Surprise, surprise, surprise!
Submitted By Todd on June 25th at 11:26am
Why are Democrats so excited about the new, 2000 page, financial reform bill?
“It’s a great moment. I’m proud to have been here."What are the changes that make them so confident that the measure will make a stronger financial system? Chris Dodd explains.
No one will know until this is actually in place how it works. But we believe we’ve done something that has been needed for a long time.Reminiscent of the Nancy Pelosi tease that Health Reform had to be passed if we wanted to know what's in it, this is a repeat of the pattern that has Americans so concerned.
A new consumer protection bureau housed in the Federal Reserve would have independent funding, an independent leader and near-total autonomy to write and enforce rules. The government would have broad new powers to seize and wind down large, failing financial firms and to oversee the $600-trillion derivatives market. In addition, a council of regulators, headed by the Treasury secretary, would monitor the financial landscape for potential systemic risks.How about the last minute, $19 billion tax?
Towards the end of the 20-hour debate, Barney Frank, chairman of the House financial services committee, announced the surprise bank fee, saying it was legitimate to ask financial institutions whose “collective errors” had damaged the economy to pay the – unexpectedly high – cost of the reform. “We think that to go to the Goldman Sachses, JPMorgan Chases, Blackstones … is reasonable,” he said.A surprise tax is not really a surprise.