Senate Passes Fianance Bill ...

[teamjordan79]

http://online.wsj.com/article/SB100...6352143175906.html?mod=rss_com_mostcommentart

• Establish a new council of "systemic risk" regulators to monitor growing risks in the financial system, with the goal of preventing companies from becoming too big to fail and stopping asset bubbles from forming, such as the one that led to the housing crisis.

• Create a new consumer protection division within the Federal Reserve charged with writing and enforcing new rules that target abusive practices in businesses such as mortgage lending and credit-card issuance.

• Empower the Federal Reserve to supervise the largest, most complex financial companies to ensure that the government understands the risks and complexities of firms that could pose a risk to the broader economy.

• Allow the government in extreme cases to seize and liquidate a failing financial company in a way that protects taxpayers from future bailouts.

• Give regulators new powers to oversee the giant derivatives market, increasing transparency by forcing most contracts to be traded through third-parties instead of only between banks and their customers. Derivatives, which are complex financial instruments, are often used to hedge risk. Speculative trading in the contracts led to losses at many banks in the 2008 crisis.
Can someone shed some  light on this? Will this really help the root of the problem? To me this looks like another Trojan-horse bill that gives more power to corporate america, the central bank, and the govt kinda like the federal reserve act of 1913 and the new deal legislature during FDR administration. 

 

[boilermaker x]

I think "paper tiger" was the metaphor you were looking for.

 

[cabron james 23]

Fianance