Reporting from Washington - The influential chairman of the Senate Banking Committee, often criticized for being too cozy with Wall Street, unveiled a sweeping new plan Tuesday to toughen oversight of the financial industry -- proposing changes even more dramatic than the Obama administration's at the risk of delaying passage of new rules this year. The plan by Sen. Christopher J. Dodd (D-Conn.) would shatter the existing regulatory structure, installing a new federal banking authority to take the place of four agencies, a bold step the Obama administration declined to take. "The financial crisis exposed a financial regulatory structure that was the product of historic accidents, one after another, over the past 80 years," Dodd said. "For decades, Washington has failed to deliver . . . substantial reform we need. If we fail again at this hour, our economy will be vulnerable to yet another crisis." But Dodd's decision to offer a plan significantly different than legislation moving through the House further complicates White House efforts to pass an overhaul by year's end, efforts already hampered by Republican opposition. It also promises to ratchet up the intense lobbying on Capitol Hill over the most far-reaching changes to financial rules since the Great Depression. Industry lobbyists have amassed a $200-million war chest to try to derail measures that threaten banking profits. Critics say Dodd's zeal to rein in Wall Street stands in stark contrast to a career spent as an ally of the financial industry, suggesting that his pro-consumer stance may stem from a difficult reelection fight looming next year.
The plan by Sen. Christopher J. Dodd (D-Conn.) would shatter the existing regulatory structure, installing a new federal banking authority to take the place of four agencies, a bold step the Obama administration declined to take.
"The financial crisis exposed a financial regulatory structure that was the product of historic accidents, one after another, over the past 80 years," Dodd said. "For decades, Washington has failed to deliver . . . substantial reform we need. If we fail again at this hour, our economy will be vulnerable to yet another crisis."
But Dodd's decision to offer a plan significantly different than legislation moving through the House further complicates White House efforts to pass an overhaul by year's end, efforts already hampered by Republican opposition. It also promises to ratchet up the intense lobbying on Capitol Hill over the most far-reaching changes to financial rules since the Great Depression. Industry lobbyists have amassed a $200-million war chest to try to derail measures that threaten banking profits.
Critics say Dodd's zeal to rein in Wall Street stands in stark contrast to a career spent as an ally of the financial industry, suggesting that his pro-consumer stance may stem from a difficult reelection fight looming next year.
Let's not forget either the source of this bold unification ideology or allies in the pews.
Sen. Schumer is quoted, "He [Paulson] is on the money when he calls for a more unified regulatory structure, although we would prefer a single regulator to the three he proposes." But Mr Paulson is quoted, "I am not suggesting that more regulation is the answer, or even that more effective regulation can prevent the periods of financial market stress that seem to occur every five to 10 years." ... The fact that business classifications have multiplied exponentially during the the past 40 years should indicate the necessity of specialization in enforcement. But here we are, contemplating reinforcement of executive unitary theory as if three totalizing, central authorities appointed by a president could, actually, provide requisite regulatory relief to the market consumers whose purchasing "power" constitutes the GNP.
The fact that business classifications have multiplied exponentially during the the past 40 years should indicate the necessity of specialization in enforcement. But here we are, contemplating reinforcement of executive unitary theory as if three totalizing, central authorities appointed by a president could, actually, provide requisite regulatory relief to the market consumers whose purchasing "power" constitutes the GNP.
Othewise it's tempting to fall for the um lone revolting pimp plot. Diversity is the key to economic and political evolution.
First I gotta watch La Commune though. It's three disks and the borrowing period is seven days. I'm pretty sure I'll fall asleep during the screening of each DVD at least twice, and no way is the Militant Electrician going to turn over time after school but before my bedtime. I'm pre-senior, you know.
Keep me informed. Diversity is the key to economic and political evolution.
