Wall Street WARZONE

Wall Street Lobbyists Sinking Washington, Obama, Dodd: $400 Million to Kill Financial Reforms & Destroy America. Warning, They Are Winning The War!

by Paul B Farrell, JD, PhD
| | 3/12/2010

Yes, Wall Street wins, again. Wall Street’s control America is a drama right out of a Scorsese film about the mafia and crime in New York. They bought off Chris Dodd, who’s capitulated to the darkside while “interviewing” for a million dollar job as a lobbyist. They bought off, President Obama. Turns out he’s no Luke Skywalker, no ”game-changer,” not even much of a Chicago politican. They spent $400 million to kill financial reforms in Congress, to make absolutely sure the American public gets screwed, again … and in the process, they are setting up the next collapse. The big one. The dotcom crash didn’t do it. The subprime credit meltdown didn’t do it. What will? Another, bigger event … a combo of the “Collapse of the American Empire,” plus the “Great Depression II.”

If financial reform ain’t dead, it’ll end up watered down to nothing. That was obvious in a recent Charlie Rose interview with financial reformer Elizabeth Warren in Bloomberg/BusinessWeek: Outrage and Financial Reform. Warren’s a Harvard Law School Professor chairing of the Congressional Oversight Panel. The panel was ”created in 2008 to monitor the Treasury’s bank bailout and to review the regulation of financial markets.” Wall Street hates any reform that would expose their insatiable greed fighting all financial reforms in America, especially the Consumer Financial Protection Agency (CFPA). So Wall Street doesn’t like Warren much. Here are a few clips summarizing why she’s an Eliot Ness character they’d like to eliminate:

There are seven bureaucracies in Washington right now that each own a piece of consumer financial protection. Bloated, inefficient, and either ignored and ineffective or captured by the large financial institutions. [This is] the regulatory system we’ve got now. It works very well for the large financial institutions because it means no effective regulation. What I want is to take this agency out of those seven agencies, shrink it down, and make it effective. You’ve got to have an agency that’s ultimately independent, whether it’s located within the Fed, within Treasury, within the Department of Agriculture, or whether it sits in its own separate place. The key is whether or not it is functionally independent. Does it write its own rules? Does it enforce those rules and does it have access to a budget that’s independent of the folks who want to smother it?

This is an agency that just makes sense. This isn’t liberal or conservative. This isn’t a division of ideology. This is about bank lobbyists. This is about people who are paid professionally to kill this agency so they can protect the revenues of Wall Street banks. …

Rose then put the core question of indepencence in context: “As part of overall financial reform, where do you put the significance of the agency?”

The tip of the spear in the sense that this is where our financial crisis started: one lousy mortgage at a time; one family who got tricked, cheated at a time. Then those risks were sliced, diced, and put into all kinds of fancy financial instruments that made billions for Wall Street banks and then [crashed] the whole system … We started at families. The other end is too big to fail. [We need] a Chapter 11 system, whatever we want to call it, a part of the legal structure that permits us as a people to say with real credibility: I don’t care what your business is. I don’t care how big you are, how intertwined you are. If you make bad enough decisions, you can be liquidated. Your shareholders wiped out and top management fired.

Huffington Post reports the Senate may have a compromise that House Financial Services Chairman Barney Frank called a “joke” that it won’t pass in the House.

“Elizabeth Warren has one message: Pass a strong bill or nothing at all … There’s been a steady leak of Senate proposals to fix the dysfunctional way federal regulators protect consumers from abusive lenders. One was an independent unit housed within the Treasury Department; another was a new entity, housed in the Federal Reserve, with little independence or power.  The Senate shouldn’t waste its time, asserts Warren, explaining that current proposals fail to address some of her key priorities such as arming the proposed agency with independent rule-making authority, without interference by bank regulators.”

Now you see why the “too-political-to-fail” fat-cat banks are spending hundreds of millions to lobbyists to kill all financial reforms, especially CFPA, and what Elizabeth Warren is Wall Street’s Eliot Ness.

4 Responses to Wall Street Lobbyists Sinking Washington, Obama, Dodd: $400 Million to Kill Financial Reforms & Destroy America. Warning, They Are Winning The War!
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