Bernanke: Act now on financial overhaul

[Nickdfresh]

‘Now is the time for policymakers to take action’ to prevent future crises
The Associated Press
updated 12:12 p.m. ET, Fri., Oct . 23, 2009

WASHINGTON - Federal Reserve Chairman Ben Bernanke prodded Congress Friday to enact legislation overhauling the nation's financial regulatory system to prevent a repeat of the banking and credit debacles that had thrust the country into crisis.

"With the financial turmoil abating, now is the time for policymakers to take action to reduce the probability and severity of any future crises," Bernanke said in remarks to a Fed conference in Chatham, Mass.

For its part, the Fed has been taking steps to strengthen oversight of banks, sharpen consumer protections and on Thursday unveiled a sweeping proposal to police banks' pay policies to make sure they don't encourage top executives and other employees to take reckless gambles.

But Congress needs to step in and close regulatory gaps and make other changes that only lawmakers have the power to do, Bernanke said.

At the top of the Bernanke's list: Congress must set up a mechanism — along the lines of what the Federal Deposit Insurance Corp. does with troubled banks — to safely wind down big financial firms whose failure could endanger the entire financial system.

And, the costs for such a mechanism should be paid through an assessment on the financial industry, not by taxpayers, the Fed chief said.

Moreover, Congress needs to set up better systems for regulators to monitor risks lurking in the financial system, he said.

The Obama administration has proposed such action as part of its overhaul of financial rules. Its plan would expand the Fed's powers over big financial institutions but reduce it over consumers. Congress, however, is leery of expanding the Fed's reach because it and other regulators failed to crack down on problems that led to the crisis.

A House panel on Thursday approved a piece of the Obama plan, creating a federal agency devoted to protecting consumers from predatory lending, abusive overdraft fees and unfair rate hikes. Doing so, however, strips some powers from the Fed.

Bernanke, in his remarks Friday, talked about the Fed's efforts to bolster consumers protections.

He also said the Fed is working on rules to better safeguard consumers from abuses when it comes to overdraft protection, reverse mortgages and gift cards. But he didn't get into a public debate over whether the Fed — or a new consumer agency — is best equipped to do the job.

Forceful actions taken by the Fed and the government helped avert a global financial crisis last fall and since then financial conditions have "improved considerably," Bernanke said.

Fallout severe
But the fallout from the crisis has been severe, reflected in deep drops in economic activity and heavy job losses both in the United States and overseas, he said.

The Fed chief didn't talk about the future course of interest rates in his speech or in a brief question-and-answer session afterward.

To nurture the budding recovery, the Fed is expected to keep a key bank lending rate near zero when it meets in early November. Analysts predict rates will stay at super-low levels into part of next year.

On another topic, Bernanke said he doesn't anticipate that the Fed will conduct another round of "stress" tests on big banks to check on their financial health.

Earlier this year, the Fed's first-ever stress tests found that some banks needed to boost their capital as a cushion against future losses.

Since the start of the year all 19 banks that participated in the stress tests have raised more $150 billion in capital, he said.

One questioner suggested that Bernanke team up with Obama to do a series of videos to help make families more financially literate.

One of the many factors contributing to the financial crisis was decisions made by some people to buy houses they couldn't afford. Mortgage defaults spiked as did home foreclosures.

"I'm reminded about kids who speed and then they have to watch these films about car crashes," the Fed chief quipped about the video suggestion. The Fed has stepped up outreach to consumers in the wake of the crisis, he said.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Bernanke: Act now on financial overhaul - Stocks & economy- msnbc.com (http://www.msnbc.msn.com/id/33447116/ns/business-stocks_and_economy/)

[FORD]

Yes we need regulation. But what we need is to undo the damage done by Reagan, Poppy, Clinton, and the Chimp, and RETURN to the regulations that fucking worked. The ones implemented by FDR in the 1930's. Funny how we didn't have any of this Wall $treet thievery going on before those regulations were being systematically destroyed beginning in 1981.

And the "Federal" reserve regulating financial criminals makes about as much fucking sense as the Catholic church regulating pedophiles.

[GAR]

I loved how, during the first 60 days of the new administration, we lost sight of all the Geico ads and ditech.com refinance commercials.

Then, when the banks got all the fucking money, the Geico and Ditech (GMAC=GM) ads started popping off again..

"borrow on your home.." "home loans available again" and my favorites ".. new Obama refi program legislation entitles you to refinance"

Such bullshit. Bush's overseas wars were a tame little stuffed animal expenditure, compared to what Obama's doing to our tax money. It's going on upwards of 21 trillion now, some programs won't kick in for 3 years, most wont be due in 10, just in time to point the fucking finger "Republican expenditure.."

Just remember folks, this was all brought to you by the Democrat controlled congress, phasing in circa 2006.

[GAR]

And the "Federal" reserve regulating financial criminals makes about as much fucking sense as the Catholic church regulating pedophiles.

http://www.halfwaytoconcord.com/wp-content/uploads/2009/02/geithner-bank-plan-details.jpg

[Big Train]

Yes we need regulation. But what we need is to undo the damage done by Reagan, Poppy, Clinton, and the Chimp, and RETURN to the regulations that fucking worked. The ones implemented by FDR in the 1930's. Funny how we didn't have any of this Wall $treet thievery going on before those regulations were being systematically destroyed beginning in 1981.

And the "Federal" reserve regulating financial criminals makes about as much fucking sense as the Catholic church regulating pedophiles.

Well, YOU MIGHT want to start thinking about removing some of the criminals in there right now:

D Charles Rangel-Tax Cheat AND Chairman of the Ways and Means

D Chris Dodd-Congressman tied to Countrywide and various shady things he has no recollection over

Tim Geithner-Tax Cheat

I cite these examples (and everyone knows that there are Repubs too) because these guys are in control. "Now is the time" for what exactly? To push through every social program known to man? To revamp with no sense of understanding of fundamental economics every building block of our society? And then have people who write the very code not follow it, or more accurately, "forget to disclose?

[FORD]

Believe me, if I had anything to say about it, Timmy the Keebler Elf would be the first one gone. Followed by $ummers. As far as Dodd goes, my immediate concern with him is that he's going to be negotiating the health care bill, based on what his wife's bank account wants (she's in the insurance industry) rather than what his alleged friend Ted Kennedy would have wanted (which is real reform and health care for all)

[standin]

You know, the babble... ohhh lookie him he cheated on his taxes... point gasp.
The fact is the tax code is complicated, None of us could say we have never made mistakes on our taxes. Sometimes it is accidental other times an oppsie, then you get into fudging and then blatant misconstrue.

When you say someone has been caught by the IRS, it needs to be defined.
No one or no company can go a lifetime and not have errors on their taxes.
It is a matter of blatant disregard and even then I think was it just lazy frustration, not that lazy frustration is OK, but understandable. And still chargeable and fine-able.

[FORD]

Willie Nelson cheated on his taxes too, but he would still be a better Secretary of Agriculture than MonSatan/DLC whore/rigger of the Iowa 2004 caucus Tom VilSuck.

[Big Train]

You know, the babble... ohhh lookie him he cheated on his taxes... point gasp.

When you say someone has been caught by the IRS, it needs to be defined.
No one or no company can go a lifetime and not have errors on their taxes.
It is a matter of blatant disregard and even then I think was it just lazy frustration, not that lazy frustration is OK, but understandable. And still chargeable and fine-able.

Have we EVER had a Sec. of the Treasury before Geithner who was KNOWN tax cheat? Please name him if I have missed it...

You are aware of his case I'm sure. Blatant disregard would be numerous years of misfilings in serveral expenses categories...that's Tim Geithner.

[standin]

Wasn't Willie one of the unfortunates that got hoodwinked by that con-artist going around telling people that the government did not need taxes and you didn't have to pay taxes. Wot a fruitcake!

[Big Train]

Willie Nelson cheated on his taxes too, but he would still be a better Secretary of Agriculture than MonSatan/DLC whore/rigger of the Iowa 2004 caucus Tom VilSuck.

I'd vote for that...would move several of my investments along.

Bio-Willie for all..and with all the stock, performance and internal investigation problems at that company, would be a PERFECT fit for the admin of Barry O.

[standin]

Have we EVER had a Sec. of the Treasury before Geithner who was KNOWN tax cheat? Please name him if I have missed it...

You are aware of his case I'm sure. Blatant disregard would be numerous years of misfilings in serveral expenses categories...that's Tim Geithner.

you going to have to do better than misfiled categories.


And numerous years can lean toward showing he or his accountant thought it was an actually correct filling.

[Big Train]

you going to have to do better than misfiled categories.


And numerous years can lean toward showing he or his accountant thought it was an actual correct filling.

That would be a great argument for a plumbing company or something along those lines. Not so much for a guy who worked at the Treasury Dept. since 1988. How hard would it be to check into that. "Hey Lois, can you get me one of the tax guys on the line"?

[standin]

You kidding, right?

I can't believe you do not see what is wrong with that statement.

[Big Train]

No I don't...are you suggesting it is somewhat difficult for a high ranking official at the Dept. of the Treasury to have well placed connections with the IRS? Or that making that phone call would be all that difficult? Or that someone that well versed financially could not read the tax documents themselves and make a correct decision?

Your pleading ignorance on his part and I'm saying it is quite difficult to do given what he does for a living and his (supposed) level of financial intelligence.

So I'd have to accept one of three premises:

1. He knew was he was doing and thought he wouldn't get caught.
2. He is an idiot who is not very good at what he does.
3. He and his (unqualified) advisors were negligent in not doing basic due diligence over a number of years.

[standin]

I am saying that your thought process is faulty.
If you do not see what is wrong with your statements, you have a deviant personality issue.

[Dr. Love]

Standin has a good point, Big Train. If you don't agree with his (her?) point, then you have a personality defect or character flaw.

Might as well hang up the gloves, there's no way you can compete with such debating skills.

[standin]

What I was trying to politely say is that he was showing criminal leanings,
He suggested clearing up one inappropriate behavior with using another inappropriate behavior.

[Dr. Love]

Seems to me what he's saying is that we should have higher standards for the Secretary of the Treasury than we do for other people.

Yeah, it's easy to mess up your taxes. But he's not just another guy, he's a high ranking administration official and deserves to be held to a higher standard than the rest of us.

[standin]

That is true. And some people go their whole life with nary a speeding, parking ticket or accident.
But just because they do does not make them qualified or able to run the Department of Transportation.
But maybe the person running the Department of Transportation has nary a parking ticket and nary a speeding ticket.
However, if DOT person has a ticket doing 105 in a 45 that would be reckless abandon. Or a ticket driving a 18-wheeler without a CDL.


If the SoT guy had some really baddies in his basket, BT would have been serving it up.

But misclassification of expenses with no numbers or levels involved is sugar water.

[Dr. Love]

I think the analogy may be more in line if you supposed the person running the department of transportation had habitually speeding/parking tickets and then paid the wrong amounts/paid late/didn't pay.

Just a sloppiness and lack of attention to detail that you don't really want in a person that is running an agency for the federal government.

[standin]

You have to admit, there are some areas of the tax code chocked full of speed traps and other areas you will go on for millions never seeing stop sign or a soul.

[Dr. Love]

Yes, but I'm very careful with my taxes and make sure it's reviewed so that I do my best to avoid running afoul of the IRS.

I'd be much happier with no income tax and a tax on goods and services instead. :)

[standin]

A person can go their whole life and never get audited. They may get audited once, but if anyone or any company gets audited on a regular basis, they will have tax code violations. It is just a matter of to what extent will they all be noticed?

[standin]

Yes, but I'm very careful with my taxes and make sure it's reviewed so that I do my best to avoid running afoul of the IRS.

I'd be much happier with no income tax and a tax on goods and services instead. :)

We all hate audits. There is not a citizen alive you can't find SOMETHING they did not do correct on their taxes.

I am not sure what country runs their tax system like that, can you give me an example?

[Nitro Express]

I couldn't agree more the first step is getting rid of the Federal Reserve.

[standin]

Oh goodness the conspirators are noticing rainbows in the water again........

[Nitro Express]

Before the Federal Reserve we had two other central banks. Both of those failed. The Federal Reserve will fail but that will be due to the US Dollar failing. When the FED auctions $100 million of bonds and the rest of the world only wants to buy $80 million that's when you run for the hills. If the Fed fails other central banks will go with it. The result would be a global distrust in fiat currency.

[Big Train]

What I was trying to politely say is that he was showing criminal leanings,
He suggested clearing up one inappropriate behavior with using another inappropriate behavior.

Thanks for being polite about calling me a criminal.

Anyway, that isn't what I'm saying at all, nor do I understand why you would go down that path.

All I'm saying is that when he was filing out those tax forms, he had access to key people in the IRS who could have easily cleared it up for him, thus avoiding any criminality at all!

I'm saying him just saying it wasn't his fault is much more dubious given the actions he could have easily have taken in the first place.

[standin]

Before the Federal Reserve we had two other central banks. Both of those failed. The Federal Reserve will fail but that will be due to the US Dollar failing. When the FED auctions $100 million of bonds and the rest of the world only wants to buy $80 million that's when you run for the hills. If the Fed fails other central banks will go with it. The result would be a global distrust in fiat currency.
And all empires have ended except Russia. Go figure.

[standin]

Thanks for being polite about calling me a criminal.

Anyway, that isn't what I'm saying at all, nor do I understand why you would go down that path.

All I'm saying is that when he was filing out those tax forms, he had access to key people in the IRS who could have easily cleared it up for him, thus avoiding any criminality at all!

I'm saying him just saying it wasn't his fault is much more dubious given the actions he could have easily have taken in the first place.

:duh:

[Nitro Express]

And all empires have ended except Russia. Go figure.

Empire America will fail and it will implode into itself causing civil unrest here. That being said, what will come on the other side of this? I have no idea. Fortunes will be lost, lifestyles will be shattered but will America ideal of personal freedom be washed away and replaced with corporate fascism? I see the world falling into two camps. The corporate fascists vs. the communists. Europe/America vs. China/Russia.

[Nitro Express]

One thing for sure. There is no such thing as a secure job anymore and there is no such thing as a safe haven in the financial world anymore. This is the big real change. The systems we have relied on are shaky and can fail at anytime. The system seems to be going down.

[Nickdfresh]

Well, YOU MIGHT want to start thinking about removing some of the criminals in there right now:

D Charles Rangel-Tax Cheat AND Chairman of the Ways and Means

D Chris Dodd-Congressman tied to Countrywide and various shady things he has no recollection over

Tim Geithner-Tax Cheat

I cite these examples (and everyone knows that there are Repubs too) because these guys are in control. "Now is the time" for what exactly? To push through every social program known to man? To revamp with no sense of understanding of fundamental economics every building block of our society? And then have people who write the very code not follow it, or more accurately, "forget to disclose?

They hate taxes, you should love them...

[Nickdfresh]

Have we EVER had a Sec. of the Treasury before Geithner who was KNOWN tax cheat? Please name him if I have missed it...

You are aware of his case I'm sure. Blatant disregard would be numerous years of misfilings in serveral expenses categories...that's Tim Geithner.



Seems to me what he's saying is that we should have higher standards for the Secretary of the Treasury than we do for other people.

Yeah, it's easy to mess up your taxes. But he's not just another guy, he's a high ranking administration official and deserves to be held to a higher standard than the rest of us.

The only reason Geithner was nominated, and confirmed, was because he was maybe one of two or three people qualified to take that job in the mist of an economic meltdown and crisis. And the others may well have turned it down...

[Dr. Love]

If that's true, his rough start is enough to make me worry that he was one of the only qualified ones.

[Big Train]

They hate taxes, you should love them...

Only if they put into the tax code what they really believe. Republican hypocrisy revolves around religion, Democratic hypocrisy revolves around telling other people what to do in their lives and not doing it themselves (on a non-religious basis).