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Posts Tagged ‘Banking Reform

Obama’s phony banking “reform”

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The Elite at the hub of our financial crisis have established themselves in positions of preeminent wealth and power without actually contributing anything useful to America’s economy.  They make and do nothing,  just taking bites out of what others have produced. Since they have so little stake in our society, it is not surprising that their corrupt system built the bubble and arranged to profit when it collapsed.

The revolving door between Wall Street Banksters and the government meant to regulate them means no real change is likely without a sustained outcry of the American people.

Photo by Rich Tatum

Obama’s phony banking “reform”

Barry Grey 27 April 2010

Debate on the Senate version of the Obama administration’s bank regulatory overhaul is expected to begin shortly. The House of Representatives passed its banking bill last December.

Neither bill does anything to curb the power of the banks or limit their parasitic and socially destructive activities. What the media is calling the “most sweeping overhaul” of the banking system since the Great Depression in reality sanctions the ever greater monopolization of the financial system by a handful of Wall Street giants, imposes no limits on executive pay, and allows the banks and hedge funds to continue gambling on exotic and largely unregulated securities such as collateralized debt obligations and credit default swaps.

The so-called bank “reform” is an exercise in mass deception—an attempt to placate popular hostility to the banks and provide the government with political cover while it continues to do the bidding of Wall Street.

The bills have been drawn up in the closest consultation with bankers and bank lobbyists. This collusion has been widely reported in the press and presented as a perfectly normal and acceptable fact of political life. The front-page lead article in Monday’s Wall Street Journal describes the intensive lobbying being carried out by billionaire investor Warren Buffet to alter the Senate bill’s provisions on derivatives.

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