Missing the Point: We are not trying to stop Bankers from failing

[OHdem10]

WE ARE ESTABLISHING A WAY FOR THE BIG BANKS TO FAIL IF
THEY CHOOSE TO BE TOO RISKY. They can fail but TaxPayers
will not bail them out. They are on their own. We have
a plan on how to handle the failure keeping it from
spreading to other banks.

We are separating Investment Banks from Commercial Banks
so Mainstreet will not be hurt if one bank fails. Taxpayer
Money will not be at risk as it was in the recent crisis.

Common Sense: Every Law is made to be broken. We cannot
develop a system so airtight that no bank will fail. Nor
do we want to. Totally stifle the system. You must
assume there will be some high flyers and risk takers who
will go over the limits. The objective is to have enough
regulations that reasonable people can operate, make money
take risks but not dangerous risks. At the same time you
have to assume some people will push the limits and go over.
Therefore, you develop a system which you can protect the
American People and the the banks who do not play fast and loose.

Every Media person starts with the supposition that this
Financial Reform Bill is to prevent Banks from failing.
This of course gives the Republican Pets the door to criticize.

Has no one listened to any of Geithner's comments.
Wrong.

[DJ13]

1. IF THEY CHOOSE TO BE TOO RISKY

See, thats where I draw the line with the admin.

Instead of preventing the risk from happening, they are choosing to provide a means of dealing with the fallout from risk.

Thats assbackwards.

[RaleighNCDUer]

2. No, they are choosing to provide a means of making the banks themselves

responsible for dealing the the fallout from risk, rather than the taxpayer. Just as it should be.

If the banks know that THEY will carry the risk, they will act in less risky ways.

Who is likely to be the responsible driver? The kid who worked all summer to make enough to buy a car, or the kid who was given a car by daddy and knows that daddy is good for another one if something happens to it?

You can't prevent risk. Risk is the very basis of capitalism. You can only manage risk, and reduce risk, and limit the danger from risk gone wrong.

[OHdem10]

3. This is exactly what I said, Thanks.

[Turbineguy]

4. When the foundation for the crisis

was being laid did the banksters know the Government would bail them out?

The 1999 law change unlocked the door. And like thieves they could not resist stealing as much as they could carry.

[OHdem10]

5. The 1999 law lifted all Regulations that had not already been lifted.

This clearly shows what NO Regulations can do.

[RaleighNCDUer]

8. IMO, they did. That's why they changed the law. They knew they'd

make a killing (before it all collapsed).

[DJ13]

6. You can't prevent risk.

No, but you can lessen the risk by reinstating the depression era rules that prevented this kind of meltdown instead of throwing up your hands and saying "boys will be boys"like the administration is doing.

[twilo73]

7. As much as you make sense the GOP will always find a way to twist it.

So sad....

[amborin]

9. until naked shorting by banks is banned, the charade continues