Banking reform bill
#6185348
03/12/18 02:39 PM
03/12/18 02:39 PM
|
Joined: May 2011
Posts: 16,609 Oakland, MS
yotetrapper30
OP
trapper
|
OP
trapper
Joined: May 2011
Posts: 16,609
Oakland, MS
|
This is NOT politics guys, so if you have a political comment keep it to yourself. This is economics. I just read this release by my (moderate!) Republican senator, in regards to this bill in the Senate now. The way he explains it, he makes it sound like a good thing, but I'm leery. I don't greatly understand everything about the economy but know we have some economic gurus on here. If I'm understanding this right, the Frank Dodd regulations were put in place to prevent another housing bubble from occurring, and this bill would do away with those regulations? Is that correct? How is that a good thing? https://www.wicker.senate.gov/public/index.cfm/weekly-report?ID=E916EA70-29CE-46EB-B541-AA9379D1E81CMar 12 2018 Wicker Supports Senate Effort to Roll Back Dodd-Frank Regs Community Banks to Benefit From Banking Reform Bill For the past eight years, our nation’s small banks and credit unions have been caught in the crosshairs of an onerous regulatory regime built by the Dodd-Frank financial law. The law’s multibillion-dollar compliance costs have hampered the important roles these local banks play. Now, with a new bipartisan bill for banking reform, the Senate has a good chance of providing much-needed regulatory relief to the smaller financial institutions that serve our communities. I support this aggressive rollback of Dodd-Frank’s harmful regulations and look forward to the bill reaching the President’s desk. Having cast a firm “no” vote when Dodd-Frank was considered by the Democrat-led Senate in 2010, I believe this relief is long overdue. The law’s onslaught of red tape was not the answer to the 2008 financial crisis nor a substitute for real consumer protections. Americans in rural areas are among those especially hurt when their community’s only financial institution cannot meet Dodd-Frank’s big-bank requirements. The new Senate bill would protect small banks from these requirements, stipulating that banks must have at least $250 billion in assets, much higher than Dodd-Frank’s $50 billion threshold. Consumers Are Left Empty-Handed as Small Banks Close Without these protections, many small banks have found that dealing with high compliance costs and a climate of regulatory uncertainty is unsustainable. Since Dodd-Frank, community banks have closed or consolidated at an alarming rate, ultimately leaving consumers and small businesses with fewer choices for their finances and less access to job-creating capital. Small banks simply do not have the financial or human resources to comply with regulations designed for big financial institutions. Moreover, as small banks merge, the big banks get even bigger. Community banks were not responsible for the economy’s downturn. However, they can help strengthen its resurgence as the primary source for small business loans under $1 million. This access to capital could make the difference for first-time homebuyers or an innovative startup. Wicker Amendment Would Help Mississippi’s Rural Banks To empower our small banks and their services to consumers, I have put forward an amendment to the banking reform bill that would exempt small banks from specific rules on capital that were designed for large financial institutions. My amendment would benefit several rural banks in Mississippi, which have not been spared from these burdensome capital requirements. The central role that small banks play in our local communities cannot be overstated. The success of Main Street should not be jeopardized by Washington’s bureaucratic reach to rein in the excesses of Wall Street. Community banks are directly connected to the people they serve. Given the return of high business optimism and positive economic news, now is a golden opportunity to offer our small banks the relief they need. The Senate’s banking reform bill would do that, once again demonstrating the commitment by Republicans to remove costly regulations impeding economic growth. The bill’s broad support suggests that even Democratic lawmakers who supported Dodd-Frank now recognize its flaws and the ways in which the law has not changed the banking landscape for the better.
~~Proud Ultra MAGA~~
|
|
|
Re: Banking reform bill
[Re: white17]
#6185353
03/12/18 02:44 PM
03/12/18 02:44 PM
|
Joined: May 2011
Posts: 16,609 Oakland, MS
yotetrapper30
OP
trapper
|
OP
trapper
Joined: May 2011
Posts: 16,609
Oakland, MS
|
It's long overdue !! repeal it entirely ! Can you explain why? I must be missing something?
~~Proud Ultra MAGA~~
|
|
|
Re: Banking reform bill
[Re: white17]
#6185356
03/12/18 02:50 PM
03/12/18 02:50 PM
|
Joined: Dec 2006
Posts: 7,181 Three Lakes,WI 72
corky
trapper
|
trapper
Joined: Dec 2006
Posts: 7,181
Three Lakes,WI 72
|
It's long overdue !! repeal it entirely ! x2 Dodd-Frank is a regulatory nightmare that does nothing but create "Too big to fail" banks.
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6185377
03/12/18 03:21 PM
03/12/18 03:21 PM
|
Joined: May 2010
Posts: 10,485 MN
Steven 49er
trapper
|
trapper
Joined: May 2010
Posts: 10,485
MN
|
I say repeal it and do away do away with taxpayer bail outs.
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6185388
03/12/18 03:34 PM
03/12/18 03:34 PM
|
Joined: Mar 2007
Posts: 35,176 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
|
"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,176
McGrath, AK
|
It's long overdue !! repeal it entirely ! Can you explain why? I must be missing something? As others have noted, it is unnecessarily complex and created regulatory costs that small banks could not afford. Also, Dodd-Frank set up the CFPB which is unaccountable to ANY branch of government ...so no oversight. It's budget is unlimited and is funded by the Federal Reserve rather than Congress. It's reason for existence was to extort funds from disfavored industries...by the previous administration. It amounted to a slush fund for anti-capitalist inclinations ....also of the previous administration.
Mean As Nails
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6185418
03/12/18 03:55 PM
03/12/18 03:55 PM
|
Joined: May 2011
Posts: 16,609 Oakland, MS
yotetrapper30
OP
trapper
|
OP
trapper
Joined: May 2011
Posts: 16,609
Oakland, MS
|
Ok, I still don't really understand it all but sounds like most of you think reforming or even getting rid of it is a good thing.
I guess my main question is if it was totally gone (which I don't think is what they're proposing, just scaling back), what would prevent the banks from giving loans to people they know could never pay them back, like they did before?
~~Proud Ultra MAGA~~
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6185447
03/12/18 04:27 PM
03/12/18 04:27 PM
|
Joined: May 2016
Posts: 629 Wilmington, NC
Tim H.
trapper
|
trapper
Joined: May 2016
Posts: 629
Wilmington, NC
|
Not trying to hijack the thread, but White, what do you think about glass steagall? My understanding: it limits communication between commercial and investment bankers so that they can't work against their clients beat interest. What are the downsides?
"The man who goes to sea for pleasure would go to (This word is unacceptable on Trapperman) to pass the time!"
|
|
|
Re: Banking reform bill
[Re: white17]
#6187038
03/14/18 12:46 AM
03/14/18 12:46 AM
|
Joined: Dec 2006
Posts: 2,958 Va
pass-thru
trapper
|
trapper
Joined: Dec 2006
Posts: 2,958
Va
|
Because they were FORCED to make those loans before. Without D/F they would not make those NINJA ( No Income No Job, or Assets) loans Hold on now. One of the biggest causes of the bubble was loan bundling, and selling. So the individuals/banks initially approving the loans, were off the hook by the time they failed. There was no forced approval in that. How does removing current regulations protect against this scenario repeating?
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6187043
03/14/18 01:15 AM
03/14/18 01:15 AM
|
Joined: Jan 2008
Posts: 9,227 Alaska and Washington State
waggler
trapper
|
trapper
Joined: Jan 2008
Posts: 9,227
Alaska and Washington State
|
Frank-Dodd was just a big gift to the mega banks and it put many smaller lenders out of business, lenders who were more flexible with their lending practices, lenders who would loan money to small businesses.
I used to make private loans to small-time builders who couldn't get loans from banks, these loans were secured through Deeds of Trust on the borrowers property. Frank-Dodd made it virtually impossible for me to continue making these loans. This resulted in many small builders going out of business.
Frank-Dodd was a sleazy, crooked con job. They knew exactly what they were doing, and it wasn't meant to help the little guy; just the opposite.
"My life is better than your vacation"
|
|
|
Re: Banking reform bill
[Re: yotetrapper30]
#6187045
03/14/18 01:23 AM
03/14/18 01:23 AM
|
Joined: May 2011
Posts: 1,405 Kansas
Kansas Cat
trapper
|
trapper
Joined: May 2011
Posts: 1,405
Kansas
|
I have spoken at length with the president of my local bank. From the way he described the regulations of DF, compliance was a ridiculously time consuming exercise. Local banks are the best originating locations for most reasonably sized loans. Local bankers know who the best risks are. Any laws that reduce unnecessary paperwork and keep banking relationships as local as possible are, in my opinion, good.
Last edited by Kansas Cat; 03/14/18 01:23 AM.
|
|
|
Re: Banking reform bill
[Re: Rat Masterson]
#6187047
03/14/18 01:23 AM
03/14/18 01:23 AM
|
Joined: Dec 2006
Posts: 2,958 Va
pass-thru
trapper
|
trapper
Joined: Dec 2006
Posts: 2,958
Va
|
What does bundling have to do with defaulting, either pay it back or you don't. Bundling and selling. If the person approving the loan suffers no consequence when the loan defaults, then he has no reason to be judicious in approving the loan. It is for this very reason that the housing bubble demonstrated what happens when the invisible hand is removed from capitalism.
|
|
|
Re: Banking reform bill
[Re: white17]
#6187074
03/14/18 05:38 AM
03/14/18 05:38 AM
|
Joined: May 2010
Posts: 10,485 MN
Steven 49er
trapper
|
trapper
Joined: May 2010
Posts: 10,485
MN
|
Because they were FORCED to make those loans before. Without D/F they would not make those NINJA ( No Income No Job, or Assets) loans They wouldn't have made those loans without the possibility of taxpayer bail outs. They wouldn't have made those risky loans without the fraudulently rated derivative markets.
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
|
|
|
Re: Banking reform bill
[Re: pass-thru]
#6187196
03/14/18 09:03 AM
03/14/18 09:03 AM
|
Joined: Mar 2007
Posts: 35,176 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
|
"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,176
McGrath, AK
|
What does bundling have to do with defaulting, either pay it back or you don't. Bundling and selling. If the person approving the loan suffers no consequence when the loan defaults, then he has no reason to be judicious in approving the loan. It is for this very reason that the housing bubble demonstrated what happens when the invisible hand is removed from capitalism. On the other hand.........when the loan originator knows he WILL suffer a consequence via government prosecution if he DOESN'T make the loan ...it removes any incentive for him to be judicious in assessing the borrower's ability to pay. That was exactly the situation under the Community Reinvestment Act. At the same time, I agree that moral hazard, in the form of public bailouts, needs to be eliminated.
Mean As Nails
|
|
|
Re: Banking reform bill
[Re: Steven 49er]
#6187362
03/14/18 12:01 PM
03/14/18 12:01 PM
|
Joined: Jan 2011
Posts: 830 West coast of Iowa
iaduckhntr
trapper
|
trapper
Joined: Jan 2011
Posts: 830
West coast of Iowa
|
I say repeal it and do away do away with taxpayer bail outs
As I understand it now, no more bail outs. Now its a bail in, close all banks & take 10-20-30% of every one $$$$ to make the banks solvent, like they did in Egypt & Greece. Dennis
Old 8 toes~~ life ITA and NRA member Life in the fast lane is no place for a tricycle!
|
|
|
Re: Banking reform bill
[Re: iaduckhntr]
#6187390
03/14/18 12:42 PM
03/14/18 12:42 PM
|
Joined: Mar 2007
Posts: 35,176 McGrath, AK
white17
"General (Mr.Sunshine) Washington"
|
"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,176
McGrath, AK
|
I say repeal it and do away do away with taxpayer bail outs
As I understand it now, no more bail outs. Now its a bail in, close all banks & take 10-20-30% of every one $$$$ to make the banks solvent, like they did in Egypt & Greece. Dennis Why would you confiscate private assets from a healthy bank in order to prop up a failing institution that made bad decisions ?
Mean As Nails
|
|
|
|
|