Wednesday, April 14, 2010

No/Nothing Repubs say no to financial reform.

Republicans say they are totally opposed to financial reform. So, what is it that they oppose? The No/Nothing Repubs:

  • Don’t want consumer protections,
  • Want to keep writing checks to bail out financial firms that fail,
  • Don’t want any advanced warning systemm to detect systemic risks,
  • Don’t like transparency in banking,
  • Think loopholes in current law that allow risky and abusive practices are okay,
  • Don’t want supervision of banks by the Fed,
  • Don’t want shareholders to have a say on executive pay and corporate affairs in financial firms,
  • Don’t want protection for investors, and
  • Don’t want regulators to enforce the regulations already on the books.

What do Republicans want to do about financial reform? Nothing. Nothing at all.

Here is a summary of the key provisions of the Senate version of Financial Reform.

Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.

Ends Too Big to Fail: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

Advanced Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.

Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go on unnoticed and unregulated - including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

Federal Bank Supervision: Streamlines bank supervision to create clarity and accountability. Protects the dual banking system that supports community banks.

Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation.

Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.

Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefit special interests at the expense of American families and businesses.

Read a full summary of the Senate bill here:

To see a comparison of the House and Senate versions of Financial Reform go here:

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