THE DOT - if this turns orange or red be alert

Monday, March 15, 2010

Brainstorming Monday - part 1

1. As expected the nomination of Yellen shows how unprudently the Obama administration works for Wallstreet rather than Mainstreet as Ms. Yellen is a zero interest dove.

Yellen, Raskin, Diamond May Help Bernanke Exit Stimulus (Update1)

By Steve Matthews

March 13 (Bloomberg) -- President Barack Obama’s likely nomination of three Federal Reserve governors will help Chairman Ben S. Bernanke plan an exit from record monetary stimulus and strengthen banking supervision and consumer protection.

Janet Yellen, an economist who heads the Fed Bank of San Francisco, is Obama’s choice for central bank vice chairman in Washington. The administration has also approached Sarah Bloom Raskin, Maryland’s commissioner of financial regulation, and Peter Diamond, an economics professor at the Massachusetts Institute of Technology, to fill two vacancies on the Board of Governors.

2. The puppet Dodd approach to give even more power to the FED shows how rotten DC is as this are pure camouflage actions to show public that DC turns tough on Wallstreet but actually as we saw with Lehman and AIG what counts is what is done and neither the FED nor the SEC regulates banks to any degree they rather support their scams and support their legal robbery schemes.

Dodd's New Plan for Finance Rules Aims to Give More Muscle to Fed

Bill's Highlights

Dodd's proposal touches on several areas. Key points:

  • Consumers: A consumer-protection division would be created within the Federal Reserve, with the ability to write new rules governing the way companies offer financial products such as mortgages and credit cards. It would have authority over any bank with more than $10 billion of assets, and certain nonbank lenders.
  • Banks: The Fed would oversee bank holding companies with more than $50 billion of assets. Regulators would have the discretion to force banks to reduce their risk or halt certain speculative trading practices.
  • Failing companies: The government would be able to seize and break up large failing financial companies. Big companies would have to pay into a $50 billion fund to finance the dissolution of a failing firm.
  • Systemic risk: A new council of regulators would be created to monitor broader risks to the economy. The council could strongly urge individual agencies to take specific actions to curb risk.
  • Corporate governance: The Securities and Exchange Commission would have authority to write rules giving proxy access to shareholders who own a certain amount of stock. Shareholders would have a nonbinding vote on compensation packages for top executives.
  • Hedge funds: Large funds would have to register with the government.

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