Posted on 05/20/2009 5:21:59 AM PDT by randita
Posted by Karl Denninger in Editorial at 08:12
Ok, You're A Crook Obama
I was willing to give President Obama the benefit of the doubt.
Not any more:
May 19 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its duties under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said.
The proposal, still being drafted, is likely to give the Federal Reserve more power to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said.
That is unconscionable.
Go back and read the White Paper I published a couple of days ago.
The Fed had primary responsibility for preventing banks from lending unsecured beyond their excess capital. Instead they willfully and intentionally covered up bank insolvency through the use of "23A" letters and other machinations.
This is not conjecture - the historical record is present for anyone who cares to look. The 23A letters are a matter of fact, not supposition and the fact that several firms given them "in the interest of stability" later failed and resulted in significant losses to the system as a whole, including the FDIC, is also a fact.
That "Prompt Corrective Action" absolutely barred this sort of action is a fact.
That The Federal Reserve Act has been intentionally ignored is a fact.
Now President Obama wishes to give the fox, who just got done eating half the chickens, formal status as guard over the henhouse?
Please don't take this as an endorsement of the SEC. After all, the SEC in 2004 granted Henry Paulson's request (on behalf of Goldman and the other investment banks) to drop the 12:1 leverage limit - a change that we now know was directly responsible for the failure of both Bear Stearns and Lehman!
For those who want to play "banker baseball" your ire is misplaced. We have formal regulatory structures in our government that are charged with preventing this sort of nonsense.
These regulators have been sleeping (in some cases with) or actively conspiring along with those who created this mess; without an ignorant or complicit regulatory function it is not possible for the sort of game-playing that has gone on to occur, nor can the damage that happened our our economy come to pass.
Heads need to roll across the board; we can argue about what agency should get regulatory responsibility going forward after we deal with ejecting sans parachute each and every person involved in intentional malfeasance or misfeasance thus far, including Geithner, Bernanke and all the "career folks" at the SEC who it is alleged have been trading on inside information!
This nation desperately needs a statesman who will stand up and say "no more fraud and theft - period damnit! Every one of you jagoffs is going straight to prison!"
We weren't going to get it with McCain and his condescending brand of political crap, but it has unfortunately become very clear that Obama is similarly compromised.
Prepare for The Greater Depression folks, because with this sort of outrage and a refusal to address the problem through reform and punishment for the guilty who brought about this disaster it is inevitable.
SPX 300 is on deck.
PS: We need a new political party and we need it now.
You got that right! incredible. Bammi almost told us he was a Marxist - even I, not the brightest bulb in the bunch could figure him out and this guy voted for him? What a loser. Better hang up your pens and pencils, guy.
I think McCain would have done exactly what the Kenyan is doing. Do you hear him complaining about any of Obama’s socilaism/fascism/corruption?
What you do hear out of McCain and his merry bad of socialists is that conservatives are over with and so is Reagan’s freedom. If we will all just celebrate homosexuality and porn, everything would be fine in McCain’s pup tent party.
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