Opinion: Can a Government Lifeline Alone End the Crisis? | Business | Deutsche Welle | 19.09.2008
Greater regulation needed So the state emerges as the savior. Initial news of the bailout led to a swift recovery. First, profits were privatized and now, losses are being socialized. With the banks saved, the whole game can start over again. That is, unless the government makes stricter regulations for the financial sector part of its rescue program. The sector is always willing to be bailed out, but most unwilling to have regulations imposed on its business dealings. But without stricter monitoring and regulation, such a bailout will only plant the seeds for the next bubble on the financial markets to grow. Karl Zawadzky is DW-RADIO's business editor (dc)
So the state emerges as the savior. Initial news of the bailout led to a swift recovery. First, profits were privatized and now, losses are being socialized. With the banks saved, the whole game can start over again. That is, unless the government makes stricter regulations for the financial sector part of its rescue program.
The sector is always willing to be bailed out, but most unwilling to have regulations imposed on its business dealings. But without stricter monitoring and regulation, such a bailout will only plant the seeds for the next bubble on the financial markets to grow.
Karl Zawadzky is DW-RADIO's business editor (dc)
Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Lobbyists Scramble to Sway Deal Titans of the financial industry are battling to influence the government's financial rescue plan, a package that will create new winners and losers in the sector. Democrats in Congress want a rescue package that benefits homeowners at risk for foreclosure, not just Wall Street. Securities houses don't want executive salary limits for banks that participate in the rescue. (...) House Republican staffers met with roughly 15 lobbyists Friday afternoon, whose message to lawmakers was clear: Don't load the legislation up with provisions not directly related to the crisis, or regulatory measures the industry has long opposed. "We're opposed to adding provisions that will affect [or] undermine the deal substantively," said Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable, whose members include the nation's largest banks, securities firms and insurers. A deal killer for the group: a proposal that would grant bankruptcy judges new powers to lower the principal, interest rate or both on a mortgage as part of a bankruptcy proceeding.
Titans of the financial industry are battling to influence the government's financial rescue plan, a package that will create new winners and losers in the sector.
Democrats in Congress want a rescue package that benefits homeowners at risk for foreclosure, not just Wall Street. Securities houses don't want executive salary limits for banks that participate in the rescue.
(...)
House Republican staffers met with roughly 15 lobbyists Friday afternoon, whose message to lawmakers was clear: Don't load the legislation up with provisions not directly related to the crisis, or regulatory measures the industry has long opposed.
"We're opposed to adding provisions that will affect [or] undermine the deal substantively," said Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable, whose members include the nation's largest banks, securities firms and insurers.
A deal killer for the group: a proposal that would grant bankruptcy judges new powers to lower the principal, interest rate or both on a mortgage as part of a bankruptcy proceeding.
Give us the money and don't tell us what to do with it. Or else. In the long run, we're all dead. John Maynard Keynes
Example: Lehman had
liabilities of $613 billion and assets worth $639 billion. But nobody trusted the quality of those assets.
Anyone 'serious', I mean.
