Why the "Financial Regulations" bill is a failure for consumers.

[sandorski]

The "better than nothing" crowd can't see these kinds of regulations help the big guys (the big banks we all hate) get bigger. And bigger and bigger. Why? Because those little guys, you know the ones people like Arianna Huffington told us to start doing business with instead of the "too big to fails," simply have a harder and harder time being able to cover the costs of these regulations. They are simply too small to absorb the costs. Did you ever wonder how these big firms got to be so big in the first place? Too big to fail is about to become way too big to fail. And when they go back to the taxpayers with their hands out saying "we fucked up again and we need another bailout," you suckers will find every fucking excuse in the world to give it to them, and people like me will be blasted for trying to say "no." Edit: Again.

If Obama accomplished preventing that, you would call him a __________

 

[bamacre]

If Obama accomplished preventing that, you would call him a __________

I would call him the 3rd president to get rid of a US central bank.

 

[lothar]

The "better than nothing" crowd can't see these kinds of regulations help the big guys (the big banks we all hate) get bigger. And bigger and bigger. Why? Because those little guys, you know the ones people like Arianna Huffington told us to start doing business with instead of the "too big to fails," simply have a harder and harder time being able to cover the costs of these regulations. They are simply too small to absorb the costs. Did you ever wonder how these big firms got to be so big in the first place? Too big to fail is about to become way too big to fail.

This bill does more damage to community banks than Wall Street banks.

Hmmm...I only see one Wall St. bank on the list. Did the remaining 29 community banks cause or contribute to the financial crisis?
Hell, of the 30 banks on the list I've only heard of five of them(SunTrust, M&T Bank, Regions Financial, Associated Bank, and Bank of America). The remaining are completely new to me.

Big Wall St. banks like Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and the others can easily makeup the fees by charging for burgers instead of sodas.
For most community banks? Soda's is all they've got unless they want to start charging for salt and pepper satchets.

Community banks earn most of their profits from debit/credit transactions and bank service fees unlike Wall St. banks which offer "full" service products and can earn money through other sources.

 

[yllus]

The "better than nothing" crowd can't see these kinds of regulations help the big guys (the big banks we all hate) get bigger. And bigger and bigger. Why? Because those little guys, you know the ones people like Arianna Huffington told us to start doing business with instead of the "too big to fails," simply have a harder and harder time being able to cover the costs of these regulations. They are simply too small to absorb the costs. Did you ever wonder how these big firms got to be so big in the first place? Too big to fail is about to become way too big to fail. And when they go back to the taxpayers with their hands out saying "we fucked up again and we need another bailout," you suckers will find every fucking excuse in the world to give it to them, and people like me will be blasted for trying to say "no." Edit: Again.

That's a nice little bit of unrelated rhetoric, but that's all it is - unrelated rhetoric.

Mandating banks to firewall their investment arms from their consumer operations isn't going to harm little banks. You know why? Because small banks don't have investment arms.

Adding SEC and CFTC oversight to derivatives isn't going to harm little banks. You know why? Because small banks don't play with derivatives past their use as a little bit of insurance (what they were created for).

The free market solution of allowing Moody's and Standard & Poor, public companies both, sure worked out great for ensuring proper information was passed on to the end customer/investor, didn't it? They rated those junk bonds as AAA until the very end. A new Office Of Credit Ratings? Please, bring it on!

People like you are amongst the worst of the people who add their voices to a debate. You take the one boilerplate argument you've got - "GOVERNMENT BAAAAAAAAAD!" - and apply it without thinking to any scenario. Yes, you will be blasted for bleating mindlessly without knowing the details. As well you should be.

 

[sandorski]

I would call him the 3rd president to get rid of a US central bank.

wut?

 

[lothar]

That's a nice little bit of unrelated rhetoric, but that's all it is - unrelated rhetoric.

Mandating banks to firewall their investment arms from their consumer operations isn't going to harm little banks. You know why? Because small banks don't have investment arms.

Adding SEC and CFTC oversight to derivatives isn't going to harm little banks. You know why? Because small banks don't play with derivatives past their use as a little bit of insurance (what they were created for).

The free market solution of allowing Moody's and Standard & Poor, public companies both, sure worked out great for ensuring proper information was passed on to the end customer/investor, didn't it? They rated those junk bonds as AAA until the very end. A new Office Of Credit Ratings? Please, bring it on!

People like you are amongst the worst of the people who add their voices to a debate. You take the one boilerplate argument you've got - "GOVERNMENT BAAAAAAAAAD!" - and apply it without thinking to any scenario. Yes, you will be blasted for bleating mindlessly without knowing the details. As well you should be.

What about airlines(Southwest did this and they only had to pay $60/barrel of oil when oil was trading at $120/barrel) and agricultural(General Mills, Kellogg, Kraft Foods do this with corn and wheat) companies that use derivatives to smooth their operations? Are they exempt from this bill? or is this bill a blanket "all derivatives are bad" statement?

Moody's, Standard & Poor, and Fitch are government created/sponsored monopolies.
http://en.wikipedia.org/wiki/Nationally_Recognized_Statistical_Rating_Organization

 

[First]

wut?

I don't think even bam bam knows.

 

[Acanthus]

If these Regs prevent the repeat of the meltdown we're now recovering from, then they are Good. Pretty much the end of the discussion. Hopefully the Market will take care of these Banks turning around and simply Charging Customers more.

This, some banks will keep free checking and gain mountains of customers as a result.

The big 5 can fuck off, if you are a member of one of them you're an idiot anyway as they categorically have the worst customer service in their sector.

 

[StageLeft]

All bills out of washington these days are failures for citizens because they are poisoned by millions in lobbying dollars each and every time. This is sacrosanct.

 

[heyheybooboo]

This, some banks will keep free checking and gain mountains of customers as a result.

The big 5 can fuck off, if you are a member of one of them you're an idiot anyway as they categorically have the worst customer service in their sector.

Ding! Ding! Ding!

The Cons have to further 'talk-down' financial reform since their opposition failed so miserably (especially with the American people).




--

 

[Svnla]

This is happening to me as a consumer lately:

1. Credit rewards/cash back are getting smaller and harder to come by.
2. Harder to get rewards for free checking/money market/etc. accounts.
3. Interest rates at my savings/CDs/etc. accounts are nil to none.

Oh, the initial version of this bill would give consumers their credit score, not just report. The final version = nothing about the score.

 

[PeshakJang]

So which part of the bill puts Dodd and Frank in prison for their roles in causing this mess and profiting from it?

 

[Moonbeam]

Clearly we need a federal bank at each Post Office that offers checking, savings, credit cards, and investment in index funds, etc, covering all the average person's banking needs at a basic minimum at cost fee. If the banks are criminal organizations that are always ahead of government regulation and destroying the nation, then they should not exist. Liquidate them and put their assets in the treasury.

 

[ChunkiMunki]

I wish they just reinstated the Glass–Steagall Act, which worked pretty good for 70 years.

 

[CADsortaGUY]

You have a vote to send your states own representatives to Washington to vote against anything Dodd and Frank propose.

Which is approx the same voice as you have as a consumer with corporations.

So now what?

 

[BoberFett]

Which is approx the same voice as you have as a consumer with corporations.

So now what?

Actually as a consumer you get to vote daily. The free market is far more democratic than our "democracy."

 

[CADsortaGUY]

Actually as a consumer you get to vote daily. The free market is far more democratic than our "democracy."

Yeah, but his contention was that you have no voice if you aren't a customer. It's like not voting or a protest vote. But yes, it's daily in the free market

 

[dmcowen674]

Since Chris and Barney got us into this mess it seems natural that they would be the ones to get us out of it. ...lol...

What fools we are being played for.

But it's awesome to see so many people negatively affected.

Something I was told for years would never happen.

 

[gingermeggs]

Clearly we need a federal bank at each Post Office that offers checking, savings, credit cards, and investment in index funds, etc, covering all the average person's banking needs at a basic minimum at cost fee. If the banks are criminal organizations that are always ahead of government regulation and destroying the nation, then they should not exist. Liquidate them and put their assets in the treasury.

Why YOU! dirty Commie!
Lol!

 

[BoberFett]

Why YOU! dirty Commie!
Lol!

The government loses tens of billions of dollars in the DoE and nobody seems surprised. It spends trillions on unnecessary wars. You really think they're capable of running banking functions? Here, have some more koolaid.

 

[rudder]

http://www.usatoday.com/money/industries/banking/2010-07-19-1B_banks19_ST_N.htm

Will banks go overseas?

 

[child of wonder]

So if we do anything to regulate businesses, their profits remain the same as they all increase prices.

However, if we deregulate businesses they do whatever they want at the expense of consumers, the environment, local government, etc. The free market becomes useless since every business becomes corrupt and there are no alternatives.

What is the solution?

 

[MotF Bane]

All bills out of washington these days are failures for citizens because they are poisoned by millions in lobbying dollars each and every time. This is sacrosanct.

Yep, government exists for the corporations now. It's the suckers who still believe the government is for them.

 

[brencat]

Its a ridiculously argument in MHO to say, if we take away one ability of the banks to gouge the consumer, the banks will simply gouge us in another area.

No, but it is realistic to assume a company will look to replace said lost revenue by other means. To think otherwise is to kid yourself.

As it is, the bankers can't be trusted with our money, its simply human nature, too many Bankers will try to use our money as they gamble our money in various gambling casinos. If they win, they pocket the profits as personal profits, if they lose, they come and demand the tax payers bail their ass out. With a deal that sweet, no wonder everyone in the financial industry was gambling money they did not own, and when it went sour, its took down the entire world economy.

So the solution then is to never bail out anyone and make it clear there won't ever be any bailouts. The threat of extinction is the best motivator of good behavior I can come up with. Excellent -- we agree on something.

 

[sandorski]

No, but it is realistic to assume a company will look to replace said lost revenue by other means. To think otherwise is to kid yourself.



So the solution then is to never bail out anyone and make it clear there won't ever be any bailouts. The threat of extinction is the best motivator of good behavior I can come up with. Excellent -- we agree on something.

That works on an Individual Institution level, but not on a Sectoral level.