Sweeping bank reform bill clears House

[OnePimpTiger]

Sweeping bank reform bill clears House

The House passed legislation Friday aimed at preventing the next big financial crisis, ushering in the most sweeping set of changes to the banking regulatory system since the New Deal.

The bill, which passed 223-202, imposes more oversight and stronger capital cushions for the largest banks and Wall Street firms. It forces them to pay a total of as much as $150 billion into an emergency fund that could be tapped when a troubled company needs to be taken over and broken up.

I don't like:

Oversight: It creates a new oversight council that would look out for major problems at large financial firms, giving the Federal Reserve a key role in enforcing tougher regulations on larger firms.

Breaking up: It would also give regulators new powers to break up companies that have grown too big, if they threaten to destabilize the financial system...

...the bill transfers $3 billion from the federal bailout program to provide emergency loans capped at $50,000 to unemployed homeowners to help them prevent foreclosure.

It also would redirect another $1 billion of bailout money into federal neighborhood stabilization programs to redevelop abandoned or foreclosed homes.

The one thing I do like:

Federal Reserve: The bill would allow Congress to order the Government Accountability Office to audit Fed activities, which the Fed says would interfere with the central bank's ability to carry out independent monetary policy.

It's way past time the Fed be audited. They've been able to do whatever they want, control the American economy, without any checks or balances for far too long. But at the same time, the bill gives them more regulatory power and, worst of all, gives the government the right to take over and break up any company they deem "to big to fail." So basically, if you run your company extremely well and grow to be one of the largest banks in the country, the government might take it away from you and demolish it...that doesn't sound socialist at all...

[shortking98]

Yeah, you had to figure they were going to overreact a little after the collapse

[MadMan1978]

No one thought this wouldnt happen ?
now you complain about oversight ?

but it is ok for the CEO of the banks to get a 20 million dollar bonus ?


You cant have it both ways

[OnePimpTiger]

I'm not asking to have it both ways. If a privately held corporation wants to pay their CEO $20 million, they should be able to do that...after all, it is (was) their money.