Friday, September 21, 2012

Dodd-Frank

"The issue:

The 2008 financial crisis roiled the banking system and swamped the global economy, leaving millions of Americans jobless, underemployed or facing foreclosure. In its wake, Congress set out to overhaul how the government oversees Wall Street. The result was a sprawling law, the Dodd-Frank Act, which aims to prevent future crises by giving the government new tools and restricting banks' activities. The law may make future crises less likely, but it increases costs for companies, especially banks, and their customers.

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Where they stand:

The hard-fought law was a big victory for President Barack Obama, and he would defend it. With Obama's backing, government officials who are putting the law into practice are more likely to adopt a tough stance.

Mitt Romney wants to repeal Dodd-Frank and start over, though he would keep a few core elements that the financial industry supports — for example, revised formulas that determine whether banks have enough solid cash to fall back on in bad times. Romney also would make it harder for financial oversight agencies to impose new rules."

I don't care if you're Republican or Democrat, what I do know is if the big banks have no regulation this whole mess will happen again, maybe not the same way, but something similar.  The big banks are only out for the top of the pyramid folks (1%), they are not here to help the small guy, they are not our friends.  If you are falsely lulled into believing otherwise you are fooling yourself.

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