Posted on 03/02/2009 4:55:44 PM PST by rabscuttle385
WASHINGTON (CNN) – Republican Sen. John McCain and Democratic Sen. Byron Dorgan plan to introduce legislation to create a Senate panel to investigate the causes of the financial crisis, McCain’s office said in a statement Monday.
If approved, the committee would also make recommendations about how to avoid a similar crisis in the future.
(Excerpt) Read more at politicalticker.blogs.cnn.com ...
Who you gonn’a call the McDork squad? The first of many who are finding themselves cut out on the take.
The Senaturds should save everyone the trouble & expense by setting up a bicameral committee consisting only of Frank & Dodd, asking them to write a report that whitewashes them both and blames Milton Friedman, and skipping this posturing crap.
That’s all we need is another frickin’ committee.
McCain should just pack his bags and hit the road!!!
Put all the relevant info out on the internet and let the court of public opinion make the call. Course you’d have to impose a gag order on the media for a while to prevent them from interfering.
I don’t think this is deregulation at all. In fact it appears more like mandated undue risk taking. The rest of the industry devised ways to deal with the risk by diversifying, or spreading it around. It ended up way out of control because risk was mitigated so well at origination that they were completely off the hook and rewarded for it.
(source: FDIC)
12 U.S.C. 1843 k and n are located under 225.84 in this post.
§ 225.84 What are the consequences of failing to maintain a satisfactory or better rating under the Community Reinvestment Act at all insured depository institution subsidiaries?
(a) Limitations on activities—(1) In general. Upon receiving a notice regarding performance under the Community Reinvestment Act in accordance with paragraph (a)(2) of this section, a financial holding company may not:
(i) Commence any additional activity under section 4(k) or 4(n) of the BHC Act (12 U.S.C. 1843(k) or (n)); or
(ii) Directly or indirectly acquire control, including all or substantially all of the assets, of a company engaged in any activity under section 4(k) or 4(n) of the BHC Act (12 U.S.C. 1843(k) or (n)).
(2) Notification. A financial holding company receives notice for purposes of this paragraph at the time that the appropriate Federal banking agency for any insured depository institution controlled by the company or the Board provides notice to the institution or company that the institution has received a rating of “needs to improve record of meeting community credit needs” or “substantial noncompliance in meeting community credit needs” in the institution’s most recent examination under the Community Reinvestment Act.
(b) Exceptions for certain activities—(1) Continuation of investment activities. The prohibition in paragraph (a) of this section does not prevent a financial holding company from continuing to make investments in the ordinary course of conducting merchant banking activities under section 4(k)(4)(H) of the BHC Act (12 U.S.C. 1843(k)(4)(H)) or insurance company investment activities under section 4(k)(4)(I) of the BHC Act (12 U.S.C. 1843(k)(4)(I)) if:
(i) The financial holding company lawfully was a financial holding company and commenced the merchant banking activity under section 4(k)(4)(H) of the BHC Act (12 U.S.C. 1843(k)(4)(H)) or the insurance company investment activity under section 4(k)(4)(I) of the BHC Act (12 U.S.C. 1843(k)(4)(I)) prior to the time that an insured depository institution controlled by the financial holding company received a rating below “satisfactory record of meeting community credit needs” under the Community Reinvestment Act; and
(ii) The Board has not, in the exercise of its supervisory authority, advised the financial holding company that these activities must be restricted.
(2) Activities that are closely related to banking. The prohibition in paragraph (a) of this section does not prevent a financial holding company from commencing any additional activity or acquiring control of a company engaged in any activity under section 4(c) of the BHC Act (12 U.S.C. 1843(c)), if the company complies with the notice, approval, and other requirements of that section and section 4(j) of the BHC Act (12 U.S.C. 1843(j)).
(c) Duration of prohibitions. The prohibitions described in paragraph (a) of this section shall continue in effect until such time as each insured depository institution controlled by the financial holding company has achieved at least a rating of “satisfactory record of
{{2-28-01 p.6110.28-C}}meeting community credit needs” under the Community Reinvestment Act at the most recent examination of the institution.
[Codified to 12 C.F.R. § 225.84]
[Section 225.84 added at 65 Fed. Reg. 3792, January 25, 2000; amended at 66 Fed. Reg. 417, January 3, 2001, effective February 2, 2001]
12 U.S.C. 1843
[snip]
(k) ENGAGING IN ACTIVITIES THAT ARE FINANCIAL IN NATURE.—
(4) ACTIVITIES THAT ARE FINANCIAL IN NATURE.—For purposes of this subsection, the following activities shall be considered to be financial in nature:
(A) Lending, exchanging, transferring, investing for others, or safeguarding money or securities.
(B) Insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability, or death, or providing and issuing annuities, and acting as principal, agent, or broker for purposes of the foregoing, in any State.
(C) Providing financial, investment, or economic advisory services, including advising an investment company (as defined in section 3 of the Investment Company Act of 1940).
(D) Issuing or selling instruments representing interests in pools of assets permissible for a bank to hold directly.
(E) Underwriting, dealing in, or making a market in securities.
(F) Engaging in any activity that the Board has determined, by order or regulation that is in effect on the date of the enactment of the Gramm-Leach-Bliley Act, to be so closely related to banking or managing or controlling banks as to be a proper incident thereto (subject to the same terms and conditions contained in such order or regulation, unless modified by the Board).
(G) Engaging, in the United States, in any activity that—
(i) a bank holding company may engage in outside of the United States; and
(ii) the Board has determined, under regulations prescribed or interpretations issued pursuant to subsection (c)(13) (as in effect on the day before the date of the enactment of the Gramm-Leach-Bliley Act) to be usual in connection with the transaction of banking or other financial operations abroad.
(H) Directly, or indirectly acquiring or controlling, whether as principal, on behalf of 1 or more entities (including entities, other than a depository institution or subsidiary of a depository institution, that the bank holding company controls), or otherwise, shares,
{{12-30-99 p.6046.02}}assets, or ownership interests (include debt or equity securities, partnership interests, trust certificates, or other instruments representing ownership) of a company or other entity, whether or not constituting control of such company or entity, engaged in any activity not authorized pursuant to this section if—
(i) the shares, assets, or ownership interests are not acquired or held by a depository institution or subsidiary of a depository institution;
(ii) such shares, assets, or ownership interests are acquired and held by—
(I) a securities affiliate or an affiliate thereof; or
(II) an affiliate of an insurance company described in subparagraph (I)(ii) that provides investment advice to an insurance company and is registered pursuant to the Investment Advisers Act of 1940, or an affiliate of such investment adviser;
as part of a bona fide underwriting or merchant or investment banking activity, including investment activities engaged in for the purpose of appreciation and ultimate resale or disposition of the investment;
(iii) such shares, assets, or ownership interests are held for a period of time to enable the sale or disposition thereof on a reasonable basis consistent with the financial viability of the activities described in clause (ii); and
(iv) during the period such shares, assets, or ownership interests are held, the bank holding company does not routinely manage or operate such company or entity except as may be necessary or required to obtain a reasonable return on investment upon resale or disposition.
(I) Directly or indirectly acquiring or controlling, whether as principal, on behalf of 1 or more entities (including entities, other than a depository institution or subsidiary of a depository institution, that the bank holding company controls) or otherwise, shares, assets, or ownership interests (including debt or equity securities, partnership interests, trust certificates or other instruments representing ownership) of a company or other entity, whether or not constituting control of such company or entity, engaged in any activity not authorized pursuant to this section if—
(i) the shares, assets, or ownership interests are not acquired or held by a depository institution or a subsidiary of a depository institution;
(ii) such shares, assets, or ownership interests are acquired and held by an insurance company that is predominantly engaged in underwriting life, accident and health, or property and casualty insurance (other than credit-related insurance) or providing and issuing annuities;
(iii) such shares, assets, or ownership interests represent an investment made in the ordinary course of business of such insurance company in accordance with relevant State law governing such investments; and
(iv) during the period such shares, assets, or ownership interests are held, the bank holding company does not routinely manage or operate such company except as may be necessary or required to obtain a reasonable return on investment.
[Codified to 12 U.S.C. 1843k]
[Source: Section 4k of the Act of May 9, 1956 (Pub. L. No. 511), as added by section 103(a) of title I of the Act of November 12, 1999 (Pub. L. No. 106—102; 113 Stat. 1342), effective March 12, 2000]
[snip]
(n) Authority To Retain Limited Nonfinancial Activities and Affiliations.—
(4) Continuing revenue limitation on grandfathered commercial activities.—Notwithstanding any other provision of this subsection, a financial holding company may continue to engage in activities or hold shares in companies pursuant to this subsection only to the extent that the aggregate annual gross revenues derived from all such activities and all such companies does not exceed 15 percent of the consolidated annual gross revenues of the financial holding company (excluding revenues derived from subsidiary depository institutions).
[Codified to 12 U.S.C. 1843(n)]
[Source: Section 4(n) of the Act of May 9, 1956 (Pub. L. No. 511), as added by section 103(a) of title I of the Act of November 12, 1999 (Pub. L. No. 106—102; 113 Stat. 1347), effective March 12, 2000; section 611 of title VI of the Act of October 13, 2006 (Pub. L. No. 109—351; 120 Stat. 1984), effective October 13, 2006]
I'm guessing this is an attempt on his part to vindicate himself for throwing the election away and it may be personal. Still not holding my breath.
I still don't understand how you can justify helping to make slaves of an entire Country.
Why is McCain like a drowned Chinese Monk? He still thinks he can work with commies and even after they float all his friends under twelve feet of water.
The cause of the financial crisis: The Federal Government = YOU IDIOTS!!
That’s hilarious.
The Commie branch of the Federal Government and a bunch of greedy pirates at the helm with our money.
you forgot 0bambi...the KFC...[kenyan Friggin commie]...
A futile exercise. They’ll point fingers of blame at everyone and everything but themselves.
God help us all!
Wow, so McCain is going to out his own campaign manager, Rick Davis, for his shady dealings lobbying for the sub- prime mortgage industry and being on the Freddi Mac millioniare club payroll, eh? LOL!
I’ll give McCain credit on one thing: he was all over the Fannie & Freddie fiasco from the beginning.
Rhinos are noble. RINOs, on the other hand, are basically weasels.
LALALALALA!
McCains honesty is an inch deep and a mile wide!
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