Financial Regulators Have the Juice, But Feel the Squeeze

We don’t care about cost being a prerequisite of doing business – we just cut!
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“…House Republicans’ newly proposed budget calls for $25 million in cuts to the SEC’s budget, and slashes the CFTC’s by a third”
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But again, don’t imply that the cuts will actually STICK.

This is a feature not a bug. We need the government to back off the private sector and let them do what they do best: engage in wild speculation backed by the implicit promise of bailouts, provide capital to corporations that are off-shoring U.S. jobs, commit securities fraud, and crash the economy provide capital to American companies and fuel the economic recovery.

Spot on, square.

“This is a feature not a bug.”
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At this rate even the political press won’t be able to hide who they’re working for and who they’re working against.

While folks may be focusing on the impact of the budget conversation on new regulations, many cycles are being burnt dealing with the impact of these positions on existing business operations.
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Try attracting top level talent for cyber security when you’re spiel includes…unscheduled furloughs, work stoppages, pay freezes, and general disdain of your work in the public sector.
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This is bigger than just stopping the implementation of HC, financial regulations, and the hope of rolling back Government to the time of our founding fathers.
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But then again, the Constitution doesn’t address 21st century technology.

By the time the Republicans get done with our country, we will be a third world nation with millions of people starving and standing in line at the soup kitchens. We don’t really have that far to go.

“Because Democrats and Republicans failed to reach an agreement on a FY 2011 budget, those regulatory agencies have continued to receive funding at 2010 levels, which were negotiated back when the financial reform law was little more than a sparkle in Chris Dodd’s eye.”
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Demos and Repubs failed to reach a budget agreement? When the FY2011 budget should have been passed the Demos controlled the House, Senate and WH. Failure to pass a budget is a failure of the Democrats.
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As far as funding for future funding levels, every department should make their case for why they need additional funding. As we have witnessed, the most regulated industry on earth suffered a crisis not from underfunding but because of political interference. All the money and all the regulators did nothing to forestall any crisis.
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And as far as Chris Dodd’s eye; maybe if he kept it on his job and his hands out of lobbyists we would all be better off.

“When the FY2011 budget should have been passed the Demos controlled the House, Senate and WH. Failure to pass a budget is a failure of the Democrats.”
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You mean they should have “crammed it down the Republicans’ throats in a partisan vote”. That’s how your propagandists would be spinning now, right? Of course, that ignores the fact the it would have been obstructed by traitorous Senate “conservatives,” like almost all the rest of the nation’s business.

“Failure to pass a budget is a failure of the Democrats”
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Republiclowns threatened to filibuster every time their demands were not met. But they’re absolved from blame???
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Have it your way.

Wake up, freeinpa,

The reason there was no budget is because the Republicans could filibuster any budget in the Senate. That is like saying why can’t the Republicans in Wisconsin can’t quite kill collective bargaining.

Are you claiming the financial industry in the United States is the most regulated industry on earth? What have you been smoking? We have weakened reguations of the financial industry for the past 30 years and the financial crisis is/was the result!

You and your conservative friends really need to study history. For some reason Conservatives seem to think regulations are created in a vacuum. No, in reality, reguations are usually created to solve a problem, often created by a crisis.

Most of our banking regulations came about in the 1930s in response to the Great Depression. Those regulations served us well for 50 years. After all that time, institutional memory fades and people begin to wonder why we had the regulations in the first place.

Starting with Ronald Reagan, and continuing unabated by Bush I, Clinton, and Bush II, we have allowed banks to create financial instruments which no one understands, even those who created them. We have encouraged banks to make bad loans, bundle them up and sell them.

Of course, Conservatives blame Fanny Mae and Freddie Mac, and the ending of redlining, claiming that forced banks to make bad loans to poor people. The problem with that argument is that such laws have been in the books for 30 years and last dealt with more than a decade before the crisis. If these were trully the cause, then the bubble would have happened during the Clinton years.

As far as political interference, you need to look no further than the Bush administration, which did nothing to stem the crisis.

What’s the reason there are problems with regulation of the financial system? No need to mince words Our system has been totally corrupted. The foxes are guarding the hen house and it’s both parties that are bought and paid for.

Read Taibbi for an explanation.

“You mean they should have “crammed it down the Republicans’ throats in a partisan vote”
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They didn’t seem to have a problem doing that with Obamacare And what the Demos realize but won’t admit is that ObamaCare and their plan for thebudget was met with revulsion by voters.
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“the Republicans could filibuster any budget in the Senate. That is like saying why can’t the Republicans in Wisconsin can’t quite kill collective bargaining.”
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The operative word is “could” they didn’t. The Demos ran out of town before the elections and now with a debt ceiling deadline are on vacation. Comparing that to WI is ludicrous. This time the cowardly left “cut & run” doing their best Bin Laden imitation by hiding in another state in caves only known to other cowardly Democrats.
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“been in the books for 30 years and last dealt with more than a decade before the crisis. If these were trully the cause, then the bubble would have happened during the Clinton years.”
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Any crisis is not instantaneous. Low interst rate policies by the Fed kept rates artificially low which pushed up asset values. People in turn used their homes as ATMs withdrawing cash, erasing equity and building up loan balances with teaser rates. The Clinton recession and 9/11 crushed the economy which resulted in businesses moving offshore, layoffs and people without the ability to borrow more to maintain their leveraged lifestyle.
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“Republiclowns threatened to filibuster every time their demands were not me”
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The key word here is threatened and the cowardly Democrats “cut & run”.

That is their way. No wonder the depots of Libya, N Korea, and Iran laugh at the leadership in this country today.

And the answer from the left continues to be more regulation by a corrupt system– brilliant!

freepinpa: Brilliant comeback!

As is yours. Other than whining about Republicans the only answer for everything is spend more money make more regulations without even a passing nod that is what the problem is!

Who “cut and run”? The Tan Man set a work schedule for the House in which they are away from the Capital after each third week of work.
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I wish I could get a job like that… $174,000/yr and work for three weeks then have a week off. And you idiots are complaining about what teachers make!!!

But the problem isn’t the regulations themselves. The problem is the recent (past 30 years) of deregulation coupled with a system that has allowed what few regulations to remain in place to be corrupted. But maybe if we paid regulators a decent wage and actually showed them that they are valued members of our society they’d not be corruptable.
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Hmmm, we could say the same about nearly any government worker. Pay them a decent wage, show them respect and just maybe our schools will be filled with teachers who know how to teach, our police departments filled with cops who will follow the law…etc., etc.

“But the problem isn’t the regulations themselves. The problem is the recent (past 30 years) of deregulation”
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That is out and out crap. The banking and financial indurty is the most regulated industry in the world. In the US yuou have the Federal Reserve, FDIC, Office of Comptroller of the Currency, State banking regulators, SEC and various committee of Congress. All charged with risk monitoring of the financial system
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So again your answer is spend more money and have more regulation into entities that have already failed.
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“just maybe our schools will be filled with teachers who know how to teach,”
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More money- no surprise, the only problem isshort of murder you can’t get the lousy teachers out. We spend more than any other country on education and are in the mid-20s for math and science proficiency. So clearly more and competence are not related but more money and unions are!

We are again experiencing a “Gilded Age” of monopolies, robber barons, greed, corruption, use of cheap labor to support an oligarchy.
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The protests in the Middle Easts are certainly a fight for freedoms. But, it is also a reaction to the income inequality between the irrationally wealthy and the poor.
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Before Republicans complete their efforts to end the middle class, they might take the protests into account.

“The banking and financial indurty is the most regulated industry in the world. In the US yuou have the Federal Reserve, FDIC, Office of Comptroller of the Currency, State banking regulators, SEC and various committee of Congress. All charged with risk monitoring of the financial system.”
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Stop saying that. It’s like saying that the US has the “highest corporate tax rate,” when you know goddamned-well that nobody pays it. The paper-trading that caused the financial crisis after the housing bubble was almost completely unregulated and even if the regulations had been there, there would probably have been no enforcement action because the regulators had been captured by the (supposedly) regulated. And since I figure you know all this, your constant repetition of the ridiculous notion that “banking and financial indurty is the most regulated industry in the world,” is also tantamount to a lie.

http://www.cnbc.com/id/41645307/
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Sometimes I just have to believe in karma.
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Homeowner Forecloses on Wells Fargo

A Philadelphia homeowner named Patrick Rodgers, who mortgage banks with Wells Fargo, was told by Wells that he needed to take out a $1 million homeowner’s policy on his house. Rodgers bristled at the demand: Because the market value of his house was far below a million bucks—he’d purchased it for $180,000 in 2002—and because the insurance policy cost $2,400. (Wells wanted the house insured for its replacement value—and the 100 year old Victorian would cost a fortune to recreate; hence, the difference in valuation.)

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And there begins the story…..

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