Posted on 05/21/2010 5:27:56 PM PDT by SmartInsight
The Senate late Thursday passed a sweeping financial reform bill that promises to impose new oversight over the nation’s increasingly complex financial industry, from Wall Street behemoths like JPMorgan Chase to small community banks and storefront payday lenders.
While the potential effect on banks was obvious, many nonbank businesses worried that they too might be swept into the legislation, hurting their ability to extend credit to their customers or hedge their investments against losses.
While the amendment successfully removed all but the very largest plumbers and orthodontists from the new agency's purview, some business groups said it still left midsize business owners vulnerable to additional regulation, which they deemed unnecessary.
On Thursday evening an amendment to exempt car dealers was withdrawn before the final vote. As a result, under the Senate bill, the new consumer protection agency would regulate car dealers.
(Excerpt) Read more at nytimes.com ...
All those, even some here, who were celebrating, "let's regulate evil Wall Street", should realize what it means when Democrats regulate -- they are taking everything over.
This is an economy killer bill. They will have so much regulations "to protect the consumer", so it will make it nearly impossible to obtain credit.
The economy is too large and too fast to manage centrally. This program as well as health care will fail early for this reason.
Chambliss speaks on finance, oil spill
http://www.walb.com/Global/story.asp?S=12522777
Senator Saxby Chambliss says the new financial reform bill will hurt small South Georgia business.
He says small businesses like dentists, orthodontists, funeral directors, and other businesses that accept monthly payments, will feel the biggest impact of the regulatory reform legislation.
“Any retail establishment that charges any amount of interest on a monthly basis is going to be subject to huge federal regulations. That’s not what we need to be doing in times when we are trying to create jobs in the small business community.”
Senator Chambliss said the bill would do little to stop the lending practices that led to the economic crisis, because Freddie Mac and Fannie Mae, are exempted from the oversight.
Like, I didn’t see that coming! s/
The only ‘bidness’ left will be the monopolies. They will be the only ones able to spread out the cost of doing “bidness”. Talk about how to eliminate the competition.
Unchecked power to unelected regulators:
Finance reform bill leaves some key decisions to regulators
http://www.washingtonpost.com/wp-dyn/content/article/2010/05/07/AR2010050705045.html
From limiting the risky activities of big financial firms to setting precise capital standards for banks, the legislation would leave it to regulators to study a range of topics and make those critical decisions on their own.
If the bill passes, it would launch one of the biggest regulatory reorganization efforts Washington has seen in years. New agencies, such as a consumer financial protection regulator, would be established. Long-standing bank regulators would be combined. Regulators would have to launch more than 20 studies on controversial topics, such as new curbs on short-sales of stock and how much cash reserves large non-bank financial companies should hold.
It simply takes a while to eliminate the bit players. The monopolists are only interested in preserving their niche without much competition.
It’s so much easier/cheaper to capture value and maintain it through political means than to actually present to/compete for consumers products that create value.
eliminating any checks and balances to this fiasco.
Isn’t anyone concerned that the courts are left out?
The Senate bill cedes the setting of new capital levels to an ongoing international effort led by a group based in Switzerland called the Basel Committee on Banking Supervision. Lawmakers and administration officials say that such standards need to be coordinated across borders, otherwise banks will move to countries with the weakest rules.
credit is bad.
businesses need customers
I would think most smaller businesses would just ignore this regulation. I would.
Send those dumb FReepers my way. How can we ever expect government to “make it better”? Haven’t FReepers seen enough to know that government is by its nature political?
It will always help insiders, the wealthy and the powerful. Big likes big.
This conservative populism is politically naive and dangerous to liberty.
Natural Law is real. Caveat emptor, always.
“Send those dumb FReepers my way. How can we ever expect government to “make it betterâ€? Haven’t FReepers seen enough to know that government is by its nature political?”
Read this thread:
Wall Street Firms Brace for Seismic Changes (will cut profits by 20%)
http://www.freerepublic.com/focus/f-news/2518357/posts
Actually, that thread appears to be running 5 to 1 in favor of markets and against government intervention. I just saw two misinformed FReepers there.
Maybe the cure has started. ;-]
Whatever the intentions going in, Fascism and corruption will come out of this.
America as we knew it is gone. This law (along with amnesty) will insure that we NEVER get it back.
“This law (along with amnesty) will insure that we NEVER get it back.”
Don’t forget the “healthcare reform” which is meant to kill off everyone who even remembers what it was like before.
20%. New York depends on those profits for tax revenue. It’s screwed.
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