Comments on: Financial Regulation Reform: Give Us Your Talking Points http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/ Firedoglake weblog Sat, 18 Feb 2012 00:38:37 -0600 hourly 1 http://wordpress.org/?v=3.1.2 By: masaccio http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945332 masaccio Wed, 29 Jul 2009 14:08:22 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945332 <p>Thanks to everyone for the ideas. I’ll take a long look at this.</p> Thanks to everyone for the ideas. I’ll take a long look at this.

]]> By: cougar http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945223 cougar Wed, 29 Jul 2009 08:30:28 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945223 <p>Dismantle Federal Reserve.</p> <p><a href="http://www.thenation.com/doc/20090803/greider" rel="nofollow">http://www.thenation.com/doc/20090803/greider</a></p> Dismantle Federal Reserve.

http://www.thenation.com/doc/20090803/greider

]]> By: Hugh http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945099 Hugh Wed, 29 Jul 2009 05:39:50 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1945099 <p>Yes, as others have said, treat commercial banking as a utility. Keep it simple and vanilla.</p> Yes, as others have said, treat commercial banking as a utility. Keep it simple and vanilla.

]]> By: MarkH http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944957 MarkH Wed, 29 Jul 2009 02:08:01 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944957 <p>Ban or severely limit adjustable rate mortgages (ARMs)!</p> Ban or severely limit adjustable rate mortgages (ARMs)!

]]> By: MarkH http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944955 MarkH Wed, 29 Jul 2009 02:04:11 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944955 <p>Quite a list:</p> <p>Ban non-market-traded derivatives<br /> Ban Credit Default Swaps (at least naked ones)<br /> Ban Collateralized Debt Obligations<br /> Simplify stock ownership to only ONE level.<br /> Separate commercial & investment banking & insurance, etc.<br /> Restore uptick rule for short-sales of stock<br /> Transaction tax on securities trades to end churning<br /> Ban “too big to fail” firms<br /> Limit financial innovations<br /> Consumer (including investor and mortgage holder) protection<br /> Ban management from boards of directors<br /> Ban management from trading stock with stock awards held in escrow<br /> Full FASB mark-to-market accounting<br /> Ban commodity traders who can’t take delivery of product<br /> Ban naked futures bets<br /> Create independent auditors<br /> Create independent asset ratings agencies<br /> Stop impeding state financial regulators<br /> Transaction fee(s) based on risk of asset(s)<br /> Gov’t audited transaction IT system for traders<br /> Regulations establishing risk evaluation before new investment vehicles allowed<br /> Anti-trust reform, perhaps banning holding companies<br /> Surtax on executive salaries which are a high multiple of the minimum wage<br /> Ban Enron-like off-the-books financial entities (where debts are hidden)</p> <p>Whew!</p> <p>No mention of re-regulating mortgage lending?<br /> How about banning splitting up mortgages in CDOs?</p> <p>Perhaps no investor in a ratings agency should be allowed to hold stock in other companies — thereby limiting conflicts of interest.</p> <p>=============</p> <p>All kinds of ‘destructive capitalism’ need to be destroyed! People should invest to build, not to just destroy the competitors.</p> Quite a list:

Ban non-market-traded derivatives
Ban Credit Default Swaps (at least naked ones)
Ban Collateralized Debt Obligations
Simplify stock ownership to only ONE level.
Separate commercial & investment banking & insurance, etc.
Restore uptick rule for short-sales of stock
Transaction tax on securities trades to end churning
Ban “too big to fail” firms
Limit financial innovations
Consumer (including investor and mortgage holder) protection
Ban management from boards of directors
Ban management from trading stock with stock awards held in escrow
Full FASB mark-to-market accounting
Ban commodity traders who can’t take delivery of product
Ban naked futures bets
Create independent auditors
Create independent asset ratings agencies
Stop impeding state financial regulators
Transaction fee(s) based on risk of asset(s)
Gov’t audited transaction IT system for traders
Regulations establishing risk evaluation before new investment vehicles allowed
Anti-trust reform, perhaps banning holding companies
Surtax on executive salaries which are a high multiple of the minimum wage
Ban Enron-like off-the-books financial entities (where debts are hidden)

Whew!

No mention of re-regulating mortgage lending?
How about banning splitting up mortgages in CDOs?

Perhaps no investor in a ratings agency should be allowed to hold stock in other companies — thereby limiting conflicts of interest.

=============

All kinds of ‘destructive capitalism’ need to be destroyed! People should invest to build, not to just destroy the competitors.

]]> By: damagedone http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944951 damagedone Wed, 29 Jul 2009 01:53:30 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944951 <p>Like the idea of brainstorming. I probably do not like the idea of a security transaction tax. Maybe I do not know enough but the trading seems unfair on its face to me. To make it fair then most everyone should be allowed to trade similarly. This could result in an arms race and sometimes the rocket blows up on the launch pad. Also the security transaction tax makes the government a partner looking to get its share sort of like sin taxes - a conflict of interest. I would prefer a wealth tax to get at the people gaming the system so they pay a fair share and to keep them honest.</p> Like the idea of brainstorming. I probably do not like the idea of a security transaction tax. Maybe I do not know enough but the trading seems unfair on its face to me. To make it fair then most everyone should be allowed to trade similarly. This could result in an arms race and sometimes the rocket blows up on the launch pad. Also the security transaction tax makes the government a partner looking to get its share sort of like sin taxes – a conflict of interest. I would prefer a wealth tax to get at the people gaming the system so they pay a fair share and to keep them honest.

]]> By: goldstandard http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944947 goldstandard Wed, 29 Jul 2009 01:46:35 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944947 <p>1. Make it the law of the land, that if the Federal Reserve has the power to funnel US taxpayer funds to any bank foreign or domestic, then these transactions must be completely transparent.</p> <p>2. If the Federal Reserve is to continue to exist in its present form, it shall be mandatory for the banks that make up the composition of this private banking cartel to have its books audited once a year by an independent auditor.</p> <p>3. If we are to believe that we have a free market system, stop the naked short selling not only in commodities like oil, but all commodities especially gold and silver. Many investors realize that the PPT uses paper gold and silver to surpress their price because these metals have historically given investors around the world a true barometer of inflation. it is mathematically impossible for the US to print trillions of make believe dollars, with the USDX down to 78.58 and not have gold and silver rising in their inverse proportion. Currently companies like JP Morgan as well as Goldman Sachs have trillions in paper hedges against these two metals. This is how they manipulate these markets in order to give the impression that the dollar is sound when the opposite is true.</p> 1. Make it the law of the land, that if the Federal Reserve has the power to funnel US taxpayer funds to any bank foreign or domestic, then these transactions must be completely transparent.

2. If the Federal Reserve is to continue to exist in its present form, it shall be mandatory for the banks that make up the composition of this private banking cartel to have its books audited once a year by an independent auditor.

3. If we are to believe that we have a free market system, stop the naked short selling not only in commodities like oil, but all commodities especially gold and silver. Many investors realize that the PPT uses paper gold and silver to surpress their price because these metals have historically given investors around the world a true barometer of inflation. it is mathematically impossible for the US to print trillions of make believe dollars, with the USDX down to 78.58 and not have gold and silver rising in their inverse proportion. Currently companies like JP Morgan as well as Goldman Sachs have trillions in paper hedges against these two metals. This is how they manipulate these markets in order to give the impression that the dollar is sound when the opposite is true.

]]> By: jonerik http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944941 jonerik Wed, 29 Jul 2009 01:31:03 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944941 <p>I like the ones posted above but I’ll add my own. Prohibit joint ventures meaning any type of alliance or association between production, processing like refining, transportation and distribution. This means extending “commodities clause” type prohibitions in the interstate commerce act to petroleum, natural gas, electricity, coal and other forms of energy commodities. No so-called “vertical integration”. A company like Exxon e.g. should not own any pipelines nor should it own directly or indirectly any gas stations or refineries if it is engaged in oil and natural gas production.</p> I like the ones posted above but I’ll add my own. Prohibit joint ventures meaning any type of alliance or association between production, processing like refining, transportation and distribution. This means extending “commodities clause” type prohibitions in the interstate commerce act to petroleum, natural gas, electricity, coal and other forms of energy commodities. No so-called “vertical integration”. A company like Exxon e.g. should not own any pipelines nor should it own directly or indirectly any gas stations or refineries if it is engaged in oil and natural gas production.

]]> By: MichaelHarold http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944935 MichaelHarold Wed, 29 Jul 2009 01:12:53 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944935 <p>1. Credit Default Swaps are fake insurance. They have few (and sometimes no) regulation or capital requirements. CDS contracts must be subjected to the same regulations and requirements, including reserve requirements, as other forms of insurance.</p> <p>2. Securitization carries risks that must not be hidden from the buyers. Seller-related “cheats and lies” such as Special Purpose Vehicles and credit derivatives that create the type of fake AAA credit ratings that helped cause the current economic crisis must not be allowed.</p> <p>3. All derivatives trades, including over the counter trades, must be made fully transparent so that insider traders cannot game the market. Transparency would allow other market participants to reduce systemic risk by anticipating and countering derivatives activities intended to manipulate the markets.</p> 1. Credit Default Swaps are fake insurance. They have few (and sometimes no) regulation or capital requirements. CDS contracts must be subjected to the same regulations and requirements, including reserve requirements, as other forms of insurance.

2. Securitization carries risks that must not be hidden from the buyers. Seller-related “cheats and lies” such as Special Purpose Vehicles and credit derivatives that create the type of fake AAA credit ratings that helped cause the current economic crisis must not be allowed.

3. All derivatives trades, including over the counter trades, must be made fully transparent so that insider traders cannot game the market. Transparency would allow other market participants to reduce systemic risk by anticipating and countering derivatives activities intended to manipulate the markets.

]]> By: Gitcheegumee http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944933 Gitcheegumee Wed, 29 Jul 2009 00:57:00 +0000 http://firedoglake.com/2009/07/28/financial-regulation-reform-give-us-your-talking-points/#comment-1944933 <p>Seems Maxine Waters had a good suggestion: </p> <p>Waters Introduces Bill That Would Ban All Credit-Default Swaps </p> <p>By Dawn Kopecki and Alan Bjerga</p> <p>July 10 (Bloomberg) — Representative Maxine Waters introduced legislation to ban all credit-default swaps, the financial instruments blamed in helping to take down American International Group Inc. </p> <p>“Credit-default swaps are one of many contributing factors to the current economic crisis,” Waters, a California Democrat, said in a statement released at a hearing today on the Obama administration’s plan to rein in the $592 trillion industry. “Preventing all credit-default swaps is essential to bringing stability to the market and preventing a similar crisis in the future.” </p> <p>Treasury Secretary Timothy Geithner is testifying before a joint hearing of the House Financial Services and Agriculture committees. The administration’s plan doesn’t call for an outright ban on credit default swaps. </p> <p>To contact the reporter on this story: Dawn Kopecki in Washington at <a href="mailto:dkopecki@bloomberg.net." rel="nofollow">dkopecki@bloomberg.net.</a></p> Seems Maxine Waters had a good suggestion:

Waters Introduces Bill That Would Ban All Credit-Default Swaps

By Dawn Kopecki and Alan Bjerga

July 10 (Bloomberg) — Representative Maxine Waters introduced legislation to ban all credit-default swaps, the financial instruments blamed in helping to take down American International Group Inc.

“Credit-default swaps are one of many contributing factors to the current economic crisis,” Waters, a California Democrat, said in a statement released at a hearing today on the Obama administration’s plan to rein in the $592 trillion industry. “Preventing all credit-default swaps is essential to bringing stability to the market and preventing a similar crisis in the future.”

Treasury Secretary Timothy Geithner is testifying before a joint hearing of the House Financial Services and Agriculture committees. The administration’s plan doesn’t call for an outright ban on credit default swaps.

To contact the reporter on this story: Dawn Kopecki in Washington at dkopecki@bloomberg.net.

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