New rules might not stop next financial crisis

[Go2Peace]

http://www.msnbc.msn.com/id/37303795/ns/business-stocks_and_economy

"Experts say the financial regulatory bill approved by the Senate last week, and a similar bill that passed the House, include loopholes and gaps that weaken their impact. Many provisions depend on the effectiveness of regulatory agencies — the same agencies that failed to foresee the last crisis.

A big reason for the bill's limitations is that banks and industry groups lobbied against rules they felt would reduce their profit-making ability.

The financial sector's influence in Washington reflects its enormous donations and lobbying. Over the past two decades, it's given $2.3 billion to federal candidates. It's outdone every other industry in lobbying since 1998, having spent $3.8 billion."

[OHdem10]

1. Read the Bill: It is written with the expectation that other crisises

will come.

Please note: They developed a plan to wind down a company in trouble
and hope they can let one company fail without having
a domino-type effect bringing them all down.

They are doing this instead of breaking up the banks and making
them smaller. Instead of separating Commercial Banks from Investment
banks. Many experts believes these two step are essential
if you seriously want to stop or prevent future crisis.

The Banksters are happy and do not let their public posturing
fool you.

[Go2Peace]

3. But they left out laws to seperate risky financial instruments

That would not have broken the banks. There was simply no reason *not* to do it except greed and power, and every reason to.

Bill Black (former regulator for the last banking crisis in which people went to jail) has written about this. These "reforms" do not at all do what they need to. We are still at great risk unfortunately.

[aquart]

2. Another weak, worthless PR gesture.

And this with a Democratic majority and President. Oh, goody. We really do need to primary our own creeps.

And it would be nice if we stopped being hypnotized by slogans. "Yes we can!" Except we didn't bother.

[RKP5637]

4. +1, n/t

[Go2Peace]

5. The real answer is pretty simple. Just change the laws so corporate execs can be sued

The real issue that is going on is that execs and business owners have become completely insulated from the effects. The rich are completely safe and unaffected when they ineptly manager, steal, or take down a business.

As long as they can walk away unscaithed the pattern will continue. Once their own fortunes will be busted when these crisis hit they will stop. Not until.