Obama's 5 Point Plan for Wall Street Reform (plus excerpts)

[Clio the Leo]

An overview of what the President will likely propose during his speech this morning (11:55am Eastern) ...

... per the White House:

1) A system to ensure that the financial system, the broader economy, and the American taxpayers are protected in the event that a large firm begins to fail.

2) The Volcker Rule, which sets limits on the size of banks and the risks that banking institutions can take.

3) Reforms that will bring new transparency to many financial markets, and bring derivatives and other complicated financial instruments out of the dark.

4) Strong consumer financial protections that will give American consumers more protection and power in our financial system.

5) Say-on-pay reforms that would give investors and pension holders a stronger role in determining who manages the companies in which they’ve placed their savings.

http://www.politico.com/playbook/

Excerpts...

President Obama plans to say in his speech at Cooper Union Thursday that the financial crisis stemmed from a "failure of responsibility ... that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression."

"I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings. But a free market was never meant to be a free license to take whatever you can get, however you can get it," Obama will say. "Some on Wall Street forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement. What happens here has real consequences across our country."

"One of the most significant contributors to this recession was a financial crisis as dire as any we've known in generations. And that crisis was born of a failure of responsibility - from Wall Street to Washington - that brought down many of the world's largest financial firms and nearly dragged our economy into a second Great Depression.

"It was that failure of responsibility that I spoke about when I came to New York more than two years ago - before the worst of the crisis had unfolded. I take no satisfaction in noting that my comments have largely been borne out by the events that followed. But I repeat what I said then because it is essential that we learn the lessons of this crisis, so we don't doom ourselves to repeat it. And make no mistake, that is exactly what will happen if we allow this moment to pass - an outcome that is unacceptable to me and to the American people.

"As I said two years ago on this stage, I believe in the power of the free market. I believe in a strong financial sector that helps people to raise capital and get loans and invest their savings. But a free market was never meant to be a free license to take whatever you can get, however you can get it. That is what happened too often in the years leading up to the crisis. Some on Wall Street forgot that behind every dollar traded or leveraged, there is family looking to buy a house, pay for an education, open a business, or save for retirement. What happens here has real consequences across our country."

...

"A comprehensive plan to achieve these reforms has passed the House of Representatives. A Senate version is currently being debated, drawing on the ideas of Democrats and Republicans. Both bills represent significant improvement on the flawed rules we have in place today, despite the furious efforts of industry lobbyists to shape them to their special interests. I am sure that many of those lobbyists work for some of you. But I am here today because I want to urge you to join us, instead of fighting us in this effort. I am here because I believe that these reforms are, in the end, not only in the best interest of our country, but in the best interest of our financial sector. And I am here to explain what reform will look like, and why it matters."

http://www.politico.com/politico44/wbarchive/whiteboard04222010.html

ETA: Sr WH Advisor Valerie Jarrett just said on CNN, the FinReg bill "gives us authority to dismantle banks that get too large."
http://twitter.com/markknoller/status/12636218701

[T Wolf]

1. The financial criminal organizations will not be reined in by tweaking about the edges of the

swamp of their playground. The system is so complex that "regulating" will only put more lawyers to work and create more bonuses for the cretins who dream up the new Ponzi schemes.

Until the entire system is gutted and lending and investing is restricted to ONLY direct support for "worthwhile" projects instead of the bullshit (hedges, derivatives, etc.) masquerading as "investing", they will continue to rape we-the-people for our last dollar. I doubt this can be done because the forces on the Dark Side are too powerful.

Jut like the health insurer bailout, there will be much crowing about whatever piece of shit they pass, but the actual benefit to the non-rich will be minimal, if that.

[Kdillard]

2. k and r.

[gateley]

3. K&R. nt

[alcibiades_mystery]

4. "Blah blah blah...nothing will change! Nothing's enough! Blah blah blah"

"I'd rather see nothing than this giveaway to the banksters!"

"Blah blah blah!"

"Tear down the banks!"

"Blah blah blah."

"Not satisfied! Corporate flunky!"

"Blah blah blah!"

That about cover it?

[yowzayowzayowza]

5. Pertnear. n/t

[TwilightGardener]

6. You have it covered.