Banks Draw Major Fines on Eve of
Shelby Markup
It is somehow fitting, possibly
ironic, and maybe choreographed--although I don't think the Obama Admin is that
smart--that the @$5.7 Billion in fines laid on five behemoth banks, today,
after guilty pleas of rate fixing occurred on the eve of Senator Dick Shelby's (R-Ala.)
markup, scheduled for Thursday, legislation to reduce what he sees as the regulatory burden on large financial institutions.
Separately Shelby's proposals also paves the way for those same banks
and their peers--down the road--to take over the nation's mortgage finance
system with regulatory changes to Fannie Mae and Freddie Mac's oversight.
Bank fines
Stealth GSE reform
Maybe someone on the Senate Banking
Committee will put the puzzle pieces together and show why each action is unwise
and fraught with greater problems and that the large banks just are not worthy
managers of both the primary and secondary mortgage markets, which ultimately
they will control if Shelby and his allies prevail.
(Just last week, in unrelated
actions, the Department of Justice fined Nomura
Securities and the Royal Bank of Scotland over $2 Billion for faulty mortgage
backed security sales to Fannie and Freddie. As dozens of major fines and
guilty please over the past five years have shown, aberrant big bank behavior
is constant and multi-faceted.)
What good--except for the banks themselves--can
come from reducing regulatory eyes from behemoth financial institutions with
asset sizes between $51 Billion and $499 Billion, as Shelby proposes?
Answer: No good at all. More
oversight, not less, is needed.
And, in typical fashion, making
major changes to the Fannie and Freddie charters without any working idea of
what should replace them after their disassembly-which is the stated goal of their Senate antagonists--is
irresponsible and paves the way for chaos and inefficiency in the mortgage,
markets, which indirectly control about 20% of our nation's GNP.
OK, the GOP controls both hoses of
Congress, but some voices need to be raised and force the Senate Banking
Committee Republicans to explain the interconnections of their major
legislative objectives in tomorrow's markup.
Those are not ad hoc statutory alterations and the implications
are far reaching and I would argue bad for the American public on both scores..
Maloni, 5-20-2015
6 comments:
Shelby to Dimon: "Can you give me one effing week where you're not getting convicted of fraud for crying out loud? I mean, ... farhging A ... work with me here!"
well if it ain't Jamie getting caught it it will be some else.
Shelby needs Need to cut the funding to the SEC befoe they find any more theives on Wall street
To Matt and Duncan--64% Jamie's JP shareholders--down from @76% last year--just approved Jamie's @$21 Million comp.
If my grandkids decide to deviate from the Maloni honesty path,I want to make sure they become big crooks and thugs because the money is so much better.
Just saw this...poor Richard!
http://www.citizensforethics.org/pages/crew-report-richard-shelby-used-position-to-benefit-family-members
I now have been told the article is from last year but Dick still has about $18 Million, and growing, in his campaign accounts.
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