Thursday, September 03, 2015 12:07am
North Adams, MA now: 63 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
LOG IN | REGISTER NOW   

Home About Archives RSS Feed
The Independent Investor: Power Shift III
By Bill Schmick On: 08:36AM / Saturday October 06, 2012
Who's Regulating the Regulators?

In the aftermath of the financial crisis, Americans demanded a change in the regulatory system. Since the financial sector was responsible for engineering the near collapse of the global banking system, it is Wall Street that has borne the brunt of the government's expanding role in the markets.

As in everything, increasing government regulation is meaningless without the power to enforce it. The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in July 2010. Hailed as the most comprehensive and far-reaching reform since the 1930s, the 848 page-long bill has far-reaching power over so many areas of American life that it requires five federal agencies just to enact portions of the rules and regulations.

Essentially the bill was supposed to re-write how Wall Street did business. Everything from predatory lending in the mortgage markets to putting an end to hidden fees and penalties on credit cards was included. New rules would end speculation in the derivatives markets and there would be no more danger of "too big to fail" institutions such as AIG dragging the rest of the financial system down with it.

A plethora of new government powers and agencies would not only have authority over the financial system  and the economy that would end up affecting veterans, students, the elderly, minorities, investor advocacy and education, whistle blowers, credit rating agencies, municipal securities, the entire commodity supply chain of industrial companies and much, much more.

In signing the bill, President Obama proclaimed that "these reforms represent the strongest consumer financial protections in history." Before the ink was dry the battle had begun. Wall Street and its cronies faced the largest power grab in its history and they were not about to go down without a fight.

For the last two years a combination of Republican, bankers and other corporate entities have done everything in their power to reverse the legislation or at the very least prevent its enactment. Using everything from lawsuits to loopholes from intimidation of the regulators and innumerable stalling tactics, the opposition is betting that if they can stall the legislation until the election, then a newly-elected Republican president and Congress can repeal the act as they plan to do with Obamacare and just about every other piece of Democratic-sponsored legislation.

Their tactics are understandable if regrettable. No one likes to relinquish power and in this case there is a lot of money at stake. Money greases the wheels of industry, but also the re-election chances of all politicians. The two are umbilically connected in this country. The wonder is that any sort of legislation to herd in the excesses of Wall Street passed in the first place.

I credit you and me for that success. The American public was so outraged by the greed and thievery of our nation's banks, brokers and insurance companies that we demanded some action. Even the politicians had to cave in to the public's demands if they wanted to have a chance at re-election. But passage and implementation are two different things. As far as criminal indictments, well that's taking the whole thing a bit too far. No one in Washington is going to bite the hands that feed them that drastically.

So while the excesses on Wall Street continue — new derivative trading scandals, mini flash crashes, interest rate rigging by the world's largest banks — the regulators avoid regulating. One wonders therefore if the power shift that has occurred in this country is really from the people to a handful of politicians and their financial handlers on Wall Street.

Bill Schmick is registered as an investment adviser representative with Berkshire Money Management. Bill’s forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquires to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.

The Independent Investor: Power Shift Part II
The Independent Investor: Power Shifts from Wall St. to Washington



0 Comments
     
News Headlines
BMC Opens New 'Neighborhood For Health' Clinic in North Adams
Pittsfield Hoping One School Will Pilot School Uniforms
Circle of 6 App Helping Change Campus Culture at Williams
Berkshire Federal Credit Union to Merge with Greylock
Downing Seeks Local Participants for Citizens Legislative Seminar
Greylock Provides Third Installment of $50,000 Pledge to Meals on Wheels
North Adams Happenings: Sept. 2-8
Pittsfield's Ives Pledges Communication In Bid For Council Seat
Cheshire Wants to Change Spelling of Hoosic River
Colegrove School Project Work Continues; Exterior Shaping Up

Bill Schmick is registered as an investment advisor representative and portfolio manager with Berkshire Money Management (BMM), managing over $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com Visit www.afewdollarsmore.com for more of Bill’s insights.

 

 

 



Categories:
@theMarket (178)
Independent Investor (242)
Archives:
August 2015 (7)
July 2015 (6)
June 2015 (8)
May 2015 (6)
April 2015 (8)
March 2015 (6)
February 2015 (7)
January 2015 (9)
December 2014 (7)
November 2014 (4)
October 2014 (9)
September 2014 (5)
Tags:
Retirement Banks Congress Energy Greece Housing Selloff Oil Rally Interest Rates Election Crisis Pullback Stock Market Fiscal Cliff Bailout Deficit Markets Currency Metals Debt Economy Europe Jobs Recession Taxes Debt Ceiling Fed Japan Commodities Stimulus Euro Europe Federal Reserve Stocks
Popular Entries:
The Independent Investor: Don't Fight the Fed
The Independent Investor: Understanding the Foreclosure Scandal
@theMarket: QE II Supports the Markets
The Independent Investor: Does Cash Mean Currencies?
@theMarket: Markets Are Going Higher
The Independent Investor: General Motors — Back to the Future
The Independent Investor: Will the Municipal Bond Massacre Continue?
@theMarket: Economy Sputters, Stocks Stutter
The Independent Investor: Why Are Interest Rates Rising?
The Independent Investor: How Will Wall Street II Play on Main Street?
Recent Entries:
@theMarket: Are We There Yet?
The Independent Investor: The Marijuana Market
@theMarket: Markets Are Supposed to Pullback
The Independent Investor: Not All Bonds Are the Same
The Independent Investor: The Risk of Rising Rates
The Independent Investor: Boomers' Kids Don't Want Your Stuff
@theMarket: Month-End Musings
The Independent Investor: Supermarkets Evolve to Survive
The Independent Investor: Are You Ready for El Niņo
@theMarket: O Ye of Little Faith


Motorama Winners 2015
Plenty of trophies, plaques and jackets were awarded to...
Motorama 2015
The 5th annual Motorama filled downtown North Adams with...
Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
Pat Torchia Women's Softball...
Whitman's took the first game in the best two out of three...
Third Thursday August 2015
It was another beautiful night for 3rd Thursday on North...
Berkshire Chamber @ Darrow...
The Berkshire Chamber of Commerce held its monthly...
Shire City Sessions August...
Wild Adriatic performs at Monday's Shire City Sessions, a...
BYP Networking @WTF
The Berkshire Young Professionals held its networking event...
Softball: VFW Post vs Pizza...
VFW Post vs Pizza House at DiSanti field on Monday night.
Second Cheshire Block Party
Cheshire resident enjoyed good food and music by the...
Downtown Celebration 2015
The annual Downtown Celebration brought hundreds to Main...
Pittsfield Ethnic Fair
Pittsfield Ethnic Fair was held at the Pittsfield Common on...
Annual Cruz Nite And...
Cheshire residents enjoyed classic cars, good food, a BMX...
Adams National Night Out 2015
Adams recognized its first responders on Tuesday night...
Motorama Winners 2015
Plenty of trophies, plaques and jackets were awarded to...
Motorama 2015
The 5th annual Motorama filled downtown North Adams with...
Live on the Lake: Madison...
Madison Avenue wrapped up the 2015 Live on the Lake concert...
Whitman's Wins Torchia League...
The Pat Torchia Women's Softball League playoffs concluded...
Berkshires Craft Beer Fest...
The 9th annual Western Mass beer festival drew hundreds of...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings |
Advertise | Recommend This Page | Help Contact Us
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2012 Boxcar Media LLC - All rights reserved

Privacy Policy| User Agreement