This page has been archived and commenting is disabled.
For All of You Guys Who Thought Goldman Was Invincible and the Administration Wouldn't Touch Them...
I have been advocating this limitation for some time.
- Banks' Size, Trading Would Be Limited in Obama Plan to Reduce
- Risk-Taking •Obama Says No Bank Should Have Proprietary Trading: Text of Announcement
- Obama Proposes New Curbs On Banks' Size, Risk-Taking
For
those that listen to CNBC pundits knocking the separation of deposit
taking entities from trading risk assuming entities, here are some
common sense rebuttals.
This proposal would not have stopped the AIG failure
No,
it would not have. It would have prevented deposit taking institutions
such as Citibank and JP Morgan from trading on a speculative basis with
AIG though. Theoretically, it would have allowed those that would have
got jerked on the AIG to have sunk or swam on their own accord. We
never had to stop AIG, we had to stop the repercussions of what an AIG
would have caused.
This proposal would harm lending and jobs. This is a bad time.
I
don't see how. The banks aren't lending now, and they have the capital.
The reason why they aren't lending is #@%$% balance sheets and credit
impaired assets.
It's unfair!
What
the hell is this? Kindergarten! You're right, it's not fair. The banks
have received more than their fair share of assistance. See 10 Ways to say No, the Banks Have Not Paid Back Their Bailout from the Taxpayer!
I am all for limiting the size and risk federally insured institutions
can take. You don't have to face limitations, just leave the insurance
program!
The big foreign banks will just come and take all of the American business if "Glass-Steagal" lite is enacted.
Bullshit!
Wall Street has been the leading financial center of the world for
many, many decades. We just repealed Glass Steagal in the Clinton
administration. Are we suffering from short-term memory-itis?
Ben Bernanke might have outperformed Wall Street on the AIG bailout. The Maiden Lane protfolio has thrown off over $6 billion of cash plus capital appreciation...
This is slightly off topic, but I must correct another CNBCism. Are you guys daft? Let's get this straight. I buy a portolio in distress and back stop the seller for $181 billion. I then take another $350 billion to artificially inflate the bid under these assets. I then sit back as some obvious "non-investor" types claim I am this expert trader that outperformed the other traders that I bailed out and gave an implicit taxpayer put option to. Can you guys even calculate that ROI?
I've
been calling for reducing risk and breaking up the big banks for some
time. It is good to see that politicos read my work :-)
-
- The Fed Believes Secrecy is in Our Best Interests. Here are Some of the Secrets
- Why Doesn't the Media Take a Truly Independent, Unbiased Look at the Big Banks in the US?
- As the markets climb on top of one big, incestuous pool of concentrated risk...
- Any objective review shows that the big banks are simply too big for the safety of this country
- The ARE trying to kick the bad mortgages down the road, here's proof!
- Why hasn't anybody questioned those rosy stress test results now that the facts have played out?
- If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?
- If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?: Pt 2 - JP Morgan
- If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?: Pt 3 - BAC (the bank
- If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It? Pt 4 - Wells Fargo
- If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It? Pt 5 - PNC Bank
- The Next Step in the Bank Implosion Cycle???
- A Must Read: An Independent Look into JP Morgan. This contains the "public preview" document (
JPM Public Excerpt of Forensic Analysis Subscription 2009-09-18 00:56:22 488.64 Kb), which is free to download.
- advertisements -
We'll see how cheap this talk is. It was interesting that the President had Frank and Dodd up there with him and Volcker, while Maria Cantwell was on cnbc smacking dennis kneal down. She is trying to restore Glass-Steagall and shed some light on dark trading. That is where the rubber will hit the road.Hopefully she will be crafting the legislation rather than dodd.
It was interesting that geithner was up behind the President and summers was not to be seen. Since he was the one who threw Volcker under the bus a few months ago and the President is calling the proposal the 'Volcker Rule' it looks like the President is putting his counsel up for grabs.
The President won't cut timmy loose, I think he has some kind of connection with him.
If anyone is canned, it will be larry, and congress may pull the plug on ben.
Saw that. Cantwell was talking back to Kneale et al like the stupid f-ing idiots they were. Fascinating, since as they went back and forth and she blasted them you could tell their producer was talking in their ear: "Ask her about the deposits, Dennis!" The CNBC idiots made no sense and were trying desperately to reel her in. Cantwell 10; CNBC: - 58.
The best thing Obama could do is fire Timmy G and Summer before SOTU speech and appoint Volcker or something similar. I actually think Tim would be a good general for any war Obama specifically told him to fight, I think Tim is capable of changing course, but just on appearances he should go politically and Obama needs his Treasury lead to have a vision, a war plan.
If Obama has figured he has more to gain by fighting Wall Street than going with them, then do it, go all in, even slight reform will get Wall Street venom, you might as well go all the way for anythign populits that polls at 70 percent against Wall Street.
Dodd and Frank are village idiots... Wall Street's village idiots.
Fat Larry was in the White House kitchen scarfing a meat ball sandwich...
Timmay G is a stooge... a very useful stooge to keep the heat off of every one else. We will see if he turns into a fall guy. Depends on whether Bullshit Barry can get by with more lame lip service like today.
Yeah Reggie sorry to say - this is just the talking
of today. It will be forgotten just as easily as all
the other forgotten talking.
Hi Bugs,
I am 50/50 on this. I think Mass. has taught this circus that people "don't forget". Yeah, sure they do when all is well, people have jobs, the house goes up in value, but voters have elephant like memories when mom and dad are unemployed, the house is worth 30% less, the retirement is fucked, and Obama's wife is blithely buying $500 Vuitton tennis shoes while Pelosi stocks her office with thousands of dollars of flowers cuz they are pretty. Add banker bonuses, shady deals in Congress and "hope and Change" being flim flam..suddenly people remember, well everything.
Have you ever forgotten about a person who double crossed you? I doubt it.
Others won't either.
Cindy forgive me for not being clearer.
I wasn't talking about the peoples. How can
they forget when they are wearing coats inside
their homes and struggling to reach the end of
each month.
I was talking about BHO. He has taken so many
positions we call him "the formless". Today's
posturing talk will be forgotten by him when the
clock strikes midnight.
And here's cnbc's poll on whether the limits should be imposed. Right now, the vote is split about evenly:
http://www.cnbc.com/id/34973623
Right on, Reggie.
RM NAILS IT !!!!!!!!!!
KEEP UP THE FANTASTIC WORK !!!!!!!!
NEXT :
TAX STRUCTURE CHANGE
Why ????
Valuations replacement.....
Replacing lost manufacturing businesses....
A sole consumption tax only....and the elimination
of both individual and corporate taxes will
send the US to the next Golden Age....
This is next....
"RM NAILS IT !!!!!!!!!!"
Reggie is a sledge hammer that just keeps on giving. Very nice summation, young man.
But let us all keep in mind the following modus operandi of every one's favorite political messiah:
1. Political Messiah announces populace sounding bank reform plan.
2. Political Messiah hands the plan off to his dysfunctional dick-weed Wall Street patsy of a Treasury Secretary.
3. Dysfunctional dick-weed Treasury Secretary hands said plan to his Uncle Jaime and Aunt Lloyd for corrections.
4. Dysfunctional dick-weed Treasury Secretary hands the plan to Congress.
5. Barney "The Bankers Bitch" Frank and C. Dodd (Dodd, read: too dumb to figure out which way to turn a door knob) hand the plan to Wall Street lobbyists for further shredding.
6. The turd reffered to as "REFORM" comes out of Congress' anus nothing like the claim the Political Messiah announced in the first place.
7. Political Messiah and Congressional Turds claim victory for the American public.
8. "Victory for the American public" = Sodomized.
9. Bill does nothing or makes the situation worse.
Conclusion: Wall Street continues Business as Usual untouched...
We have seen it all before. Obama is BIG BULLSHIT... all talk and no action...all hat and no cattle... quaint speeches, more war and torture. George Bush... give the new guy your dunce cap.
PS: Tyler... thanks for the much more manageable CAPTCHA: one times ___ equals 38... the prime number theory ones were giving me headaches...
Problem Is nails it. Sad but true.
Nailed it.
That was just great... and so true... loved it!
Isn't Obama dreamy? Ooooooooo....
Dream on RM.
VAT Anon 200969? if you think the feds would eliminate ANY tax you need to wake up from that dream.
Gitmo closed yet?
Troops home?
Nothin but horseshit comes out of Bama's mouth
Amen!
He still sells hope, unfortunately there are not many buyers left.
The problem is what's next? Bush Part III?!?!?!? God help humanity!!!
Leo, not to be rude, but we are already at Bush Part III, granted Obama's a little slow on the actual execution of things unlike Bush, but he's a quick learner.
Apres "W", le déluge!!!!
Sure, but the whole game is to go after the last marginal buyer, right? Then you shut down the casino and open up a pawn shop.
Reggie, our Mugabe Jr. hates banks. I don't know how much you know about commies, but banks for commies are like red shirts for bulls. GS&Co. are not the first to make this mistake.
If you had to choose between making a deal with the devil or with a commie go with the devil. You are going to be much better off. Just take my word on this.
CCP
The devil you know is the best devil of them all. You are a find proponent of legalized insider trading I see.
Big Paul V got Obama's ear. The question is whether this is just political jockeying due to the fallout in Mass. or whether this is going to be the beginning of meaningful financial reforms. Public cage rattling and privately they might be telling the bankers "don't worry, nothing will come of this". An Orwellian master coup!
Leo, while I am still holding you to your regrettable prediction about a boom in US employment any minute - as a gentleman, I uphold your right to voice freely completely erroneous opinions, and enjoy your posts - I will agree with you that this is mere poltical jockeying, and nothing meaningful will occur. However, Paul V is in a room somewhere wearing some Depends in need of changing, drool bucket attached, and I assure you that no one even remotely connected with the White House is paying attention to anything he says. Like I said elsewhere, the big boys gave permission for this public browbeating today in an effort to cool the heat of the Bernanke confirmation and to destabilize the slightest possibility that real reform might gain a foothold, and had already shorted their own stock to profit from the drubbing. Count on it.
Leo may not know Gold but he sure does know Obama.
Why would any politician back any of Obama's initiatives at this point? Unless you want to commit political suicide. Everything he has set out to do he has failed miserably at. No one is going to want to attach their name to any of his pet projects going forward. He turned into Jimmy Carter faster than Jimmy Carter did.
You forget he was instrumental in getting rid of the Bush regime. The other things he has taken on are rather big and any sane person didn't expect immediate results. I for one didn't enjoy paying successive 18% premium increases under the Bush regime. Funny you neo-cons don't mind paying 50% in taxes so long as you call 34% of it income tax and 16% of it health care premiums.
Of course it is political jockeying, since all D.C. ever does is political jockeying. But they have to follow the votes and the money. So vote, and move your money out of the Too Big To Fail banks. In any contest, the simplest strategy is usually the most effective. Vote, and move your money out.
You buying the dip, Leo, or have you
come to your senses?
Nothing - and I do mean NOTHING - has changed. Dips are to be bought if you want to make money in 2010, especially dips in the solar sector.
You think? tell that to the VC/PE community that has
been an investor in this space for sometime with squat
to show for it. Unless of course your investment
horizon is a long one.
You think? tell that to the VC/PE community that has
been an investor in this space for sometime with squat
to show for it. Unless of course your investment
horizon is a long one.
oh here we go with the solar again.
+1
Gee, I wonder.
+1 on the article and these comments. I notice that Volker is right in the background of the frontpage picture of Obama making these announcements. And it seems that the PPT has gone on strike the past couple of days.
I agree. No stick save in the last 45 minutes of trading? WTF???
It's possible the stick save was attempted but was overwhelmed by massive distribution by those who see the writing on the wall.
"The question is whether this is just political jockeying due to the fallout in Mass...."
Whether its just political jockeying? Come on, Leo. This and the bank tax gimmick are of a piece. A day late and a dollar short, I'd say. This little snake allowed this situaton to fester for over a year, had Volcker available the whole time, and was absolutely content to do nothing about it. Volcker may deserve some credit, but Obama? Would you pay a commission to the guy in shipping when the salesman's been making all the cold calls? When Obama can honestly own up to why it is he called a man in now that's he's treated like garbage up until now, then I'll consider applause.
Absolutely, the whole charade speaks for itself. Far as I'm concerned, Obama was effectively the architect of the whole shitnami that he's now so valiantly and decisively posturing to save us from. The chicken's left the coop, baby. Anybody else think about the billions highly placed insiders have made off the federally levitated market via legal selling of their holdings, industry-wide?
Many days late and many, many more dollars short, Barry.
Oh, yes, indeed. And he attempts to shield himself from entirely valid criticism by seeking refuge in the dodge, we-were-unable-to-get-to-these-deeper-public-concerns-in-the-first-year-because-we-were-so-busy. That, purely and simply, is moral cowardice. Here's Marshall Auerbach with some interesting thoughts in that connection:
http://www.counterpunch.org/auerback01212010.html
Nice piece. Even the reviews on HuffPo are mixed . . . and they will ensure he's a deadman politically without full follow-through on his oratory (watch and see.)
Its a panic move.
seriously, Obama was so far removed that reality did not hit him until Mass., went and made him look like a huge ass.
And thats one thing he won't tolerate. Prepare for bridges to be burned in the name of pride and saving his reputation. (He doesnt keep all those magazines that he is on the cover on, for nothing.
There isn't one of these whores that isn't first the most self-absorbed narcissist. And there isn't one of them that doesn't deserve a peoples' justice. Today its the shuffling brought about by a reaction to a public humiliation. Tomorrow it may be an orange suit and trial in Yankee Stadium.
Sigh,
This is what neither the Democrats nor the Republicans understand. Brown's victory in Mass was NOT an affirmation of the Republican viewpoint, it was a denial of the Democrat viewpoint.
There is an extremely subtle, but huge, difference between those two statements. And I dont think that most of the politicians out there understand it.
Obama may understand it, his initial actions at least point that he understands it in some part of his brain, however, if he does not follow through with REAL reform on this November is going to be VERY ugly, for BOTH parties.
The timing of the announcement is interesting to say the least. Two days after Obama loses his supermajority in the Senate.
Obama is ultimately a huge narcissist. There is no way he can do the State of the Union address and not really have anything to say. Being pretty on camera is difficult to do with nothing to say.
Atleast now he can say "See America" I was thinking about ya all along? Do ya love me now?"
We have to be "hopeful" but diligent. Everyone here knows these people can't be trusted to do the correct thing until they exhauseted every option to grossly enrich themselves.
As long as we support alternative press, have dialogues with our community and keep the light on the political termites, there is "hope".
(My apologies to our resident anarchists)