photo by NCinDC1
It looks like the Congressional leaders and the President have come to an agreement to save the financial industry with the $700 billion that the Treasury Department has been asking for. Lawmakers pushed for joint spending controls with the Bush Administration. The Bill will go to the house tomorrow for a vote. President Bush feels that Congress will pass this Bill without any problems, He said in a written statement released today, “Without this rescue plan, the costs to the American economy could be disastrous,”
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It seems thought that others don’t share Bush’s optimism.Capitol Hill leaders are now moving to sell it to colleagues in both parties and acknowledged they were not certain it would pass. “Now we have to get the votes,” said Sen. Harry Reid, D-Nev., the majority leader.
Of course we have Nancy Pelosi, who is always looking for a photo “op” as well as showing that she actually cares about the American people said “This isn’t about a bailout of Wall Street, it’s a buy-in, so that we can turn our economy around.”
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The plan would let Congress hold on to half the money and force the president to jump through some hoops before using it all. The government could get at $250 billion immediately, $100 billion more if the president certified it was necessary, and the last $350 billion with a separate certification — and subject to a congressional resolution of disapproval.
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“This is the bottom line: If we do not do this, the trauma, the chaos and the disruption to everyday Americans’ lives will be overwhelming, and that’s a price we can’t afford to risk paying,” Sen. Judd Gregg, the chief Senate Republican, told The Associated Press. “I do think we’ll be able to pass it, and it will be a bipartisan vote.” Some of the lawmakers feel that it might not pass until possibly Wednesday.
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“This is something that all of us will swallow hard and go forward with,” said Republican John McCain. “The option of doing nothing is simply not an acceptable option.”
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Barack Obama Of course is trying to claim credit for taxpayer safeguards added to the initial proposal from the Bush administration. “I was pushing very hard and involved in shaping those provisions,” he said.
I don’t know how we even need the other politicians in Washington when we have this man who thinks of everything for the American people (yes, I’m only joking). Sort of the way that Obama is a joke of a candidate.
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The best part of the plan is that there will be guidelines to the fact of the “Golden Parachutes”. Executives whose companies benefit from the rescue could not get one, as well as any firm that benefits the most (receiving more than $300 million) would be taxed highly on any compensation for their top execs over $500,000.
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I look forward to see how Wall Street views this tomorrow morning. I don’t see this being anything but a good thing throughout the week. I expect the financial sector to be up at the end of the week.
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Federal Reserve,
Financials,
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Security Exchange Commission,
Treasury Dept.
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On Friday September 26, 2008 the Chairman of the Security Exchange Commission (SEC) released a statement in regards to to mess in the financial industry. I’m not surprised that no where in the statement does he say that because of his lack of leadership skills and responsibility that he will resign from his position. Instead he puts the blame on Congress and the bill that they passed.
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Why is it that we have the two entities, the SEC and the Federal Reserve, that are to keep an eye on the economy and the way the financial companies do business, not do their job for the last few years? Now that the economy is in dire straits, they want to step up and get something done. Let’s not over look the fact that it’s not themselves that the total burden falls on, no they have to run back to Congress (the entity that they blame in the first place) to rush and get it done. It’s a shame that our own government and it’s administration refuse to take the blame for this mess.
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Chris Cox’ statement is full of what is going to be done now, after the fact of him and his staff have sat back and watched this unfold. It speaks about what changes are recommended to be made to have this Consolidated Supervised Entities (CSE) program work. The same program that was passed by Congress that didn’t work in the first place. In his own words he says that “the program was fundamentally flawed from the beginning”.
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He even goes on to say that there are still other gaps in the regulatory framework. Mr Cox stated “Unfortunately, as I reported to Congress this week, a massive hole remains: the approximately $60 trillion credit default swap (CDS) market, which is regulated by no agency of government.”
Why is it that this is only being reported this week?
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If Mr Cox has been informing our Congress of the situation for the last few years, why hasn’t anything been done until now?
Here is the statement from Chris Cox that was posted on the SEC website for anyone who wants to read it all. I suggest that you take your ulcer pill first before reading.
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The Security Exchange Commission is under investigation for not doing their job. The investigation will be conducted by the Inspector General according to news reports. The SEC is at fault for missing red flags in regards to Bear Stearns as well as allowing them to use inside auditors which is clearly against the rules.
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What I’m really surprised at is that it took this look to make the decision. Why is it though that the Inspector General hasn’t opened other investigation against Chris Cox and SEC for the lack of regulations that should have been done for the last three years?
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In a statement from Chris Cox, He comment that he’s spoken before about the voluntary regulations rules are not the way things should be. What is he talking about? He’s the man in charge for making these regulations and he’s already stating that someone needs to do his job. It’s the job of the SEC to do these regulation investigation and to make sure that the guidelines are enforced.
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This is one of the many reasons why this country’s economy and credit crisis is spiraling out of control. Accountability is something that is disappearing in this country’s government and it looks like it won’t be coming back anytime soon. This investigation is just a joke anyway because what are they going to do to the SEC? They can’t arrest the whole commission and there won’t be any fines that Chris Cox would have to pay. The worst thing that is to happen is the he will have to step down from his position as the Chairman. We all know what would happen then. he will be offered a position with one of the many financial institutions that he looked the other way for. It’s a shame that this corruption is going on right in front of our eyes and it seems that nothing can be done about it.
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Security Exchange Commission,
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