Obama's proposed financial overhaul takes a step forward

[SpartanDem]

Source: LA Times

The Obama administration's overhaul of financial regulations took a big step forward today as a key House committee approved legislation that would give federal officials broad new powers to downsize and dismantle large financial firms whose failure would seriously damage the economy.

The House Financial Services Committee voted 31-27 to pass the expansion of the government's ability to deal with teetering financial giants -- authority that was limited when Lehman Bros. and American International Group Inc. neared bankruptcy last year.

As part of the legislation, government regulators would be able to step in when a huge firm is on the verge of collapse and take it apart in an orderly way to avoid market panic. Regulators can do that now with banks but not with more complex financial institutions. Financial firms would be required to pay into a fund to cover government costs of such takeovers.
{snip}
The leislation is the final major piece of a package of reforms that the full House could vote on as early as next week. Other components of the regulatory overhaul include the creation of a federal agency to protect consumers in the financial marketplace and increased oversight of complex derivatives.


Read more: http://www.latimes.com/business/la-fi-financial-regs3-2009dec03,0,3243547.story

[tridim]

1. Am I allowed to support this, or does it make me an Obama worshiper?

[8 track mind]

5. ...

:yourock:

[27inCali]

6. you and I can both put on the funny little hats

and prostrate ourselves together, haha.

this is really good news, which will be ignored, because good news does not lend itself to miserable self-righteousness.

[Union Yes]

2. On a quiet night, if we listen we can occasionally hear Dems acting like Dems. Rare but it happens.

[dreamnightwind]

3. Sweet

"But the committee's bill goes beyond the powers requested by the Obama administration. It grants regulators additional power to preemptively break up large financial institutions that pose a "grave threat to the financial stability or economy of the United States."

The legislation also would impose stricter congressional oversight on the Federal Reserve, authorizing the Government Accountability Office to conduct detailed audits on a variety of the central bank's activities."

Sound like good news. I hope the good stuff isn't watered down too much through the legislative process, and I hope the administration doesn't get in the way of the preemptive break-up capabilities.

[BR_Parkway]

7. Wow, pre-emptive strikes - bet Bush never thought that policy would

be able to be used against his cronies.

Glad to see it happening, but it's well overdue

[bergie321]

4. I will believe it

When the giant banks are broken apart.

[Kaleko]

8. Good.