Obama's Bold Plan for Bank Reform Likely to Founder in the Senate

[tekisui]

Source: Guardian

The White House's push to overhaul America's system of financial regulation is facing heavy dilution in Congress, and a key measure to ban Wall Street banks from risky trading is likely to be watered down or dropped entirely from legislation.

In an effort to get Senate Republicans on board, President Barack Obama is ­facing the prospect of major compromise. In addition to a rethink of the so-called ­"Volcker rule" banning banks from proprietary trading, the administration is struggling to win support for a new consumer financial protection agency, which was intended to be the centrepiece of the reforms.

Treasury secretary Timothy Geithner summoned key banking lobbyists to a meeting in Washington today to try to win support for re-hashed legislation. Groups attending included the American Bankers Association, the US Chamber of Commerce and the Financial Services Forum, all of which are sceptical about legislative restrictions on Wall Street's activities.

Even the Federal Reserve's chairman, Ben Bernanke, is doubtful about prospects for the Volcker rule, which, as outlined by the administration in January, would prohibit banks from running hedge funds or from trading with their own money. Bernanke told the Senate banking committee this week: "I think it would be difficult to do on a purely legislative basis because of the potential for unintended consequences."

more: http://www.guardian.co.uk/business/2010/feb/25/obama-bank-reform-failure

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[FrenchieCat]

1. Not if we don't let it.

We do have a say....
so we need to make noise!

[Oregone]

4. Noise?

Yeah, that worked real well with health reform. Try making noise and people tell you to shut the fuck up and toe the party line through each and every capitulation.

[brand404]

2. Right on Cue - Democrats buckling in the name of Lobbyist Money.

If there is ANYTIHNG that involves big money to be made then decisions will always, ALWAYS go in the direction of big money...and so in this case less meaningful reform will win...i never expected any chance for the "Volcker rule" to make it far.

[LatteLibertine]

3. Yep contact your Reps and Senators

Let them know folks that refuse to work towards real financial sector reform will be voted out of office regardless of party tag.

One way or the other, privatize the profits and socialize the losses must end. Keep changing them until we get one in office who responds.

Even so called "Joe six pack" has figured out how the Wall Street casinos function. People aren't buying it anymore and rhetoric condemning those activities are not enough.

When they saw how we dealt with the S&L crisis it gave them the idea for everything that lead up to 2008.

[krawhitham]

5. IT'S OBAMA'S FAULT

because everything is his fault