I don't know about you, but I don't have time to read a 1,408 page bill about regulating Wall Street and would be hard pressed to understand the gobbledygook written in it anyway, so I went to The Heritage Foundation to find out some information on it. If you read my post from yesterday, you'll see there are other unrelated policies hidden away in this bill that will become law right along with it if it actually passes, but this post is strictly about Senator Chris Dodd's regulation plan.
Heritage found 14 Fatal Flaws with the bill. I've listed them here, but you can read the explanation of each item at the link provided at the end of the list. This information has validated my belief that we cannot trust the Democrats in Congress.
Senator Dodd’s Regulation Plan: 14 Fatal FlawsPublished on April 22, 2010 by James Gattuso
The Senate is expected to take up a proposal, originally authored by Senator Chris Dodd (D–CT), to reform the financial regulatory system in the U.S. The goal is clear: to minimize the chances that another financial crisis—and bailouts—will arise again.
The objective is a good one. Unfortunately, the 1,408-page bill includes numerous provisions that would hurt—not help—consumers and the economy. It would even make another financial crisis or bailout more likely to occur.
Among other things, the bill:
- Creates a protected class of “too big to fail” firms.
- Provides for seizure of private property without meaningful judicial review.
- Creates permanent bailout authority.
- Establishes a $50 billion fund to pay for bailouts.
- Opens a “line of credit” to the Treasury for additional government funding.
- Authorizes regulators to guarantee the debt of solvent banks.
- Limits financial choices of American consumers.
- Undermines safety and soundness regulation.
- Enriches trial lawyers by authorizing consumer regulators to ban arbitration agreements.
- Subjects firms to hundreds of varying state and local rules.
- Subjects non-financial firms to financial regulation.
- Imposes one-size-fits-all reform in derivative markets.
- Allows activist groups to use the corporate governance process for issues unrelated to the corporation or its shareholders.
- Does nothing to address problems at Fannie Mae and Freddie Mac.
Read the specifics on each fatal flaw at Heritage.org.
Read about the "unrelated" items included in the Wall Street Bill at:
The Conservative Lady: UPDATE: Congress Is At It Again