Why are Republicans against the Financial Market Regulations bill

C

Chapdog

Abreast of the situations
I'm curious what the main objections are. One thing that I dont like about it is it in my opinion is it doesn't go far enough in the regulation of destructive and manipulative stock trading.

HIGHLIGHTS OF THE NEW BILL
Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.
Ends Too Big to Fail: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.
Advanced Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.
Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go on unnoticed and unregulated - including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.
Federal Bank Supervision: Streamlines bank supervision to create clarity and accountability. Protects the dual banking system that supports community banks.
Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation.
Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.
Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefit special interests at the expense of American families and businesses.

Details: http://banking.senate.gov/public/_files/FinancialReformSummary231510FINAL.pdf
 
Because the Democrats proposed it.

IMHO, we should just walk in and tell Scott Brown and Susan Collins "Fine! You won't support it, and you won't tell us why, but you apparently still want to regulate the markets. If it's such a big deal to you, write a goddamn bill that you would support, give it to us, and we'll pass it. Because I doubt it would be different in any substantive way."

McConnel's just been whispering in their ear. It's all politics.
 
Chapdog said:
I'm curious what the main objections are. One thing that I dont like about it is it in my opinion is it doesn't go far enough in the regulation of destructive and manipulative stock trading.

HIGHLIGHTS OF THE NEW BILL
Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.

Ends Too Big to Fail: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big;
updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

Advanced Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.

Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go on unnoticed and unregulated - including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

Federal Bank Supervision: Streamlines bank supervision to create clarity and accountability. Protects the dual banking system that supports community banks.

Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation.

Protects Investors: Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.
Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefit special interests at the expense of American families and businesses.

Details: http://banking.senate.gov/public/_files/FinancialReformSummary231510FINAL.pdf
Click to expand...

What I don't like about it is an echo of your first paragraph, though like this bill... It does not go far enough. A companies size shouldn't matter nearly as much as putting firewalls back in place to prevent this same bullshit from happening again.

1) The retail banking (checking, savings, loans, mortgages etc...) should be kept separate from investment banking. Break the retail side back out of the large investment banks. (ie... put Glass Steagall back in place)

2) All hedge funds should be held accountable just like every other investment firm. ie... put them under the same regulations as investment advisory firms

3) ALL short positions should be transparently reported. It can be done on a two month lag or after positions are closed. We don't need to know AS they are doing it, but we should have knowledge of the transactions so that the SEC has a clearer picture of who was short so that they can check to see if they were naked or not.

4) The derivatives market certainly needs to be cleaned up. No more of this off the books crap. Everything should be on the books and transparent in their quarterly/annual reporting.

5) The 'advanced warning system' is nothing more than political bullshit. It will be a bunch of political appointees and insiders. Similar to the report by East Anglia stating that their internal audit 'shows everything is a ok'. We would likely pay for more of that kind of crap. Just look to Freddie and Fannie. When asked if their increasing levels of risk taking posed a problem... what did Barney Frank state? You would get the same level of crap here. Instead of having a committee... just put the rules back in place that prevent a lot of this shit from occurring.

6) For the mortgage market.... simple rule: If you qualify for a 30 yr fixed... you can get the loan on the property you want, provided you supply the income and asset verification necessary and at least 20% down. If you qualify for the 30 yr fixed, then you can have the option of taking an ARM if you wish.

7) Put the uptick rule back in place.

I know you likely agree with most of the above, just expanding a bit on your post.
 
Anybody with a brain would freak. Republitools are voting no just to stomp their feet like the little wide stance tools they are.
 
Superfreak said:
I know you likely agree with most of the above, just expanding a bit on your post.
Click to expand...

I do agree, I just dont think there is enough negative within the bill to go so far as filibustering or voting against it. Why not vote for this bill then add in the provisions you outlined in an amendment to the bill.
 
Chapdog said:
I do agree, I just dont think there is enough negative within the bill to go so far as filibustering or voting against it. Why not vote for this bill then add in the provisions you outlined in an amendment to the bill.
Click to expand...

1) I don't like providing the Fed Reserve any more 'authority'. I think they routinely screw up that which they already have authority over consistently enough to justify not providing them any more power.

2) I think the 'advance warning group' is a horrid idea that will only lead to more corruption within the financial sector.

3) I don't believe limiting the 'size' of a company is the issue. It is limiting how intertwined they are that is the issue. If you want to end the 'too big to fail'... eliminate the portion that causes the hardship of the 'fail'.... ie... keep retail bank accounts in separate institutions. Obviously we do need regulations for transparency on derivatives and other 'special investment vehicles' they may create.

4) Bottom line... in my opinion, it is moronic to try and recreate the wheel. Glass Steagall served its purpose for over 6 decades. Put it back in place. Then add regulations as I mentioned before.
 
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