Can We Stop Banksters From Killing Financial Reform?
Why Wall Street Is Pleased by the Focus on Debating Healthcare
For the financiers, to their dishonor, have not so much as tendered an apology for their craven, mass departure from prudence, or what Barney Frank, the Democrat representative for Massachusetts, labels their "moral deficiency."
Every day brings more news of their arrogance and avarice.
The Financial Times reports: “US banks stand to collect a record $38.5 BILLION in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s...The fees are nearly double those reported in 2000...
“The Federal Reserve is working on rules on overdraft fees, and rules on customer charges could be a priority of the Obama administration’s proposed Consumer Protection Agency if approved by Congress.”
No wonder the banks want to kill the proposed agency.
Bear in mind, this crisis did not happen by accident or just by some mistakes. It was not an accident argues the The Bond Tangent Blog (Via Baseline Scenario):
Financial institutions did not amass trillions of dollars of toxic assets and tangle themselves up in a destructive web of credit derivatives by accident. Financial institutions did not produce and maintain technology allowing them to take advantage of traditional investors by accident. A thief was not able to operate a multi-billion-dollar Ponzi scheme for decades by accident. We are not talking about the occasional rogue trader here who has bribed his compliance officer. Even within the existing regulatory architecture, these activities required a considerable amount of complacency (to be polite) by financial regulators across agencies, over the course of many years, and through many cycles of political appointees from both parties.
Was it complacency or more like complicity? Nothing is likely to change unless there is pressure from below. And that pressure is not going to come from the right.
So where should it come from?
As for the cost of inaction: Obama spoke to that on July 22: “If we don't pass financial regulatory reform, the banks are going to go back to the same things they were doing before," he said. "In some ways it could be worse, because now they know that the federal government may think they're too big to fail. And so if they're unconstrained (by stricter regulations) they could take even more risks."
Write that down. Put it in a bottle or a time capsule, text it as a memo to yourself on your iPhone and twitter your followers. If the banksters are not brought to heel, we will have survived this crisis only until the next one erupts.