Financial reform Fades If the need is growing

The need to reform and re-regulation of the financial sector increased, while the chances of meaningful reform fade with each action and the declaration by the parties concerned. There are already more than a year of investigations of the Congress, with the result that there is no longer clear what happened. greed and excessive risk-taking, aided and abetted by very low interest rates, regulatory powers and is spread over too many bodies to be effective, has led to a housing bubble. RecordLevel of risk by financial institutions, home buyers and investors through which to do, especially subprime mortgages and other forms of financing "creative" for a collapse of crisis proportions, when the bubble burst.

This is already fixed, as are the parts played by the major stakeholders. But this week, another committee, the Financial Crisis Study Commission, which was actually created last summer finally begins his investigation. So we had the spectaclecurrent and former bank manager, the Governors of the Federal Reserve and even the former Fed chairman Alan Greenspan, where he asked to explain again what happened, the extent of their role was, and what you can do to prevent recurrence.

Everything we have learned the new investigation so far that they are all suffering from the financial crisis are held, and we apologize for the role they have played their business by accident or in the structure of the bubble or burst it. But it was notadvice, and do not know how and why it happened. You all know what it is, that was not his fault. Many top managers of the banks had even declared no idea leveraged Collateralized Debt Obligations (CDO's) to do so in a high risk it was. He said it was his impression of the CDOs held virtually no risk. Another testified that he was not aware until the end of 2007, after the massive write-off had been going on for several months that his bank had earned 43 billion U.S. dollarsCDOs on their books. He evidently thought it had all been sold to investors.

While all this talk nonsense in progress, it is increasingly clear how little has changed. In the worst cases, the financial sector will only continue loopholes and other ways as before, and to make their intentions, they also made it clear to find. As reported by the Securities & Exchange Commission that "Dark pools now account for 8% of stock trading. What is a dark pool? This is aSystem that institutions such as banks, brokerage firms allowed, and hedge funds, with large blocks of shares trade over the counter "to each other in private, ostensibly" to avoid scaring the market to buy or sell. " What is the SEC do about it? He says he will consider whether the activity affects the dark pool as part of the list price of the shares. Please tell me, how could he not? Meanwhile, the SEC stated objective of the mandate"Not to protect the public from venture capitalists or their mistakes, but to ensure that all available information is also available to public investors at the same time, so that their decisions are informed decisions." Thus, the insider trader laws, the issue of corporate financial statements and reports both to the public and economic institutions, and so on. But the SEC wonder if it would take to cover 8% of stock trading on the stock exchange from spaceby the public? Ah yes, the reform on track.

The SEC also announced that it proposes a rule that forces companies Street, wall pack and sell asset-backed securities such as CDOs, to keep books at 5% of the loans packaged for its own account, so selling it will share the risk with which they invest. The SEC said it should ensure that companies will be more careful in screening borrowers to take out a mortgage, car loans and credit card debtsform packages. Wow! It 's a tough new rule, certain to reform key problem of the past. Only too evident that the gaps. My-year-old nephew of 8 could design a plan to carefully scrutinize loan applicants to ensure that good for 5% of the loans and hold those loans at 5% is to keep her books on her and not to sell to investors.

And as the Wall Street Journal report on Friday on data from the federal agency has been basedReserve Bank of New York. These data demonstrate that in the last five quarters, 18 major banks, including Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC) and Citigroup (C), the simple debt they used to trade their securities in bottom of each of these areas, and on average a massive 42%. The report said that decreased the level of debt at the end of each quarter for their quarterly financial statements, and then increased the debt, were the next quarterwas in progress, repeat the procedure every quarter.

And that can be saved in the last five quarters, according to its taxpayers, to hide the risks collapsing under the previous as a major cause of their few, and when they were allegedly taken from a more regulatory scrutiny. Oh, yes, we are making progress, the financial sector under control, so you do not have a financial collapse and economic route. Meanwhile, the financialThe industry is also clear and unequivocal remorse and intention to reform its own - no.

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