Whatever the fix, the money spent will not be recovered, said Alex Pollock, a former president of the Federal Home Loan Bank of Chicago who is now a fellow at the Washington-based American Enterprise Institute. “It doesn’t matter what you do or don’t do, Fannie and Freddie will cost a lot of money,” Pollock said. “The money is already lost. There’s an attempt to try to avert your eyes.”
Quoting Sen. Gregg, here is the herd of elephants in the room, (no mention of these two in the Dodd financial reform bill):
June 14 (Bloomberg) — The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.
Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.
“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry.
WASHINGTON—U.S. senators took a major step toward passage of a broad revamp of U.S. financial markets Thursday as Democratic leaders were able to secure support from both sides of the aisle to put a close to debate.
The Senate voted, 60-40, to limit debate on legislation that would change the way mortgages and credit cards are regulated, financial firms interact with regulators and boost the government’s ability to deal with systemwide failures. A handful of Republicans voted with Democrats to invoke what is known in the Senate as “cloture.”
The vote puts a hard cap on the amount of time the Senate has to debate the 1,500-plus page piece of legislation, and clears the way for the Senate to take a final vote on the measure as soon as Thursday evening. Senate Democrats would need to clear a handful of procedural hurdles for that to occur, but leadership was discussing the possibility, according to several congressional aides.
This is the massive hidden problem that no one in the Beltway is talking about; Republicans included:
I am currently reading this bill and wanted to drop an interesting tidbit on you. For those interested in reading the 114 page Manager’s Amendment, go here. I am only a couple hundred pages into this POS but starting on page 60, a new government office is to be established. The “Office Of Financial Research” will be part of the Treasury, and will have a Director appointed by the President and confirmed by the Senate. This office will also have a data collection center to keep track of all financial and nonbank financial institutions so as to be able to report to Congress on companies that ‘threaten’ the economy. It is unclear how big or how many new government employees this office will create, but considering how events are unfolding now with Obamacare, I’m assuming pretty large.
The interesting tidbit pertains to the Financial Research Fund that is to be established and the ability of the Office that is providing Congress with reports to invest monies they aren’t using. Let me know if you think that’s a conflict of interest, and if you would like to know exactly how much money that is?
“Funds obtained by, transferred to, or credited to the Financial Research Fund shall be immediately available to the Office, and shall remain available until expended, to pay the expenses of the Office in carrying out the duties and responsibilities of the Office.”
“Shall not be construed to be Government Funds…”. Whose money is it then?
Does anyone find it odd that Bambi ‘holds’ his ground with the republicans but chokes with the Somali Pirates and bows to just about everybody else?
Mr. Kuttner obviously has not read Dodd’s 1400 page masterpiece enough to know that it allows for bailouts in perpetuity (pg 1379). I haven’t even gotten all the way through the book on financial reform and I already know that creating a new government agency with a $500 BILLION DOLLAR YEARLY budget to keep track of every single financial transaction known to mankind, invest money, and then report on the firms they have invested in probably isn’t the best idea. This could be one of the reasons why Barry isn’t budging when it comes to ‘financial reform’. I’m sure there are more progressive ideas tucked inside this bill.
Gerald Celente of Trends Research Institute believes that the financial reform bill being put forward by Chris Dodd is just more dog and pony show coming out of the District. Mr. Celente does not pull any punches in this interview with Russia Today about the players involved and the massive amount of money that is flowing back and forth between D.C. and Wall Street. He even talks about the $10 million that Dodd has received from the financial sector in five years, and Greg Craig slithering from the White House over to Goldman Sachs to help out.
The new financial reform bill coming through has arbitrary rules about the Treasury Secretary deciding who is ‘too big to fail’ and then seizing the company, firing the management, and tell the shareholders to take a hike. Dick Morris explains it well, and the possible fallout for Republicans’ political donations because of it.
The left’s march to ‘fundamentally transform’ America proceeds with Dodd’s 1,336 financial overhaul bill which just passed the Senate Banking Panel, 13-10. When this bill is combined with health care (which is really just a revenue stream for the government to stay afloat a bit longer), amnesty (to ensure Obama’s re-election), cap and trade (to impoverish the American people), and whatever else Bahana C. Obama has in mind (add you own dictate), the transformation/takeover of America will be complete. The PDF of the 1,336 pages can be found here, and the summary can be found here.
March 22 (Bloomberg) — The Senate Banking Committee passed Senator Christopher Dodd’s plan for overhauling U.S. financial- industry rules without considering amendments, setting the stage for a floor fight on the measure after bipartisan talks failed.
The committee voted by 13-10 to approve legislation offered last week by Dodd, the Connecticut Democrat who leads the panel. Opposition by the committee’s 10 Republicans, who declined to offer amendments to Dodd’s measure, could jeopardize the bill’s chances on the Senate floor.
Chris Dodd will be “unveiling” his financial reform bill on Monday. Financial reform? What a freakin’ joke. A sneak peek informs us that The Fed and the pResident are going to control everything…one more step down the garden path folks. When are enough people going to realize that a private banking cartel that is part of an even larger private banking cartel is running this country and the world? End the Fed – NOW!
WASHINGTON — Senate Democrats will press forward this week on legislation to overhaul the nation’s financial system in a critical test of whether Washington can pass reform.
The bill that Christopher J. Dodd, chairman of the Senate Banking Committee, will introduce on Monday appears written with the goal of forging a consensus that can overcome partisan division, with provisions that incorporate ideas from both Democrats and Republicans.
Among the most recent provisions in the bill to emerge, according to people who have been briefed on the draft, is one that would curb Wall Street’s influence over theFederal Reserve Bank of New York. Its president would be appointed by the president of the United States, not by a board that includes representatives of member banks.
Another rule would ban bank officers from sitting on the New York Fed’s board, meaning that Jamie Dimon, chief executive of JPMorgan Chase, would probably have to leave the board.
So who exactly is going to be sitting on the board of the New York Fed? Professors and intellectuals. Why not? We have professional politicians writing healthcare, not doctors.
The legislation would create a consumer protection agency within the Federal Reserve to write rules governing mortgages, credit cards and other financial products, said the people, who insisted on anonymity because the details were still in flux.
I feel all warm and fuzzy inside knowing The Fed has my back….and my clothes, and my wages, and my childrens’, childrens’ children’s wages.
In a concession to liberals, states’ attorneys general could sue violators of those rules, and the agency would have enforcement powers over large banks, mortgage originators and servicers, and other large lenders.
But in a nod to Republicans, the bill would allow a council of regulators, led by theTreasury, to overturn proposed consumer rules by a two-thirds vote. And although the consumer protection agency would have a director appointed by the president, it would be housed within the Fed, an anathema for consumer advocates.
The bill would also reshape the regulatory role of the Fed. It would be entrusted for the first time with oversight of all of the largest and most interconnected financial companies, even if they are not banks. And it would continue to oversee the largest bank holding companies, those with $50 billion or more in assets — about 35 companies, includingBank of America, JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley.
Go over and read the rest, or wait a few hours; it’ll be here.
The first ever national Tea Party convention occurred this past weekend with keynote speaker, Sarah Palin giving a succinct speech, found in it’s entirety, here.
MEANWHILE, the pResident energizer bunny-in-charge continues his totalitarian march to control every aspect of your life even though most Americans have let the District of Criminals know exactly how they feel about Obamacare and financial reform.
At least one message has gotten through his thick head; the injury to the supermajority in the senate with Scott Brown’s election.Given Obama’s inflated sense of self, I am sure he does not realize the tsunami that is about to hit the progressives in Congress.
WASHINGTON (Reuters) – President Barack Obama told fellow Democrats on Saturday this is no time to “lick our wounds and try to hang on” and vowed instead to press ahead with financial regulatory and healthcare reforms.
With his legislative agenda in limbo, Obama sought to rally Democratic activists still reeling from the loss of a pivotal Senate seat last month and now scrambling to head off a Republican challenge in the November congressional elections.
Obama came out swinging at a meeting of the Democratic National Committee, accusing Republicans of caring more about “scoring political points” than solving the country’s pressing problems like high unemployment.
How is it, exactly, that the republicans have stopped Obama’s agenda when the Democrats control the White House, the Senate, and the House?
But Obama presented no new ideas on how the Democrats could overcome obstacles that have stalled his domestic priorities.
This would be because Obama does not come up with ideas himself. It is well known that most of the bills he introduced as a senator were written by other officials. Heck, he didn’t even write his own book.
Hammering one of his biggest challenges, Obama said “America can’t afford to wait” for a financial regulatory overhaul to plug gaps widely seen as the root of the 2008 markets crisis that tipped the economy into deep recession.
Which gaps? The ones the Democrats created so that banks were forced to give sub-prime mortgages or face penalties?
“If we’ve learned anything from the devastating recession, we know that wise regulation actually can enhance the market and make it more stable and make our economy work better,” Obama said. “We can’t return to the dereliction of duty that helped deliver this recession.”
Dereliction of duty? Would that include Nancy Pelosi, Barney Frank, Maxine Waters, and Gregory Meeks, all democrats?
Obama acknowledged that a healthcare overhaul, which once seemed on the verge of passing, will now be subject to a “long and difficult debate.” But he pledged: “I am not going to walk away from health insurance reform.”
His effort to expand health coverage hit a stalemate after Democrats lost their 60-seat “supermajority” in the Senate. They are now trying to decide on a new course.
“The easiest thing to do right would be say this is too hard. Let’s just regroup and lick our wounds and try to hang on,” Obama said. “There are some, perhaps the majority in this town, who say perhaps it’s time to walk away.”
But he insisted to cheers, “I’m not going to walk away on any challenge. We’re moving forward.”
Ah, the expected reaction from a progressive totalitarian who was within the blink of an eye of control of every single American through healthcare.
We must continue to hammer our non-representatives to make sure nothing more is allowed to pass for the next 270 days until we can flip this congress and neuter Obama’s ambitions of domination.
Chris Dodd being interviewed on CNBC about his retirement, the financial crisis, and healthcare. Do not believe this guy when he says that healthcare is hanging by a thread, and then wonder about his judgement when it comes to the final quote.
Health care reform is “hanging on by a thread,” and one or two votes could determine the outcome of the heavily-debated bill, Democratic Sen. Chris Dodd told CNBC Monday.
“Everyone feels, I guess, to some degree who have been for this, that they would have liked something different, and that’s not uncommon when you’re considering an issue of this magnitude,” Dodd said.
AYFKM? How can this guy keep the two ideas of Ben Bernanke being nominated, and banks’ compensation being kept private at the same time?
Dodd also said he thinks it would be a “travesty” not to confirm Federal Reserve Chairman Ben Bernanke’s nomination, and that in the absence of taxpayer money, the government should have no say in banks’ compensation practices.
When legislation coming from an entrenched Washington democrat is close to 1,300 pages, there are bound to be goodies inside. Barney Frank is giving away trillions to the Wall Street Banks, and making sure that bailouts are definitely a event in the future should the poor bankers befall hard times again.
Dec. 30 (Bloomberg) — To close out 2009, I decided to do something I bet no member of Congress has done — actually read from cover to cover one of the pieces of sweeping legislation bouncing around Capitol Hill.
Hunkering down by the fire, I snuggled up with H.R. 4173, the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders.
I quickly discovered why members of Congress rarely read legislation like this. At 1,279 pages, the “Wall Street Reform and Consumer Protection Act” is a real slog. And yes, I plowed through all those pages. (Memo to Chairman Frank: “ystem” at line 14, page 258 is missing the first “s”.)
The reading was especially painful since this reform sausage is stuffed with more gristle than meat. At least, that is, if you are a taxpayer hoping the bailout train is coming to a halt.
If you’re a banker, the bill is tastier. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises.