@Woiyo9,
Woiyo9 wrote:
You know, your ******* arrogance is quite annoying.
Do you want to debate or just act like the child you are and "call names"?
Here is the moving parts of the THING I MISSED...
First, if you’re a financial institution that can borrow from the government, you should be subject to government oversight and supervision. When the Federal Reserve steps in as a lender of last resort, it is providing an insurance policy underwritten by the American taxpayer. In return, taxpayers have every right to expect that financial institutions with access to that credit are not taking excessive risks.
Duh.... Who would you appoint to be oversee'r? What is wrong with the SEC and what would you fix?
The SEC doesn't oversee loans. They oversee the financial disclosures of companies. Those disclosures are filled with unclear verbiage. The SEC also doesn't oversee capital on hand requirements for banks or insurance companies. Those are the Fed and state insurance regulators. As an insurance company AIG is not regulated by the federal government but it is eligible to get loans from the FED.
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Second, we must reform requirements on all regulated financial institutions. We must strengthen capital requirements, particularly for complex financial instruments like some of the mortgage securities and other derivatives at the center of our current crisis. We must develop and rigorously manage liquidity risk. We must investigate rating agencies and potential conflicts of interest with the people they are rating. And we must establish transparency requirements that demand full disclosure by financial institutions to shareholders and counterparties. As we reform our regulatory system at home, we must address the same problems abroad so that financial institutions around the world are subject to similar rules of the road.
Duh... how? Manage liquidity risk? If he can tell me that, I can become rich. Full disclousure is already here with the pounds of paper we get that no one can understand.
No, full disclosure is NOT here. Full disclosure would have required Bear and Lehman to tell the world the particulars of their assets. Those were NOT revealed in any disclosure. Instead investors are required to rely on the statements of rating agencies that are paid by the company they are rating.
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Third, we need to streamline our regulatory agencies. Our overlapping and competing regulatory agencies cannot oversee the large and complex institutions that dominate the financial landscape. Different institutions compete in multiple markets - Washington should not pretend otherwise. A streamlined system will provide better oversight and reduce costs.
Wait. Isn't this the same as above?
You mean there are MORE regulatory agencies than just the SEC? So much for your first argument. By deregulating banks and allowing them to go into areas that aren't controlled by the banking industry we suddenly have complex issues that aren't being addressed.
For instance, a bank can now sell insurance. Both the bank and insurance company have minimum requirements of cash on hand or liquidity. A bank examiner can't tell what the insurance side needs to have and the insurance regulator can't tell what the bank needs. The company can be underfunded but neither examiner would see it because they only see one side of the business compared to the funding.
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Fourth, we need to regulate institutions for what they do, not what they are. Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies. This regulatory framework failed to protect homeowners, and made no sense for our financial system. When it comes to protecting the American people, it should make no difference what kind of institution they are dealing with.
Regulatory framework was not the problem with Sub Prime. It was criminal negligence on appraisors, brokers and lenders and the stupid people who signed on the bottom line.
Actually it WAS the regulatory framework that caused the problems. Lack of regulatory oversight allowed all those loans to be bundled as something better than they were. There was no oversight to insure that the loans were any good to begin with and no oversight to ensure that no institution was packing their balance sheet with loans that were rated AAA when they should have been junk status.
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Fifth, we must crack down on trading activity that crosses the line to market manipulation. The last six months have shown that this remains a serious problem in many markets and becomes especially problematic during moments of great financial turmoil. We cannot embrace the administration’s vision of turning over the protection of investors to the industries themselves. We need regulators that actually enforce the rules instead of overlooking them. The SEC should investigate and punish market manipulation, and report its conclusions to Congress.
Agree but he needs to add liability to the Board of Directors and Executive Officers. What about a tax change relavent to "golden handcuffs"?
First of all, market manipulation isn't the result of Boards and CEOs. It's the result of large hedge funds and other companies moving large amounts of money to buy and sell. The other thing that has exacerbated the problem was the recent change in rules for short trading. There used to be a check on short trading in that you couldn't short a stock except on an uptick. Now you can drive a stock into the ground with short trading and every sale only drives the price down.
As for company execs, "golden handcuffs" were already done against the wishes of many in the GOP. Company executives are finally responsible for their financial reports after Enron. There are still cries to make the regulation go away.
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Sixth, we must establish a process that identifies systemic risks to the financial system like the crisis that has overtaken our economy. Too often, we end up where we are today: dealing with threats to the financial system that weren’t anticipated by regulators. We need a standing financial market advisory group to meet regularly and provide advice to the President, Congress, and regulators on the state of our financial markets and the risks they face. It’s time to anticipate risks before they erupt into a full-blown crisis.
Difficult to do. How remember the DOT COM Bubble? How will govt tell investors "THIS IS A BAD DEAL"? I understand the sentiment, but this one makes no practical sense...
Actually it makes perfect sense. Warren Buffet should chair the commission. He was famous for not investing in any dot com companies because he didn't understand what they did that could ever make a profit. He was correct. It just took some people 3-4 years to come to the same conclusion.
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Now stop being a asshole and try to debate.
You started your post with swearing and ended it with swearing. And you think others have a problem debating?
