Wall Street 'Reform' in a Nutshell: The Politicians Lied, Media Applauded, We Americans Will Suffer

[Jefferson23]

By Dylan Ratigan, AlterNet
Posted on June 26, 2010, Printed on June 27, 2010


The same Washington spinsters who have driven our country into the ground seemed to be out in full force on Friday, claiming that their latest policy "victory" is the most "sweeping change" of our financial regulatory since the Great Depression.

Actually, it is nothing more than window dressing.

The real sweeping change of our financial system took place over the past 20 years. The irresponsible repeal of Glass-Steagall in 1999. The Commodities and Futures Modernization Act of 2000 by Larry Summers and Bob Rubin -- the one that legalized the most destructive financial instruments of all, derivatives. The leverage exemption at the SEC in 2004, asked for (in person) and received by Hank Paulson and friends.

Of course, there are small victories here -- there is better investor protection and, most importantly, an awakened citizenry.

What's not fixed?

in full: http://www.alternet.org/economy/147339/wall_street_%27reform%27_in_a_nutshell%3A_the_politicians_lied%2C_media_applauded%2C_and_we_americans_will_suffer/

[Jefferson23]

1. JP Morgan Responds To Financial Reform: The Poison Pill Strategy

By Simon Johnson

While the financial reform negotiation process grinds to its meaningless conclusion, the real action lies elsewhere – in Jamie Dimon’s executive suite.

Dimon, the head of JP Morgan Chase, is apparently seeking to (a) become more global, (b) move further into emerging markets, and (c) become more like Citigroup.

This is terrific corporate strategy – and very dangerous for the rest of us.
Jamie Dimon clearly wants to become too big to fail, too interconnected to fail, and – above all – too global to fail.

He knows that the reform package will, among other (very small) things, create a resolution authority that will give the government more power – in principle – vis-à-vis failing financial institutions in the future. This is a central part of Tim Geithner’s vision for financial stability.

But Mr. Dimon also knows – as a board member of the NY Fed and sometime White House/Treasury confidante – that a US resolution authority will do precisely nothing to make it easier to handle the failure of a large global bank, e.g., Citigroup, doing business in over 100 countries.

in full: http://baselinescenario.com/2010/06/26/jp-morgan-responds-to-financial-reform-the-poison-pill-strategy/