Epiphanyblog

All about ideas…

Mr. President: Senate Financial Regs are not good enough!

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As the Senate readies to take up financial regulation, Noam Scheiber reports,

But, on Wednesday, Obama told Dodd and his House counterpart, Barney Frank, that he could more or less live with either version, according to an official knowledgeable about the meeting. (Though he stressed that he’d like to combine the toughest elements of both, as with an exemption from derivatives regulation for non-financial companies, which is stricter in Dodd’s bill.) Mostly, he just encouraged them to press ahead, emphasizing the win-win dynamic at work.

But I have a different message for the Senate and the President:

Neither the Dodd nor Frank bills will solve the problems created over the last 30 years. Go talk to DE Senator Ted Kaufman or to Mike Konczal or Simon Johnson or Yves Smith or Arthur Cutten (aka Jesse).

No one outside of Wall St and DC thinks the proposals will prevent another financial crisis or create more transparency or restrain unbridled risky speculation.

It’s all smoke and mirrors. And the American public will pay the bill for it.

And speaking of paying bills: JPM is about to get a $1.4 billion tax refund because it bought WaMu. Yep, a little remarked or known tax deduction in the Stimulus plan allows companies to take a deduction on the taxes paid over the last 5 years. TARP recipients are excluded, but JPM is claiming it for defunct WaMu. The deduction was meant for small business, but as usual the big guys are reaping the reward. In addition to JPM, retailer Liz Claiborne is set to receive $167 million and – get this! – defunct Circuit City will get $86 million.

Next time I hear a Congressperson complain about the middle class not paying taxes or about how soft and easy it is for the middle class, I’ll remember to throw these billion dollar tax deductions back at him.

It also appears as those JPM, Lehman, UBS, and others will get away with silver market manipulations (JPM), and municipal bond corruption (JPM, Lehman, UBS, etc).

The more I read about Wall St and DC, the more disgusted I get. Why is everyone so bloody enthralled with Wall St?

Even it’s so-called innovations actually did little to nothing to grow the economy…and now 6 mega-banks control about 67% of the nation’s GDP. Does anyone in his right mind think that’s healthy?

Time to throw out the current Fin Reg bills and start over. Put Ted Kaufman in charge.

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