by Pete the Banker
Referring to the Restoring American Financial Stability Act, Senator Dick Durbin asserts that the bill “substantially reduces the risk the financial markets will cause the economy to implode again…”. Full Article at FOX Business
The Bill does alter the Financial landscape significantly forming the Financial Stability Oversight Council, headed up by the Treasury Secretary, the Bureau of Consumer Financial Protection housed in the Federal Reserve, expands the power and reach of the SEC, mandates removal of third party proprietary trading from the Banks, provides an liquidation process for “imperiled Too Big To Fail” Financial Institutions, and reemphasizes the Federal commitment to lower income individuals to gain access to the financial system.
However the Restoring American Financial Stability Act of 2010 simply establishes a Regulatory Dream World which not only doesn’t reduce the risk of a future financial market and economic implosion, but by largely failing to deal properly with the Housing & Housing Finance crises, Fannie Mae and Freddie Mac, and International Banking and Accounting Standards contributing to the original crisis; largely assures the likelihood that they will recur.
Tell ’em where you saw it. Http://www.victoriataft.com
