Saturday, October 17, 2009

Congress Gums the Banks to Death

The stench of corruption wafting from the nation’s capitol is a bit thicker today, and an audible sigh of relief could be heard from the country’s banks.

One of the fallouts from the financial meltdown of 2008 was a demand for the creation of a new agency to protect consumers from abuses in the issuing of loans, mortgages and credit cards. With much fanfare, Congress jumped right to it while the banking industry rent its garments and rubbed ashes into its hair.

Not that they had to worry. I mean what king of meaningful reform is a Congress that is little more than a bunch of corporate lackeys going to generate? The only danger the banks face is that they might be gummed to death.

The banks fart and Congress sniffs. According to Friday’s New York Times, the House Financial Services Committee approved an amendment that exempts 8000 of the nation’s 8200 banks from oversight by the new agency. Only the 200 largest banks will be regulated, you know, the ones that hire the high-priced attorneys to fight any move by the new agency.

The committee's rationale is that without the amendment, they would lose the support of corporate Democrats, who make up a majority of the party’s membership. It seems having regulators monitor the smaller banks is “disruptive and adds compliance costs.”

Too “disruptive?” A bunch of financial retards shipwrecked our economy, threw people out of work and out of their homes, and the Democrats are worried about inconveniencing the idiots?

Explain that to someone living in a tent city!

And what is the reaction from the White House? It’s silence. Obama seems to have a problem with twisting arms and whipping his majority party in Congress into shape. At the rate he’s going he could well go down in history as one the most ineffective presidents in our country’s history. But then, he has to answer to his handlers just as surely as Congress does.


TAO Walker said...

Barack Obama has of course been furnished with those parts of the script in which he has lines to speak and motions to go have those other elected officials with any level of "need-to-know." Only the cluless subject/citizenry still believes slaphappily that something other than the final fleecing and slaughter of their kind is what it's all about here in these latter days.

"'s all livestock," as that old C & W song had it.


Case Wagenvoord said...

And Obama plays his script well.

Anonymous said...

Exempting the 8,000 smaller banks may in fact be a good thing. Many are local institutions and credit unions who did not participate in the derivatives bamboozle, either out of prudent due diligence or because the snake oil salesmen disdained calling on unglamours locales. Such institutions actually operate on the margin and if they had to hire the high-flying legal types who can talk the lingo to a new level of bureaucracy they'd soon make the transition from Beford Falls to Pottersville.
Have a wonderful life.
Your pal,
Dwight Whayle said...

Well written...and to the Glover, Vermont, a Bread and Puppet performance had "Congress" dancing the can-can, singing "Yes we can! can-can!!" ... Congress members have sold themselves and even their gumming the banks is theater...