Sunday, May 2, 2010

The 14 Fatal Flaws in the Wall Street Regulation Bill

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 Flaws
Published 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. 

Fourteen Flaws
Among other things, the bill:

  1. Creates a protected class of “too big to fail” firms. 
  2. Provides for seizure of private property without meaningful judicial review.
  3. Creates permanent bailout authority. 
  4. Establishes a $50 billion fund to pay for bailouts.  
  5. Opens a “line of credit” to the Treasury for additional government funding.
  6. Authorizes regulators to guarantee the debt of solvent banks. 
  7. Limits financial choices of American consumers.  
  8. Undermines safety and soundness regulation. 
  9. Enriches trial lawyers by authorizing consumer regulators to ban arbitration agreements. 
  10. Subjects firms to hundreds of varying state and local rules.
  11. Subjects non-financial firms to financial regulation.
  12. Imposes one-size-fits-all reform in derivative markets.
  13. Allows activist groups to use the corporate governance process for issues unrelated to the corporation or its shareholders.
  14. Does nothing to address problems at Fannie Mae and Freddie Mac.
Read the specifics on each fatal flaw at

Read about the "unrelated" items included in the Wall Street Bill at:
The Conservative Lady: UPDATE: Congress Is At It Again

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  1. Good 'Cliff Notes' version of a 1300+ page monstrosity.

    I think I can safely say that NO bill originating from the 111th Congress (this slimy one, which will take a bloody beating in November) is any good whatsoever, and any bill that is generated this year is designed by the Marxists in charge to screw up capitalism, and gouge taxpayers.

    I think they should ammend the Constitution to the effect that no legislation shall exceed in length one 8.5" x 11" page, double spaced, 14 point Times New Roman font, with 1 inch margins top, bottom and both sides. Also, no terms within this page shall exceed four syllables.

  2. So, this is a massive power grab, and does nothing to actually solve anything. Typical.

  3. Hi Fredd:
    I agree. I think the Republicans in Congress should vote NO on every single thing put out by the Democrats/Progressives. It's obvious where they are headed.
    I like the amendment to the Constitution you propose, ha, ha.

  4. Matt:
    The only thing it "solves" is the Democrat/Progressive movement toward their agenda.

  5. Kind of out here when reality is involved. Chris Dodd is going to his reward this fall. A rocking chair on his porch.
    If they actually tried to solve anything, the members would be fighting amongst themselves on a daily basis. It is only in screwing us that there is unity on the left.

  6. Petty Officer:
    You are absolutely correct. Their mission is turning our country into a third world nation, and they are on their way to doing just that.
    As for Chris Dodd...good riddance...but he'll try to do as much damage as he can and leave his mark.

  7. This is really good breakdown you have here. I'm just waiting for the Federal Bailout Department to be formed.

  8. This new bill gives the Washington Democraps what they want. I gives more control over private industry.

    Too big to fall ??? that's what Chapter 11 is for.

    Sorry I took so long to get here, but like everyone else I visit, you'll be sorry ...

  9. Trestin:
    I wouldn't be surprised. The bureaucracy keeps growing every day.

  10. Hi Odie:
    Welcome to TCL and thanks for the follow.
    Every bill the Democraps (good description) put out give them more power. I just wish the Republicans would say HELL NO to everything. RINOs (like Lindsey Graham) really tick me off.


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