Top of the Morning

Top of the morning

In case you are wondering why folks are protesting against the folks on Wall Street and the cozy relationship they have with people in Congress who are supposed to be representing us, check out Gretchen Morgenson’s column in the Sunday New York Times.  The first few lines sum it up.

Wall Street loves to do business in the shadows. Sunshine, after all, is bad for profits. So it is perhaps unsurprising that players in the derivatives market want to thwart one of the worthier aims of the Dodd-Frank financial regulation: to bring transparency to the huge market for instruments known as swaps. Now some in Congress, on both sides of the aisle, are trying to block that goal, too.

 

6 Comments

  1. Nonanonymous

    November 28, 2011 at 7:54 am

  2. david esmay

    November 28, 2011 at 10:02 am

    Unfortunately, congress is not going to focus on promoting job growth with elections looming next year. Their entire focus will be on consolidating their base and preserving their jobs, which they now spend roughly 65% of their time doing. This latest attack on Dodd-Frank does not benfit the consumer, the people who buy these swaps, investment banks and traders oppose it because it gives the consumer a platform on which to choose, inviting competition, something banks don’t like because it cuts into their profits, and informed and impowered consumers are bad for their bottom line. Investment banks and traders want to be able to hide the value of the assets on which the derivatives are based, that way they can once again trade worthless derivatives at enormous profits. In September the nations biggest banks increased their holdings of derivatives to nearly 250 trillion dollars. The four biggest banks, JP Morgan Chase, Citigroup, BofA, and Goldman-Sachs held roughly 95% of the industry’s total exposer, jeopradizing our economy once again.

  3. david esmay

    November 28, 2011 at 10:47 am

    In 2010, these banks spent 29.4 million lobbying congress, even while new disclosures brought to light by Bloomberg’s FOI act, that they secretly recieved an additional 5.5 trillion on top of the publicly acknowledged 1.2 trillion in bailout money, including the 700 billion in TARP. As nobel laureate and Univ. of California economics professor Oliver Williamson has stated, “The banks that were too big got even bigger, and the problems that we had to begin with are magnified in the process. The banks have incentives to take risks they wouldn’t, if they didn’t have government support. It’s a serious burden on the economy.” As far as banks are concerned, risk and burden is the sole domain of the tax payer, and profit is theirs.

  4. david esmay

    November 28, 2011 at 11:01 am

    Who fought Blombergs lawsuit under the freedom of information act all the way to the supreme court? The Clearing House Association LLC, a group comprised of the biggest banks and the Fed. The same people who lied and hid information from congress while they debated Dodd-Frank, in order to weaken it and preserve the status quo. Bring back Glass-Steagall.

  5. Nonanonymous

    November 28, 2011 at 2:06 pm

    So, unemployment will not improve, and we’ll have higher numbers on food assistance and living near or below the poverty line.

    Both parties have failed as evidenced by the Tea Party and OWS. I think I’ll vote for the only independent candidate, Ron Paul.

  6. david esmay

    November 28, 2011 at 2:40 pm

    The GOTPers have adopted fiscal calamity as their only recourse to gain power, they seem to forget that the real reasons we have increased deficits, two unfunded wars, tax cuts in 01,03, and 06. End the Bush tax cuts, and the wars, and focus on job creation, then the economy will turn around and state and federal coffers will begin to right themselves. Instead they will put the needs of their party ahead of the needs of the people. The GOP is going to nominate Romney, then you’ll really see how it’s done,( trash the economy while enriching your friends), by putting a hedge fund manager in the white house. Fortunately that’s not going to happen, the GOP field is made up of clowns who will say anything to get a vote, except for Huntsman, and Paul is bat s!@t crazy.