The latest ploy that the Obama stooges in congress has come up with is to pass the so-called financial reform bill. This legislation crafted by Rep. Barney Frank (D-Fannie Mae) and Sen. Chris Dodd (D-Countrywide) that would ramp up regulations of financial firms in an effort — so Democrats claim — to avoid a recurrence of the collapse and ensuing bailouts of 2008. The bill is scheduled for a first test vote Monday.
As The Wall Street Journal reports, “The legislation would grant the federal government the power to seize teetering financial giants and dismantle them the same way the Federal Deposit Insurance Corporation now can seize failing banks. It would create a new financial consumer regulator, would boost the strength and budget of the Securities and Exchange Commission [SEC] and would impose new transparency rules on the trading of derivatives, the complex financial instruments that helped bankrupt Lehman Brothers and nearly wipe out American International Group and Merrill Lynch.”
The only problem in my mind is that “too big to fail” is a buzz word to mean we cannot let these large financial institutions that were previously called bank to fail or else the campaign financing money that the big houses on Wall Street have contributed to lect Obama in the 2008 presidential election. Unknown to me is the amount their Lobbyists gave to the election campaigns of the congressmen and senators who crafted this horrendous bill!
To refresh all who bother to read this posting I want to remind you that these institutions theat are deemed to big to fail gave the following amounts to Obama’s campaign:
Obama took $994,795 from Goldman for his 2008 campaign, as well as $701,290 from Citigroup, $695,132 from JP Morgan Chase, and $514,881 from Morgan Stanley. (John McCain’s biggest donor among this Big Four was Citigroup, which gave him $322,051.) Obama has numerous other ties with Goldman. Also, while Goldman lawyers negotiated with the SEC, its Chief Executive, Lloyd Blankfein, visited the White House four times. source: Patriot Post
This is ignoring the important fact that this Bill that Obama is pushing makes two categories of banks. The large ones whom the government will back what ever they decide to invest in, even if it looses millions. But the small banks, the heart of small town banking is put in a category that will allow them to fail. I wonder how much money these Banks donate to the democrats and Obama? Probably very little!
As the lead article of the Patriot Post says: “this financial “reform” bill is like every other big government power grab in the last two years. The goal is to further the Left’s agenda, and to reward Democrat constituents, who, these days, include the very Wall Street “fat cats” that Obama has been cynically denouncing. Besides, the root of all these problems was, and is, government itself, starting with the subprime mortgage mess, and the subsequent collapse of Fannie Mae and Freddie Mac. Why are they not covered by this so-called reform?”
That is a question that needs to be asked and answered!