Senate Passes Wall Street Permanent Bailout Bill

Senate Passes Wall Street Permanent Bailout Bill, It’s a Job Killer!
April 21, 2010

The Senate passes the Wall Street Reform Bill (S. 3217) by a 59-39 vote, if it passes the House it will kill jobs by making it difficult for small businesses to succeed and it will give permanent and unlimited bailout authority for the big banks on Wall Street. It would also do nothing to solve problems in the financial system and won’t prevent the next financial crisis.

Republican Senator David Vitter: “Congressional Democrats and the Obama Administration want to create a permanent bailout mechanism all while spouting their rhetoric of getting tough on Wall Street, but if you look at who is already lining up to support their ‘reform’ measure it’s a who’s who of the big banks that have already received the taxpayer bailout the first time.” Democrat Congressman Brad Sherman: “There are serious problems with the Dodd bill. The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for.”

This bill would also break the back of small business by having them register with the SEC to only wait 120 days for the SEC to review their filing. A second provision in the bill raises the wealth requirements for venture capitalists that want to invest in startups – if the bill passes, investors would need assets of more than $2.3 million (up from $1 million) or income of more than $450,000 (up from $250,000). The third restriction removes the federal pre-emption allowing angel and venture financing in the United States to follow federal regulations, rather than face different rules between states.” There’s no doubt about it that the provisions in the bill would absolutely chill investing and small business which is the backbone of our economy. [Source]

The bill doesn’t include the Volcker Rule (it wasn’t even debated), doesn’t break up or even substantially rein in the too big to fails, and doesn’t force transparency in the derivatives market.

Senator Feingold said:

    The bill does not eliminate the risk to our economy posed by “too big to fail” financial firms, nor does it restore the proven safeguards established after the Great Depression, which separated Main Street banks from big Wall Street firms and are essential to preventing another economic meltdown. The recent financial crisis triggered the nation’s worst recession since the Great Depression. The bill should have included reforms to prevent another such crisis. Regrettably, it did not.

Senator Cantwell agreed, saying:

    While this bill takes much needed steps to help prevent a crisis of this magnitude from ever happening again, it fails to close the very same loopholes in derivatives trading that led to the biggest economic implosion since the Great Depression…. Throughout this debate I have fought hard against efforts to weaken this legislation as well as to pass language to strengthen it further. But the fact of the matter is, without key reforms in derivatives trading, this bill does not safeguard America’s economy from a repeat of this crisis.

    It sets up a process for responding the next time we have a financial crisis, but it doesn’t prevent this kind of thing from ever happening again. We have to stop these kinds of dangerous activities. We need stronger bans on banks gambling with depositors’ money. We need bright lines – like Glass-Steagall – that separate risky activities from the traditional banking system. We need to refocus our financial system away from synthetic bets and get more capital into the hands of job creators and Main Street businesses. There are good, strong provisions in this bill, and I’m proud of the work we did to get them in there, but I fear that without closing the loopholes primarily responsible for this economic meltdown, we are missing the entire heart of the matter.

Nouriel Roubini said the bill is “cosmetic”, and won’t stop the next crisis. [Source]


13 Comments so far
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Look. Whether I invest in a startup or not is my first amendment right. The supreme court made clear in the 1990s that the expenditures of one’s money is expression under the First Amendment. Any restriction posed by the SEC will fail against a First Amendment challenge. What I find completely amusing is we seem to be returning to a governmental system that our ancestors fought against in the 18th Century. Quite frankly the Congress is abdicating its responsibility for taxation by allowing a private entity, the Federal Reserve to control the financail consumer protection agency and to decide who gets money and who doesn’t (a tax). In short this is nothing more than taxation without representation. This is clearly an unconstitutional granted of Congressional authority to a private entity. Remember, in the 18th Century our founding fathers were forced to war against its lawful government, because the lawful government was forced by the British banks to oppress us. The more things change the more they stay the same. If history is any guide . . . this whole mess will cure itself. I just hope that it won’t end in bloodshed, again.

Comment by Kenneth Brooks

It’s way past time for the states to cut the cord between themselves and this fascist mafia in DC. Here are some suggestions:

Immediately pass legislation abolishing all elections for federal office and rendering all pols from their state currently in DC as unemployed, rendering all federal laws unenforceable within their borders, and providing the incarceration of any federal agents attempting to enforce said laws; shutting down all federal agencies within their borders; recall of all senatelizards and so-called reps in DC, effectively shutting down the criminal syndicate completely; providing for every one of them who voted to fund these wars of genocide to be tried for crimes against humanity; confiscating all assets of same to compensate, as far as possible, the victims of these slimy thugs; etc., etc., ad nauseam. And, of course, bearing in mind that the CONstitution isn’t legally binding on anybody, and never has been.

You get the picture. Either the states do these or similar things, and do them g**damned quick, or this country will be run off the cliff by these crapwweasels and their Zionist/corporate accomplices.

Comment by Big M

P.S.: If anybody wants to believe in the willful delusion that slapping the word constitution on some pieces of paper that nobody ever signed constitutes some “supreme law of the land,” then take a look at the part that says that any bill for the purpose of raising revenue has to originate in the House of Representatives. Which means that the previous bailout bill was obviously completely illegal. So either way, the people doing this are criminals, and deserve to treated as such. What would you do if your next-door neighbor decided that they had the right to make you fund their health insurance policy, hmm?

Either you take the mafia out, or wait to be skinned and chipped.

Comment by Big M

The Sub-prime mortgage scam crashed the real estate market and directly and indirectly destroyed millions of Americans financially. Millions more Americans now face the prospect of their own economic collapse. Meanwhile, no CEOs or top executives of financial institutions that participated in promoting, writing; and selling overvalued Sub-prime mortgages to investors, has been sent to prison.

The Recklessness of banks if unabated, could not only cause a long-term collapse of the U.S. economy, but also result in marshal law or ultimately fascism being imposed on Americans to maintain order. When the economy collapsed in the 1930’s, 90% of Americans lived in rural farming communities where food could be grown at home or purchased cheaply. Homes were not heavily mortgaged. Since the depression, 90% of Citizens live in metropolitan communities. Now envision what might happen in 2012 for example, if millions of LA residents after an economic collapse could not pay their rent, mortgage or buy food. The U.S. would have to send troops into large cities to keep order, militarize civilian police and establish tent-cities for the unruly and homeless. Constitutional Protections could be terminated; most retirement accounts would be worthless; little government money would be available for Social Security, Medicaid, and Medicare. It is important that banks and other financial institutions not use government and depositors’ money in a manner tantamount to betting at a casino.

Comment by Rwolf

[…] Senate Passes Wall Street Permanent Bailout Bill, It’s a Job Killer! […]

Pingback by The Survivalist Forum » Blog Archive » Senate Passes Wall Street Permanent Bailout Bill, It’s a Job Killer!

Don’t worry about jobs, as soon as they get WW3 going full bore, all you unemployed suckers can get a job in the military stopping bullets.

Comment by j r

No question Americans have lost complete control of their ‘Democacy’. The Wealthy Old White Boys clearly have taken ABSOLUTE control through their ‘Bought’ Congress as 315 Million citizens have stood by doing NOTHING!

After 221 years, America has finally DIED at the hands of its willfully stupid WHITE citizenry!
This legislation proves it.

Comment by Joseph Conrad

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