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Dodd's Dud



Shocking! Dodd and the Senate forget to take care of the cause of the financial crisis - Credit Default Swaps.

By Robert Oak - Economic Populist

You may be wondering why you haven't seen a post overview on the latest Senator Dodd's Financial Reform Bill, Restoring American Financial Stability Act of 2010 (link has legislative summary and text). That's because, as usual, it's a dud.
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Firstly a few summary points are listed here. The Huffington Post has a list of other criticisms, including the political on Dodd 2.0. Also, yet another New York Times op-ed points to the well known fact, putting the CFPA under the Federal Reserve will de facto kill consumer financial protection.

Make no mistake, the Republicans aren't in the people's camp either on this, now looking to just run out the clock.

Paul Volcker, testifying before the House Financial Services Committee, who has been blown off in his policy recommendations by the Dodd Dud, testified that regulators cannot be trusted to do anything (and isn't the proof in this pudding!) and this is why you need to break up commercial banking from investment banking.

In my opinion, it's very unlikely that the regulators and supervisors would evoke a strict prohibition until a crisis came and then it's too late," Volcker said. "That's why you want it in legislation."

More at Economic Populist


Michael Collins March 18, 2010 - 11:25pm
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( categories: Globalization )

Yep

I'm shocked at this news I tell you, but not surprised. This is what I’ve come to expect, Sad. Nov. is coming soon and I have no idea what I should do. It will be steelhead fishing first then if time permits maybe I’ll vote local only. Sad

jo6pac March 18, 2010 - 11:37pm
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Fishing is good

My wife asked me if I planned to vote after the screwing we're taking from Obama's POS health care bill. I said 'I'll find something else to do.' Now I know. Thanks. This will be the first election I've ever skipped and I'm doing it intentionally.

Michael Collins March 19, 2010 - 2:32am
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I probably will..

If only because my state now does all voting by mail now, meaning that you have to be aggressively lazy not to do it. (Which I still think is a good thing..) Also, my local finger-to-the-wind swing-district Congresscritter announced that he wasn't running for re-election, producing a genuinely interesting contest to see who/what replaces him.

--
-Geoduck

geoduck March 19, 2010 - 6:09am
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Write in

Not voting is seen as apathy, not protest. Vote against these clowns.

nihil obstet March 19, 2010 - 2:11pm
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My non voting status is provisional;)

The only way non voting could work would be a massive campaign, well publicized, where 60-70% of registered voters failed to show up. That would be about 85% of adults eligible to vote. But you're right, they're vexed if things don't play out their way.

In some ways, the Dodd bill is the most significant insult since it ignores the core issue of the current troubles. But Dodd doesn't care. He doesn't have to.

Michael Collins March 19, 2010 - 9:35pm
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Politics

is bad for my health. Kind of like junk food.

yogi-one March 19, 2010 - 6:44am
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Voting.....

kinda like the lottery---Game's probably rigged, but if you don't play, you can't win.

As for Dodd and Bank Reform--trouble with all this (big money in Politics), is that you can get into office knowing they're all crools who need to be prosecuted, but as you wade through the procedure, you start talking to people and find, as you talk, they don't seem as monstrous in person as when viewed remotely, through the lens of their activities. Thus it becomes more difficult to emotionally distance oneself from the painful necessity of the job of making these guys account for the injury they caused.

Later still the Money itself becomes more important, as the legislators learn they can live beyond their means while on the Federal Tit.... In any case, the present environment in DC is heavily stacked against Honesty in Politics, so I'm never surprised at new tales of Corruption, only saddened that yet one more had fallen....

-5.75,-4.05
"God gives men a brain and a penis, and only enough blood to run one at a time." -- Robin Williams

justadood March 19, 2010 - 12:30pm
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Yep

here's a little more dud, they almost sound like the sen. gramham and wendy. This came from CR then

http://latimesblogs.latimes.com/money_co/2010/03/chris-dodds-wife-and-her-strange-entanglement-with-derivatives-trading-.html

jo6pac March 19, 2010 - 6:00pm
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Senate panel passes sweeping financial-regulation bill

Washington Post, By David Cho and Brady Dennis, March 23

The Senate banking committee voted along party lines Monday to transform the regulation of financial markets, sending another piece of far-reaching legislation to the full Senate a day after Congress approved an overhaul of the nation's health system.

After Republicans decided to save their objections for the Senate floor, Sen. Christopher J. Dodd (D-Conn.), the committee chairman, pushed forward with a financial-regulation bill that sheds several compromises reached with opposition lawmakers and instead hews more closely to the blueprint advocated by the Obama administration.

They sicken of the calm, who knew the storm.

Raja March 23, 2010 - 12:24am
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