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Old 07-25-2010, 02:54 PM
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retmil46 retmil46 is offline
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Join Date: Jun 2006
Location: Mooresville, NC
Posts: 344
What of the new financial regulation bill?

Other than Moody and S&P now being held liable for their ratings, such that they've issued the disclaimer telling everyone from now on to disregard their ratings, here's what has been related to me second hand (working 10 hr days 6 days/wk makes it hard to keep up on news) -

The bill essentially does nothing to regulate derivatives trading, which played a sizeable part in getting us into the current mess, until 2022. So players like Goldman Sachs are free to go on as before trading "toxic assets".

The Fed has been granted increased powers to take over financial institutions they deem to be at risk of failing and/or "a risk to the stability of the financial system". From what I've seen of the Fed over the years, this sounds like a situation ripe with the potential for abuse and outright robbery - you either kiss a$$ and play ball with the Fed, or one day they might connive a situation to declare your institution "insolvent" and seize it's assets for their purposes, no matter how healthy your institution actually is.
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