How Wall Street, Congress and President Obama Killed Financial Reform

Financial Reform“It’s bad enough that the banks strangled the Dodd-Frank law. Even worse is the way they did it – with a big assist from Congress and the White House.” Another must read from Matt Taibbi in Rolling Stone:

Two years ago, when he signed the Dodd-Frank Wall Street Reform and Consumer Protection Act, President Barack Obama bragged that he’d dealt a crushing blow to the extravagant financial corruption that had caused the global economic crash in 2008. “These reforms represent the strongest consumer financial protections in history,” the president told an adoring crowd in downtown D.C. on July 21st, 2010. “In history.”

This was supposed to be the big one. At 2,300 pages, the new law ostensibly rewrote the rules for Wall Street. It was going to put an end to predatory lending in the mortgage markets, crack down on hidden fees and penalties in credit contracts, and create a powerful new Consumer Financial Protection Bureau to safeguard ordinary consumers. Big banks would be banned from gambling with taxpayer money, and a new set of rules would limit speculators from making the kind of crazy-ass bets that cause wild spikes in the price of food and energy. There would be no more AIGs, and the world would never again face a financial apocalypse when a bank like Lehman Brothers went bankrupt.

Most importantly, even if any of that fiendish crap ever did happen again, Dodd-Frank guaranteed we wouldn’t be expected to pay for it. “The American people will never again be asked to foot the bill for Wall Street’s mistakes,” Obama promised. “There will be no more taxpayer-funded bailouts. Period.”

Read more: Rolling Stone

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  • Mrtchops

    sadly, nothing surprising here..
    in both the U.S. and Europe, banks, hedge funds and all other speculative financial enitities can well and truly say: all your base are belong to us
    it doesn’t matter how you vote or how many millions protest. Democracy may not be quite “dead”, but it has stage 4 cancer and its family is sobbing by the bedside

  • rtb61

    Uncle Tom Obama, don’t blame me, the Republicans made me do it. That is going to pretty much be all that’s remembered of Barack Obama’s single term of Presidency. One great be slimly deceiving betrayer promising hope and change and delivery nothing but trapped in despair.
    Darth Cheney and the Shrub, all dressed in one suit and dyed a different shade of Republican Red.

  • Irish Potato Gun

     Well when you hire the lawyer of those same financial institutions to head your Justice Department(Eric Holder), can you really be surprised that he doesn’t want to send to his clients to jail like the deserve.  Just a little conflict on interest going on there, bordering on Treason.  Need to hang all these true criminals with hemp rope.

  • http://twitter.com/anarcho anarcho

    The usual dribble about how something transpired totally misses the point that this is how the system has always functioned,  from one group of elites to the next.  The only way to stop it is to cease following their predetermined plans for you’re demise –

    WHICH PLAN ARE YOU GOING TO FOLLOW?