Thursday, July 1, 2010

House Passes 'Financial Overhaul' bill, Senate Votes in two weeks

The House passed the 'Financial Overhaul' bill, but the Senate gets to vote in two weeks. In short, it looks like a dud bill, like a bill that makes no sense, ala 'Health Reform'. Its going to create another bureaucracy to manage systemic risk, its closing the Office of Thrift Supervision, which regulates thrift/credit unions, and the Comptroller of the Currency will handle banks AND credit unions/thrifts. Also in the bill is a funeral plan, which will eliminate 'bailouts' and will liquidate firms that go under or cannot comply with new regulations. One item that is of interest to me is that the FDIC Insurance will stay at $250,000, which is a good thing; You will see more deposits in the banks. Hedge funds worth more than $150 Billion will have to register with the SEC. Investment advisors managing more than $100 Million will have to be registered as well.

It seems ok, I dont have any problems with keeping the high deposit insurance, I don't have a problem with hedge funds being registered, although there will be ways around that, and I have a problem with closing the OTC. The Democrats are failing in keeping a negative connection with 'Wall Street' and Republicans, and I think thats the main reason why they are pushing it and touting it. I think someone is in for a big surprise in November...

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