Michael Hiltzik described the battle to block or change the Dodd-Frank law which attempts to prevent another bank meltdown (too big to fail) and need for resulting governmental bail out.
Conservative hostility to Dodd-Frank continues unabated - LA Times:
The reason we had the financial melt-down in 2007 was because the financial industry and their many well taken care of politicians in congress and senate refused to put the type of mortgage-backed securities under some sort of regulation. The Dodd Frank bill was an attempt to close some of the many loopholes in banking regulation. It passed mostly along party lines, and now the Republicans would like to gut the law any way they can. I'm not sure the bill does everything that is needed. Also, I'm sure that the industry will come up with some new, creative way of sidestepping the law and will create some new "bubble." However this is the best we have now--and sadly, the Republicans have not come up with anything better.
As an investor, I want confidence that the investments I make are property represented and the executives involved are ethical. I think most investors are still on the sidelines because of the fear that another meltdown might occur. Passing some tighter rules for financial controls and disclosure seems to be a very minimal step toward improving the confidence of the investing public.
Conservative hostility to Dodd-Frank continues unabated - LA Times:
The reason we had the financial melt-down in 2007 was because the financial industry and their many well taken care of politicians in congress and senate refused to put the type of mortgage-backed securities under some sort of regulation. The Dodd Frank bill was an attempt to close some of the many loopholes in banking regulation. It passed mostly along party lines, and now the Republicans would like to gut the law any way they can. I'm not sure the bill does everything that is needed. Also, I'm sure that the industry will come up with some new, creative way of sidestepping the law and will create some new "bubble." However this is the best we have now--and sadly, the Republicans have not come up with anything better.
As an investor, I want confidence that the investments I make are property represented and the executives involved are ethical. I think most investors are still on the sidelines because of the fear that another meltdown might occur. Passing some tighter rules for financial controls and disclosure seems to be a very minimal step toward improving the confidence of the investing public.
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