New Banker Rules: Change You Can Believe In?

[MannyGoldstein]

Obama/Emanuel are now saying they'll reign in the bankers with new rules "in the spirit of Glass-Steagall" (although not Glass-Steagall).

Are you optimistic?

[yourout]

1. Before one cent was passed out Glass-Steagall should have been brought back.

But in what seems to be Dem tradition we fold the hand while holding 4 aces.

Our Dem leaders would make lousy poker players.
Unwilling to call a bluff and unwilling to really play a hand.

[MannyGoldstein]

4. +1000 nt

[JTFrog]

12. You're gonna have to blame Bush for the cents being passed out.

That was all setup before Obama took office.

It's not like it all matters anymore anyway since the Supreme Court has just royally fucked us. Again.

[karynnj]

15. I understand your reason, but the danger was too great

If you read accounts, like the book "Too Big To Fail", it is clear that the financial industry was itself stunned by the depth of their problems and most of the biggest banks, here and elsewhere were in grave danger of failing - many having only a few days cash flow and piles of toxic assets. From the book, keeping in mind that writer is a Wall Street/financial reporter, it seemed that Treasury and the financial industry was very slow to inform Congress of the true depth of the problem until it was a crisis. The book showed Treasury/Bernanke/Geitner all making decisions then pulling Congress in at the last minute when the sky was essentially falling. Their stated goal in the meeting was to scare the hell out of Congress. (the author here buys into the industry's and treasury's condescension towards Congress.) In addition, the first payouts were done by the Treasury on its own, including AIG, which accounts for big sums of unpaid money. That money ultimately went to all the banks for which AIG "insured" risky, now toxic assets.

It is not clear that there was time to write a new Glass-Stegall and pass it before agreeing to TARP. (I assume that all the "innovations" that happened after Glass-Stegal would need to be dealt with in this bill.) At that point, I am not sure it was even understood that that was one of the roots of the problem. Not to mention the very opposite was happening, Geitner orchestrated shotgun weddings for many of the failing investment companies and banks, like Bank of America that didn't have a huge investment banking side. (In the book, this was "saving" these companies partly by making them too big to fail.) In addition, they created a way that standalone investment companies (ie Goldman Sacks) could become investment banks which gave them access to the Fed's discount window. Most of them happened in 2 weekends right before the "crisis" that brought Obama and McCain back to DC for the well known meeting.) It is interesting that in his current position, he will be the one working with the "divorces".

Now the banking committee actually passed a massive banking bill that included an attempt to deal with foreclosures and the toxic assets, which is not mentioned in the book even though it happened in the time frame covered. But, I don't think that bill dealt with the desperately needed oversight and I think that at that point, derivatives were things you computed in calculus. That committee, the SEC (Cox was completely hopeless), and the financial industry itself all failed to see the iceberg.

So, in a shorter story, it might not be poker skills here, but that things like legislation to reimposes Glass-Stegall might not have even been on their minds. They did want to impose more oversight and things like compensation limits (Dodd actually led on this).

[yourout]

21. Thanks for the information.......very interesting. Wonder were we go from here to....

put the Genie back in the bottle so to speak?

[centristgrandpa]

24. timing is everything...

There was a small window of opportunity, again it was missed. A third party will emerge from this mess. The Independent party will have their say, hopefully soon... The repubs are thugs aNd the demo's do not understand simple politic's, too bad...

[karynnj]

28. I assume you are speaking of a modern day "know nothings" aka the tea party movement?

It is very scary and as you say, too bad. The really hard to understand thing is why the media has really been so positive in their coverage of these angry people. I suspect their purpose is to harm Obama's chances of change, but are they prepared for the eventuality that these people could actually become a dominant party?

[centristgrandpa]

29. not really...

I was not referring to them tea baggers, they are not in the truest sense "Independents" but merely a Fake grown by repub nation...

[FreakinDJ]

2. It wasn't Emanuel - it was Volker

If you want to Bash Obama at least get the story straight

[MannyGoldstein]

5. Volker's Plan - But It's The Obama/Emanuel Administration That's Implementing nt

[FreakinDJ]

7. after the House and Senate get finished with it

which is where it will more then likely be water-down by Bipartisanship

Again would it be better to direct your angst where it is properly deserved

[woodsprite]

3. With all the stuff that's been happening lately, I'm beginning to think

it should be "Change what you believe in".

[yourout]

6. +1....great line.

[lib2DaBone]

8. Smoke and Mirrors..Kabuki....

Obama is only shaking down the bankers so the campaign donations keep coming.

Don't worry.. there won't be any legislation... he will cave and move on to something else.

[dionysus]

11. bitter and jaded much?

[babylonsister]

9. Jeebus. You have a gripe with this, too? You will never be happy

about anything Obama-related. Or would that be Dem-related? :eyes:

[dionysus]

13. poll translation; "does obama suck, or does he really suck"

[Spazito]

16. Excellent question!

Given the non-stop Obama bashing from day one, I, too, have the same question.

[MannyGoldstein]

20. That Would Be Far-Right Related

By historical standards, Obama's policies are far right.

I voted for change. We were lied to.

Obama's lambada with Republicans has to stop.

[MadBadger]

22. Remember when I said you said foolish things all the time?

Perfect example right here. Obama has moved from being a "centrist" or a "Corporatist" to being Far-Right.

[dionysus]

25. he'll be calling him a facist in short order.... just you watch...

[MannyGoldstein]

32. Move Along... Nothing to See Here...

http://www.nytimes.com/2010/01/22/us/22gitmo.html?scp=2&sq=guantanamo&st=cse">Detainees Will Still Be Held, but Not Tried, Official Says

[dionysus]

34. from the article;

"The Obama administration has decided to continue to imprison without trials nearly 50 detainees at the Guantánamo Bay military prison in Cuba because a high-level task force has concluded that they are too difficult to prosecute but too dangerous to release, an administration official said on Thursday.

However, the administration has decided that nearly 40 other detainees should be prosecuted for terrorism or related war crimes. And the remaining prisoners, about 110 men, should be repatriated or transferred to other countries for possible release"

so if we're holding on to some dangerous guys who are vowing to kill americans if they get out, you would just let them go, wouldn't you? or do you think they're holding these guys for the sheer fun of it?

[MannyGoldstein]

35. How Do You Know?

How do you know that the people being held without any legal recourse are "some dangerous guys who are vowing to kill americans if they get out"?

That's we (used to) have judicial process, to figure that out.

[dionysus]

23. if you think obama is "far right", you either don't have two brain cells to rub together,

or you're so bitter the garden gnome didn't win, that you've totally divorced yourself from reality.

:rofl:

[MannyGoldstein]

30. Well... One of Us Has Those Problems nt

[earthside]

10. 41

Until the Senate Democrats invoke the 'nuclear option' and kill the current filibuster rule, then everything Obama or any Democratic legislator proposes is just talk.

The Republicans have 41 firm votes now to stop -- not just delay like the original filibuster concept did -- to stop even votes on any legislation.

Banking reform? Forty-one Republican Senators will 'filibuster' and that will be the end of that.

[TankLV]

14. More "pretty talk" - so far he is ALL talk and no RESULTS!!!

Sorry if I don't hold my breath for this one, too...

[Tailormyst]

17. I really am still skeptical, I want to believe, but I just don't want to be let down again n/t.

I am glad our President is taking a forceful stand. I hope it continues. I hope it is sucessful. After this last week though, I have a hard time with optimism.

[Jennicut]

18. The end game is not if this passes right away but to get Wall St. into a fight with Obama

A very public fight. In the end, the public will be on the side of Obama on this one and Congress will have to decide between passing something popular or not right before an election. Obama needs to learn how to use leverage over these idiots in Congress.

[Tom Rinaldo]

19. Beat him up over something else if warrented

This is a shift worthy of encouraging now. No results are in but this is how it starts and I am happy to see this start while waiting to see where we go from here.

[andym]

26. If they can pass it.

It will help.

[last1standing]

27. There is no more trust there.

Since the day Obama refused to remove Warren from his spot at the inauguration, I've felt that this is a president not to be trusted. Today, that belief is shared by the majority (as seen in the MA senate vote). He has betrayed us time and again in favor of corporate interests to the point where even good news is met with suspicion.

I hope he has learned a lesson from all of this but his continued support of Bernanke tells me he hasn't. So now we just have to wait and see, with little trust or hope.

[Sebastian Doyle]

31. Why don't they just bring back Glass Steagall?

We KNOW that worked. Is this comparable to when they put high fructose corn poison in a can and called it "Coca Cola Classic"? (Said it was the Real Thing - but it wasn't.)

[TheKentuckian]

33. Its a start

[DailyGrind51]

36. Will he back off when the opposition puts the pressure on?

[Cali_Democrat]

37. You're obsessed with Rahm Emanuel.

At the end of the day this is Obama's administration, not Rahm Emanuel's.