by Ryan Grim, The Financial Fix
The Wall Street reform bill headed for a test vote on the Senate floor Monday night will allow the Federal Reserve to continue to pump trillions of dollars into major banks largely in secrecy, the co-author of House language that would open the central bank to an audit charged in a memo to the Senate.
“The Senate has a provision in its reform bill that purports to audit the Fed. But, it really doesn’t do anything of the sort. I’m going to run down the details for you, and reprint the legislative language so you can read it yourself,” writes Rep. Alan Grayson (D-Fla.).
It would not allow the GAO to look into the Fed’s massive purchase of toxic assets, its hundreds of billions in foreign currency swaps with other central banks or its open market operations, among other restrictions.
[read the rest, here]
and as a bonus… I found this at Firedoglake… another lefty blog…. written by masaccio… does it say that ONLY the republicans are unhappy with this “banking reform” bill?… uh, you be the judge…
The common sense reforms the President supports are meaningless in the face of the depredations of Wall Street which have destroyed the lives and fortunes of millions of their fellow citizens.
1. A liquidation authority for institutions of a certain size, which will shut them down with the “… least amount of collateral damage to innocent people and businesses”. I’m sure you and your grandkids can afford that.
2. “Some limits” on the size of banks and the kinds of risks they can take, set by regulators who are appointed by the same people who did nothing last time.
3. Transparency in derivatives. These apply only to “standard” derivatives, an undefined term, to be defined by regulators appointed by the same people who watched Wall Street set fire to your money.
4. Consumer protection. The President thinks banks want to compete offering better products rather than selling confusing and expensive products. OK, that’s funny.
5. Shareholder “say on pay”, and more power to act in corporate elections if the SEC allows it. Mutual funds own most of the stock of these giants, and they have their hands in your pockets just like Wall Street does.
I’m having trouble believing my eyes. This pathetic set of reforms is the change we get to deal with the worst financial disaster in decades? The economy was crushed by an industry which functions on fraud, cheating consumers, wasting money on obviously fraudulent loans, paying itself gigantic bonuses, setting up transactions to screw their customers, raising interest and fees to the sky at the expense of a damaged group of workers, and this is what we get?
This is pathetic. No wonder the Republicans are willing to negotiate from this ludicrous starting point.
Filed under: AIG Heist, Banking Heist, Economic Crisis ie. Disaster Capitalism, economic terrorism, Fake Banking Reform | Tagged: Fake Banking Reform | Leave a Comment »