Will Montana’s Rep. Steve Daines Vote to Weaken Dodd-Frank?

by jhwygirl

The U.S. House of Representatives is expected to take an upteenth attempt at damaging U.S. economic stability and growth tomorrow with a number of bills coming to floor vote, six of which would once again embrace derivatives as a legitimate stable investment for our financial institutions.

Taxpayers beware. There is nothing prohibiting bailouts.

Passing out of House financial services on Tuesday and coming to a vote tomorrow is the Full Faith and Credit Act coming to a vote will prioritize U.S. debt and interest over the priority of running the government. Things like keeping the lights on, paying soldiers, social security & disability payments. You can see how willing to negotiate the House GOP Republicans are going to be for the upcoming debt ceiling discussion, estimated to come to Washington DC sometimes during that oh-so-pleasant month of August.

Six other bills which also passed out of financial services yesterday will weaken derivatives regulations within Dodd-Frank.

Addendum: Democracy Now reports that only six members of the House financial services committee voted NO to weakening the already
weak Dodd-Frank derivative regulations.

This’ll infuriate people who thought Dodd-Frank was weak to begin with. Pretty sure that both Lizard and JC fall into that category. I know I’m there.

HR992, the Swaps (meaning derivatives) Regulatory Improvement Act, will allow FDIC insured and uninsured foreign banking entities supervised by the Federal Reserve to utilize derivatives.

That’s right – one of the base elementary causes of the 2007 economic crash is being welcomed back for taxpayer insured FDIC banks.

As a bonus, the bill continues the bailout prohibition exemption for these banks. Which means in plainer language that FDIC insured banks can continue to be bailed out. Ahhh, the pleasures of Dodd-Frank.

I’ve seen or heard plenty saying that the Full Faith and Credit act isn’t likely to pass filibuster – but I’ve yet to see or hear the same for the nasty derivative porn. I say it’s amazing but it really isn’t anymore – the crap these electeds get away with. Because truth be told, it rests on us who keep elected these fools. But here we are, an already weak bill being weakened again. Embracing derivatives? Geezus.

What will Daines do? I’ll be calling his D.C. office first thing tomorrow morning (202-225-3211) to let his staff know where I stand – and that I’ll be watching.

  1. mike

    You miss the point….I’ll agree Glass/Steagall was a clusterf…k. Then again slick Willie was on board.and Wall Street these days tend to send dollars to D’s, as they have the White House. Nothing new here.

    If investment banks choose to speculate in derivates its ok as long as it’s not with investor deposits.

    The Dodd /Frank bill does nothing but increase paperwork to thousands of legitimate businesses.

    Look into Fannie and Freddie sister, we are throwing billions at these fiascoes, political agenda, they have zero chance of paying their way.

    AIG played that game but managed to sell enough assets to pay off their loans and tarp and get back to the insurance businesss. Fannie and Freddie not so much. Try again sister..

    • JC

      “Wall Street these days tend to send dollars to D’s”

      No, Wall Street invests in whichever politician that will give them the greatest return.

      “If investment banks choose to speculate in derivates its ok as long as it’s not with investor deposits.”

      And if the speculation takes down the bank, then investor deposits are still safe because my tax dollars back the risk? What a load of crap. More of the publicize the risk, privatize the profit BS that took down Wall Street last time.

      “The Dodd /Frank bill does nothing but increase paperwork to thousands of legitimate businesses.”

      NOthing like a broad swath generalization to know your view of D-F is nothing more than banker protectionism and anti-regulatory ideology. But as long as my tax dollars are backing the risk that investment banks are taking, I don’t give a rats ass how much paperwork the “legitimate businesses” have to do. Actually, I think that any business that preys on taxpayers and depositors is not truly a “legitimate business” even if Wall Street investments (read “payments to politicians”) have provide legal cover for a corrupt system of exploitation.

      “Fannie and Freddie”

      You’re going to go down that red herring road again? Have fun with your ulcer.

  2. Big Swede

    Mike’s right. Overburdening regulations by the originators of the crisis in Fannie/Freddie.

  3. What regulations? Last I heard, the SEC had not completed a single new rule governing hedge funds or private capital firms trading OTC derivatives. Firms over $150 million need to register, big deal! It’s hard to see how unwritten regulations can be “weakened.” Neither the Dodd-Frank bill, nor the SEC, does anything substantial to actually regulate derivitaves in the public interest.

    • Big Swede

      Just think, in a few years the Barney can come out out and admit the mistakes in D and F just like he did in F/M and F/M.


      • JC

        At least Barney Frank has the courage to “come out”. When’s the last time you’ve had the courage to admit you were wrong and that you changed your mind?

    • Dave Budge

      Just curious what you think the hedge fund industry had in the financial crises, Steve? Keep in mind that the total assets under management across 500+ hedge funds is about $2 trillion – just less than Fidelity Investments. I’m not defending them but I’d like to know what you think they’re guilty of.

  4. steve kelly

    Conversation is not possible with a “fart in a skillet.”

  5. Dave Budge

    Dodd-Frank should be drown in the bathtub. It doesn’t stop too-big-to-fail but, rather, makes it the law of the land. The better alternative is the proposed Brown-Vitter legislation. Read this.

    • JC

      It’s nice to see that Sherrod Brown is still fighting. After losing his attempt to inject Brown-Kaufman (limiting TBTF) into Dodd-Frank, I would have though that maybe he’d given up the fight against the banks as too quixotic.

      For what it’s worth, I railed against Jon Tester three years ago for selling his vote on Brown-Kaufman to the mega banks. I think that while some good legislation might get written (I haven’t looked close enough at Brown-Vitter to know if it will really do the job), when it comes to raising campaign funds, all that unity in the 99-0 Senate Resolution vote will disappear as Senators continue to scramble for their war chests.

      In short, as long as Wall Street can still invest as much money in politicians as it wants to get the desired result — tanking Brown-Vitter — nothing will change for the better.

      Oh, and nice to see you drop by once in a while again Dave, now that ECW has browned out. I think that on TBTF, there is a lot of common cause. But my bet is that it’ll get tanked in a quest for campaign cash.

  6. Dave Budge

    Hard to say, JC since the Community Bankers Assoc is behind it. That’s a very powerful lobby in the House – more so than the ABA – and not so shabby in the Senate. But the biggest selling point is that it removes all the crushing lending restrictions for community banks that the “bigs” wrote into Dodd-Frank. Insofar as we look to small business as the engine of job growth it’s going to be hard for both the President and Senate not to have to address the regulatory capture of Dodd-Frank by the top 10.

    BTW, Barry Ritzholtz, the author of that WaPo piece, is a legendary Wall Street insider who is now part of what is labeled Wall Street 2.0. The movement, of which I glad to be a member, is growing fast and is composed of people who all have mega-bank experience and realize how FUBAR the system is now and against the (for lack of a better term) 99%. There’s 1000’s of us and growing fast. So don’t be surprised if this bill passes. There are some big money people who know how main street is getting screwed and they are becoming increasingly vocal.

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