WH caves once again=this time on financial reform!!

[joeycola]

http://www.nytimes.com/2009/09/24/business/24regulate.html?_r=1&hp=&adxnnl=1&adxnnlx=1253729320-qxcQ62axc79HfuEK/ImyGQ

September 24, 2009
White House Pares Its Financial Reform Plan
By STEPHEN LABATON


WASHINGTON — As a senior House Democrat announced an ambitious schedule to complete legislation overhauling the nation’s financial system, the Obama administration on Wednesday abandoned a symbolically significant provision in the face of widespread political and industry opposition.

At a hearing before the House Financial Services Committee, Treasury Secretary Timothy F. Geithner announced that the administration had dropped one provision in its plan for a consumer financial protection agency — a requirement for banks and other financial services companies to offer “plain vanilla” products, like 30-year fixed mortgages and low-interest, low-fee credit cards.

Mr. Geithner’s decision followed a wave of criticism by Democrats and Republicans, some with close ties to the industry, that the plan was the first step toward a new regulatory regime in which the administration would be handing new powers to government bureaucrats approving and disapproving a wide array of financial products. Republicans in particular had embraced that line of attack and said it is similar to the flaws in the administration’s health care program of giving government too much power.

Among those who had said the provision stood no chance of passage was the committee chairman, Representative Barney Frank, a Massachusetts Democrat, who announced on Tuesday evening that it would not be part of the legislation.

“There has been a lot of concern that if you invest the government with the ability to decide what’s appropriate here and there, that will lead to less competition and choice,” Mr. Geithner said. “The chairman’s proposals, which I’ve had a chance to quickly read, provides a better balance of choice and protection.”

[Romulox]

1. Obama is still not sure that CEOs of bailed out banks should have any compensation limits!

:wtf:

[Better Believe It]

3. It's pretty obvious who's calling the shots in the White House.

And the stage is now being set for a double dip recession, a possible depression and Republican control of Congress and the White House in 2012.

[BrklynLiberal]

2. damn!

[ProSense]

4. "one provision" is caving? He caved to who: Barney Frank and other Democrats?

Your title is spin. The White House is compromising to accommodate a lot of concerns even from some liberal Democrats.

[joeycola]

7. caving is caving.

[polichick]

5. "in the face of widespread political and industry opposition."

What about the WIDESPREAD DISGUST OF TAXPAYERS??

[joeycola]

8. Caving is in at the WH.

[high density]

13. Who was demanding this provision?

Most people living in a town of 5,000 or more can probably walk to a half dozen banks where they can get a 30 year fixed mortgage and a zero-fee credit card.

It's time to stop being outraged for the sake of being outraged.

[polichick]

14. You missed the point - which is, they should answer to taxpayers...

...not to political and industry opposition.

[high density]

17. What taxpayers were demanding this?

Any taxpayer in this country with decent credit can call up a bank and get a 30 year mortgage or a cheap credit card. We do not need legislation demanding this.

There is absolutely no reason to fight an industry and political battle on this issue. It seems like an item precisely engineered so it could be dropped as an example of the WH reaching out to the other side.

[4lbs]

6. So how is the Obama Administration caving when House Democrats are the ones stripping it from the

leglislation because they don't think it will pass with the item(s) in there?

[joeycola]

9. Does the WH have no clout? or does it just not care about us folks anymore. !!

[Loge23]

10. Reinstatement of Glass-Steagall is critical.

This is the financial industry equivalent of a robust public option to health care reform.
Unfortunately, we'll probably get neither.

I know it's still relatively early, but just what platform does Obama plan on running on in 2012??

[PretzelWarrior]

11. waaaahhhh! I don't even know much about financial regulation but I'm posting negative shit!

whaaaaaa!!! grow up, dude. We get it. Barack Obama didn't personally come to your house and provide turn down service so now everything he and his group do aren't enough for you.

With "friends" like you...

[high density]

12. So they 'caved' on a worthless provision... whoopty-do.

People can already get 30-year fixed mortgages and low fee credit cards. If people choose to get something different then that is their fault, not Obama's. If the White House can drop worthless stuff like this and get real financial regulation reform then that's fine by me. I could see the outrage if these services didn't exist already, but they are already there and people have easy access to them.

The NY Times calls it "symbolically significant." That's bordering on an oxymoron when it comes to legislation.

[DrToast]

15. Reality: Worthless provision dropped from financial reform

[uponit7771]

16. **** THE PROVISION WASN'T EFFECTIVE*****

[scheming daemons]

18. Alternate headline for this OP: "Obama Administration drops meaningless provision"

The OP's spin sucks.