"Tough financial fraud rules on tap
Clicked on it and got this:
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-- Your friends at Boston.com"Not the first time it's happened!
See: The Ole Sunday Switcheroo
Boston Globe Covers For Drunk Connecticut Judge
"Obama Plans to Propose Stronger Financial-Fraud Rules
March 25 (Bloomberg) -- The Obama administration plans to unveil new rules to protect consumers and investors against financial fraud, aiming to stamp out practices that helped spark the mortgage-market crisis.
The administration will also release this week proposed legislation requesting new powers for the Treasury and Federal Deposit Insurance Corp. to take over failing financial institutions and wind them down. Treasury Secretary Timothy Geithner said today that the plan for a so-called resolution authority over non-banks would include a mechanism for raising funds to cover any losses.
The U.S. also will coordinate internationally to press for stronger global standards for financial companies, Geithner said in a speech to the Council on Foreign Relations in New York....
Geithner said regulators need new tools to prevent “cascading damage” when financial companies run into trouble, such as higher capital standards and restrictions on the amount of risk they can take on. To get through the crisis, the U.S. must continue “extraordinary actions” to prop up the financial system and also seek regulatory changes to prevent a recurrence, Geithner said.
Responding to audience questions after the speech, Geithner said the Treasury has enough money left in the $700 billion Troubled Asset Relief Program passed last October, “to make sure we can meet other contingencies and fund whatever capital requirements the system needs,” Geithner said. He also didn’t rule out asking for more funding....
Seeing as the papers know how angry we are right now, I'm not surprised they pulled this piece down. NO MORE BAILOUTS, period!!!!!!!
On Tuesday, Geithner called for new authority to seize and wind down failing financial companies in the aftermath of the rescue of American International Group Inc....
Looking more and more like a contrived event to place before you for obvious, agenda-pushing reasons! Btw, these guys claiming they are fixing the problem, brought you the problem on purpose. Geithner headed the N.Y. Fed while all this was going on.
Details released yesterdayday, the Treasury and the FDIC would be the main agencies that handle the resolution of the systemically important financial companies that aren’t banks. The Federal Reserve and other regulators would be consulted. The plan uses procedures similar to the way the FDIC handles bank failures, without tapping the Deposit Insurance Fund used to safeguard bank deposits.
Instead, the administration will seek new funding mechanisms. This could take the form of a “mandatory appropriation” to the FDIC or a special assessment on financial institutions, the Treasury said.
Translation: the want to build another bailout fund.
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And what do I get in place of the piece on the Globe's website? Some New York Times trash.
"US to seek hedge fund oversight" by Edmund L. Andrews and Louise Story, New York Times | March 26, 2009
WASHINGTON - The Obama administration will detail today a wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision, officials said.
How about ELIMINATING thos gamblers from the mix, huh? How we got in this mess.
The Treasury secretary, Timothy F. Geithner, will outline the broad revamping of the regulatory system, which goes further than expected, in a hearing today. He is expected to say that the new rules are necessary to prevent a repeat of the excesses that nearly wrecked the global financial system and plunged the economy into a recession.
The agenda-pushing on this becomes clearer and clearer.
The plan, which would require congressional approval, would give the government vast powers over financial institutions that are so big that their collapse would jeopardize the economy as a whole....
Yeah, SOCLIALISM is OKAY if it is FOR the RICH!
But the most striking new proposals, and the ones that may provoke the most heated opposition from the industry, would regulate so-called private pools of capital - hedge funds, private equity funds, and venture capital funds - and the gigantic market in financial derivatives, including instruments like credit-default swaps, the insurancelike instruments that allow investors to hedge against bond defaults.
That's why my state is in such trouble!
Those bank rip-offs are killing us all:
"In the 1990s, the T and other transit agencies were encouraged by federal officials to sell their train equipment to banks and then lease it back. The arrangement brought the T $53 million in upfront payments. In return, the private banks realized a tax benefit"
"The authority was attempting to renegotiate terms of a complex financial deal with the banking giant UBS. Known as a swaption, the arrangement could force the authority to pay out a $450 million lump sum"
NOT a GOOD IDEA at all!!! Thanks, Bill Clinton!
"During the go-go investing years, school districts, transit agencies, and other government entities were quick to jump into the global economy, hoping for fast gains to cover growing pension costs and budgets without raising taxes. Deals were arranged by armies of persuasive financiers who received big paydays. But now, hundreds of cities and government agencies are facing economic turmoil"
Related: Swapping Partners Good For Health
And now I finally understand why vencap is always loaded to the gills with $$$$: they are ANOTHER SINKHOLE for RICHER CASH!!!!!!!!!! Anything to keep it from paying for national health insurance or anything like that.
Hedge funds and private equity funds manage money for wealthy individuals and institutions like pension funds. They both had explosive growth over the last decade....
Under the administration proposal, hedge fund, private equity, and venture capital fund advisers would have to register with the SEC. They would be required to provide the government - on a confidential basis - information on how much they borrow to leverage their investments as well as information about their investors and trading partners.
The SEC would then share those reports with a new "systemic risk regulator," which might be the Fed and might impose new requirements on any hedge fund that was deemed systemically important.... A growing number of lawmakers and policymakers are worried that hedge funds have become too big to operate without government monitoring.
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Had enough fooleys?
The secretive era for hedge funds may soon be ending.
The Obama administration yesterday proposed overhauling the nation's financial regulatory system, bringing government oversight to hedge funds, some of which have had spectacular implosions or fraud-related collapses recently, and to derivative securities, such as credit-default swaps that were behind the $170 billion federal takeover of American International Group.
The proposal would require pools of investment capital above a certain size - which include private equity and venture capital firms in addition to hedge funds - to register with federal securities regulators, similar to what mutual funds are required to do. This would give regulators access to the investors' books, and the opportunity to detect overly risky investments, excessive borrowing, trading irregularities, and other signs of trouble.
If adopted, the rules would affect a large swath of Boston's financial sector. The city is home to some of the nation's most prominent private equity and venture capital investors and a robust hedge fund sector....
Translation: Boston (and the Globe mouthpiece) is PART of the PROBLEM!!!!
Among the tasks of this so-called systemic risk regulator would be to determine which among the nation's biggest banks, insurance companies, trading operations, and the like are either so big or so entwined in the financial system's operations that they cannot be allowed to fail. The regulator would have the power to force the companies to operate more conservatively, by holding more capital in reserve or reducing borrowing. The goal is to prevent the kind of catastrophic losses that rippled through the system last year with the failure of Lehman Brothers Holding Inc.
Can you take much more? Get those credit markets oiled up, yup.
The administration is also promising to install new protections on money market mutual funds, to guard against the losses some funds hit consumers with last year. The proposal also calls for creating a new government authority charged with conducting an orderly dissolution of any big firms that do fail.
The regulatory proposals are still not fleshed out, but already some in the hedge fund industry are identifying potential trouble spots. One common refrain: The rules could penalize small firms, possibly driving many out of business.
And AT LAST, you FINALLY SEE the REAL PLAN!!!
Yup, GLOBALISTS DRIVING OUT the LITTLE GUY!!!!!
California hedge fund executive David Friedland, who is also president of the Hedge Fund Association, said many of the smallest firms would not be able to afford the amount of legal and professional services necessary to comply with government registration.
Please see: Seizing Your Sack of Shit
"If you do that, you'll put too much of a cost on small funds that are already struggling to survive after what happened in 2008," he said. However, Friedland does support registration for hedge funds above $250 million. While that presently is only about 30 percent of the 9,000 or so hedge funds in the country, these larger funds account for 95 percent of the industry's assets under management.
Some industry members warned that requiring more hedge funds to register would flood the government with paperwork, threatening to overwhelm regulators and preventing them from doing the kind of policing the rules intend....
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Translation: They are going to rip you off either way!!!
