by Pete the Banker Judd Gregg, known as an independent Senate voice and the ranking Republican on the Senate Budget Committee and Senate Banking Committee member, suggests that the Financial Reform package is a failure, addressing none of major causes of the credit and capital market crisis of 2007 (here).
“In an effort that should be geared toward correcting deficiencies in our regulatory structure, and during a time when we should be focused on economic recovery, this legislation is a failure on both counts. It will not encourage much-needed stability and confidence in our financial markets. It will not significantly reduce systemic risk in our financial sector.”
And he says it won’t do anything to solve the fundamental problems:
“Ironically, the most remarkable feature of this supposedly comprehensive measure is its failure to substantively address the root causes of the 2008 crisis – shoddy underwriting practices and the government sponsored enterprises, Fannie Mae and Freddie Mac. The legislation also includes extraneous provisions which have little to do with preventing another financial crisis…”
Among extraneous items addressed by the bill include debit card fees, payday loans, and pawnbrokers. And, of course, in the tradition of the Democrat drafted legislation of the past year, the bill contains subsidies inclusive of further mortgage relief funding.
The House passed the reconciliation version of this Bill before recess last week. The Senate is unlikely to pass it until they return from the Fourth of July recess. Senators Scott Brown, Collins, Snowe, Grassley, and of all people Senator Feingold have not definitively indicated whether or not they will support the House reconciliation version of the Bill which removed further bank taxes instead relying on existing TARP funds to replace the taxes.
Tell ’em where you saw it. Http://www.victoriataft.com
