments Wall Street scored a victory and the concept of this sweeping financial reform is just another hollow victory for Obama administration and Main street. There are other good measures in the bill for public. Wall Street still survived intact. The markets are stable today. They got what they wanted and lets see if these jockeys will let Horse up and let it run. They are digesting the news at the moment and taking it and you will see the action in the charts soon.

According to Huffington Post ” The two most high-profile provisions were the last items to be considered. Neither emerged intact. One would have forced banks to stop trading financial instruments with their own capital and give up their stakes in hedge funds and private equity funds, named after its original proponent, former Federal Reserve Chairman Paul Volcker. The other would have compelled banks to raise tens of billions of dollars because they’d have to spin off their derivatives-dealing operations into separately-capitalized affiliates within the bank holding company, pushed by Senate Agriculture Committee Chairman Blanche Lincoln. As currently practiced both activities are highly lucrative, annually generating billions for the nation’s megabanks.”

Ultimately, despite widespread approval among those pushing for fundamental reform in the wake of the worst financial crisis since the Great Depression, yet perhaps aided by near-unanimous revulsion among those on Wall Street, both were watered down in front of C-SPAN cameras ”

So for now its over and Wall Street has survived intact. In fact Wall street scored a victory. Meanwhile its a hollow victory for Obama administration and Main Street America.

Can the Market should move up now ? Oh Please..

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One Response to “Watered down version of Financial Reform Bill passes”
  1. John Van Deusen says:

    How great it would be to hear our congressional warriors for the American way stand united against unfair competition if Google were to announce that it was entering the business of insuring their own risk artifacts and arbitraging contrived, incomprehensible derivatives, all underwritten by a public petrified of having “bing” as their only search engine.

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