Posted on 11/23/2011 12:11:30 PM PST by St. Louis Conservative
With a brand new proposal, Republican presidential candidate Jon Huntsman is the only GOP 2012er to have moved beyond “repeal Dodd Frank” (which sounds like a return-to-the-status-quo) and fashioned a serious and comprehensive — and bold — financial reform plan. He’s for repealing Dodd Frank, of course, but also a) reducing bank leverage by axing the deduction for interest payments and b) shutting down Fannie and Freddie.
But eliminating “too big to fail” is really the core of what he’s trying to do. As Team Huntsman correctly notes, the six largest U.S. financial institutions are significantly bigger than they were before the financial crisis. These banks now have assets worth over 66 percent of gross domestic product—at least $9.4 trillion, up from 20 percent of GDP in the 1990s. And the major banks’ too-big-to-fail status gives them a huge advantage in borrowing over their competitors. This funding subsidy amounts to at least 25 basis points and perhaps as much as 50 basis points. Indeed, that edge is proof TBTF still exists.
(Excerpt) Read more at blog.american.com ...
Are Pubs getting so desperate they have to resort to actual purposals???
Are Pubs getting so desperate they have to resort to actual purposals???
The only REMAINING Republican candidate. Cong. Thad McCotter proposed bank re-structuring LONG before anyone else. Along with that he introduced legislation (HR2889) to FIX Social Security without raising the retirement age, without raising the withholding, without reducing benefits and without privatization. He is strongly against our current “relationship” with China, strongly for securing the borders, strongly anti-amnesty, and has a high rating by every Conservative group. Would have dissected all comers in a debate, but wasn’t allowed to participate. McCotter was NOT included in the polls cited for entry in the debates. Nice rules. Its why you’re stuck with the cast of characters you have now.
I just wish he wasn't a global warming nut or such a technocrat. Better than Romney because he's pro-gun, but not that much.
Well naturally, I totally disagree with your characterization......but having been an ambassador under Obama is not a deal-breaker, in and of itself.
Seems this guy has more in common with OWS then anything Conservative.
1. Set a hard cap on bank size based on assets as a percentage of GDP. (This cap would be on total bank size, not using any of the illusory “risk-weights” currently central to thinking about bank accounting. The lowest risk assets for banks in Europe, supposedly, are sovereign debt—yet this very same debt is now at the heart of the current crisis.
2. We should have a similar cap on leverage—total borrowing—by any individual bank, relative to GDP.
3. Explore reforms now being considered by the U.K. to make the unwinding of its biggest banks less risky for the broader economy.
4. Impose a fee on banks whose size exceeds a certain percentage of GDP to cover the cost they would impose on taxpayers in a bailout, thus eliminating the implicit subsidy of their too-big-to-fail status. The fee would incentivize the major banks to slim themselves down; failure to do so would result in increasing the fee until the banks are systemically safe. Any fees collected would be used to reduce taxes for the broader non-financial corporate sector.
5. In addition, focus on establishing an FDIC insurance premium that better reflects the riskiness of banks’ portfolios. This would provide an incentive for banks to scale down, allowing the financial system to absorb them organically in the event of a collapse.
6. Strengthen capital requirements, moving far beyond what is envisaged in the current Basel Accord. The Accord is a mixture of regulatory oversight and political compromise. As a result, the U.S. has allowed its banking policy to be determined by the “least common denominator” among European and Asian countries, many with a long history of not being prudent.
Seriously? During a debate with his former boss, all the latter has to do is say, “If I am such a bad guy, then why did you work for me?”
You would have a point if Huntsman hadn’t written that love letter to BHO.
Huntsman is getting on my radar as the class person on the stage both for domestic and foreign policy. He has not partaken of the batsh’t koolaid juice the others have drank to give them brain freeze or just plain irritable manners.
Huntsman was really good last night. Moved up in my book.
Another big plus: Really cute daughters. Those girls are delightful and quite the contrast to know nothing Meghan McCain.
But I'm still not ready to switch as long as Heman Cain has a shot. I still think he's the better candidate by a long shot.
It is possible that Huntsman's Dad has talked some sense into him. There is still a lot of guilt floating around in the family because Huntsman Chemicals made their fortune on some products which weren't exactly environmentally friendly. Remember the styrofoam clamshell cover for burgers which was popular a quarter century or so ago?
I was working a job which put me on the road a lot and liked the things. Much better insulating ability for my burger than those damn paper wrappers they use now . . . plus a lot neater to reclose or use as a ketchup bin for your fries.
I never understood why the greenies were so down on the product. They still throw away massive amounts of styrofoam drink cups and the like . . .
Has Huntsman smacked the illegal alien tar baby yet? Didn’t work out well for Perry, and we will see about Newt in a week or two.
I worked for my country, not solely for a president. I don't think you are a bad guy, but you're not competent enough for the job, and the economy today here shows that.
Romney's biggest problem isn't that he's liberal. His probably is that people don't trust him. Huntsman is who he is. That global warming thing though is real tough for me to get past. I live in car country.
Actually, Huntsman’s economic plan is the most conservative of all the candidates. And Huntsman is the only candidates who has proposed winding down Fannie & Freddie.
The only REMAINING Republican candidate.....
He is strongly against our current “relationship” with China, strongly for securing the borders, strongly anti-amnesty, and has a high rating by every Conservative group. Would have dissected all comers in a debate, but wasn’t allowed to participate. McCotter was NOT included in the polls cited for entry in the debates. Nice rules. Its why you’re stuck with the cast of characters you have now.
Why do you say he is remaining, and if he is such a great conservative then why did he do an about-face and support Romney?
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