edge540 wrote:
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You are right, and that is one of the reasons that there has been no meaningful financial reform passed by the Obama Administration and the Democratic controlled Congress. Not that it would have happened with a bought Republican Administration either.
Yeah well I know for certain that republicans would NEVER do this:
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Obama announces dramatic crackdown on Wall Street banks
Obama's 'new Glass-Steagall Act' will prevent banks with customer deposits taking risky investment bets
http://www.guardian.co.uk/business/2010 ... eet-reform Obama's speech today would have done nothing to prevent the meltdown we had. His proposals would not and will not affect Fannie Mae, Freddie Mac, AIG, or Lehman Brothers. And he is well aware of it. It is populist rhetoric that he knows is either irrelevant or will be gutted.
Barney Frank said ...
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Frank said any mandate to make banks sell hedge funds or private equity immediately would be a mistake.
"I will be supportive of this with no less than three, maybe five years before it's done," he added. "To order this to be all done all at once, it would be a fire sale and I would be opposed to that happening."
And here is an article already from wall streets perspective ....
http://www.businessinsider.com/big-banks-have-already-figured-out-the-loophole-in-obamas-new-rules-2010-1Quote:
Big Banks Have Already Figured Out The Loophole In Obama’s New Rules
Big banks have already begun poking the holes in Obama’s new rules—holes they expect their banks to pass through basically unchanged.
The president promised this morning to work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit.
But sources at three banks tell us that they are already finding ways to own, investment in and sponsor hedge funds and private equity funds. Even prop trading seems safe.
A person at one big Wall Street
bank said it expects that new regulation will affect less than 1% of its overall business.
The key phrase is “operations unrelated to serving customers.†The banks plan to claim that much of the business in which it engages is related in one way or another to serving customers. Even proprietary trading, for instance, can become related to customer service if it is done through internal hedge funds in which some outside clients are permitted to invest.[/quote]
I guess the banks got something for all the money they gave Obama, Frank and Dodd.
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