Associated Press | President Barack Obama vowed Friday to veto a
financial overhaul bill that doesn’t regulate the eclectic derivatives
market, even as Senate Republicans lined up en mass against it.
Legislation
pending in Congress would for the first time regulate derivatives,
complex financial instruments like the mortgage-backed securities that
contributed to a near economic meltdown in 2008 when their value
plummeted during the housing crisis.
Obama said he wants derivatives to be strongly regulated, and he added that he’s ready to veto any financial reform bill that comes to his desk without it.
But there’s some dispute among Democrats about how far such regulation should go.
Further complicating matters Friday, Senate Minority Leader Mitch McConnell obtained signatures from 40 fellow GOP senators voicing opposition to the Senate bill and demanding further negotiations.
McConnell (R-Ky.) won the support of one last holdout – Sen. Susan Collins of Maine — increasing his leverage as Democrats prepare to bring the legislation to the floor for debate.
The unified GOP stance came as a setback for majority Democrats who were hunting for individual Republicans to peel away from their party caucus to help the Democrats get the necessary 60 votes to overcome a likely procedural roadblock.
“We are united in our opposition to the partisan legislation reported by the Senate Banking Committee,” the Republicans said in a letter to Senate Majority Leader Harry Reid (D-Nev.).
DOES ANYONE BELIEVE COMRADE OBAMA, REID, OR PELOSI KNOW WHAT AN ECLECTIC DERIVITIVE IS?
Um, yes Doug M., I believe Mr. President understands enough what a derivative is. I, myself, know enough to understand that regulations are essential. Derivative trading works both sides of an equity where you can profit from failure as much as success. Think about it Doug, do you not think that “not” regulating this type of trading group needs some form of governing? It’s primarily used for hedging but if you don’t regulate you may start betting against your own company (eg. Pete Rose, White Sox 1912) to line your pockets…’say it ain’t so, (shoeless Jackson) Joe?’.
The bottom line that I believe Mr. President is doing, is to regulate the “fat-cats” that handle all OUR money (banks) so they can be accountable for “screwing-OUR-money” up and leveraging the people to fix the bank-failures (from the “fat-cats”) will Not happen again.
Oh, don’t worry Doug M, the “fat-cats” will indeed find another way to screw us again…that’s what they do for a living. (short-term gains…long-term fails…but we’re the ones that suffer because they’re doing just fine either way.
Is it similar to the profits/earnings ratio? DougM is right-he couldn’t define it if there was money riding on it.
Oh dear…dusty, the Democrats really need that badly. It’s about darn time the Dems stood up and halt the sensationalized bully-beatings of the Republicans and TEA DUNG groups. The Republicans have sensationalized the news with blatant lies, propoganda and hypocracy. I’ve been waiting for the Democrats to “Please-fight-back” especially now with the TEA JUNKIES amassing the media spot-light.
The Healthcare reform bill has stood SO-FAR-IN-THE-FORGROUND based upon Republicans messed-up definitions and Not the true Obamacare plan. People hate it because of that and not for what the bill (law) is truely defined.
The meeting Mr. President had with the Republicans early this week regarding the new banking regulations was presented by the Republicans AGAIN as a LIE!!! This LIE will be embellished and emoted furthermore by the TEA FOOLERS to stir-up yet more anger in that new faction.
The equity-derivative formula is quite complex and works. If not included with the proposed legislation, then the “fat-cats” will use it as a loophole. This should be an all-inclusive regulatory bill for the banking industry.
Reg of derivatives won’t help one whit if we don’t reinstate Glass-Steagall. Soon as I hear Obama mention reestablishing the firewall between banking, investing, and insurance, then I will be able to take him seriously.
And as for the GOP? They’re nothing but partisan hacks more than willing to destroy the econ if it will enhance their electoral chances. It doesn’t matter what position Obama takes, they will be against it. The sooner the Dems stop trying to work with those idiots, trigger the “nuclear option”, and start doing the work of the people, the better off the country will be. Hopefully then the GOP will get the point, and start electing sane Republicans.
dusty sez:
“Check out how washington is wasting our tax dollars. ”
Um, you do realize that that story has nothing to do with tax dollars, right?