Posted on 07/22/2010 9:49:21 AM PDT by iceskater
Iceskater --
Our nation will take an important step forward today to bring greater accountability to Wall Street and provide greater security to folks on Main Street. Every Virginian has a stake in the comprehensive financial reform legislation that becomes law today.
Eighteen months ago, our nation was on the verge of an economic catastrophe. Many families became over-extended and a lot of businesses got overleveraged, triggering a financial storm that also hurt many Virginians who were playing by the rules: retirement savings and college saving funds were devastated, home values plummeted, and many of our small businesses had to close their doors.
But modern new financial rules of the road that become law today will help create a 21st century financial system that works for all Americans -- not just the big banks.
More importantly, we have created a framework for economic recovery and growth.
As a new member of the Senate Banking Committee, I was proud to be asked to help lead a bipartisan effort to address how we could better monitor, and disentangle, complex and interconnected financial companies that get themselves into trouble.
I don’t know about you, but I don’t want to hear the words “too big to fail” ever again.
So we have designed several new tools that should allow regulators to recognize when one of these financial firms is on the verge of failure. They will have the ability to impose tough new capital and leverage requirements that actually make it undesirable for any financial firm to get too big.
The legislation creates an “early warning” council of regulators who will be empowered to compare notes and identify and address systemic risks posed by these companies, their products, or their activities before they can threaten the stability of our overall economy.
These financial companies must periodically submit “funeral plans” with a roadmap for their own rapid and orderly shutdown should the company go under.
These new tripwires will allow us to “unwind” these failing corporations through an orderly bankruptcy process, and all of this will occur at the expense of the financial industry -- not the American taxpayers.
That means company executives, members of their board and their investors will pay the price for their company’s financial mistakes. These failing companies will be put out-of-business. They will not be propped-up by the taxpayers, like we saw with AIG and CitiGroup.
In addition, these new reforms put an end to many predatory and deceptive lending practices. Every consumer will be empowered by access to clear and concise information they need to make the financial decisions that are right for them.
The bill creates an independent consumer watchdog at the Federal Reserve, with the authority to ensure that consumers get the information they need to shop for mortgages, credit cards, and other financial products. Never again will Virginians be treated unfairly because of the “fine print” or hidden bank fees.
Virginia’s smaller, community-based banks and credit unions – local financial companies who followed the rules and did nothing to trigger the 2008 financial catastrophe -- are exempted from many of these new requirements.
We also provide tough new rules for transparency and accountability for the Wall Street credit rating agencies. That means investors and shareholders who want to see their companies grow and prosper will have greater access to more relevant information they need to make responsible financial decisions
The legislation takes responsible steps to stop the Wall Street practice of shopping around for the weakest possible regulatory oversight.
It also eliminates loopholes that allowed risky and abusive practices to go unnoticed and unregulated, including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds and mortgage brokers.
I recognize that simply passing this legislation is only half of the challenge: now these new requirements must be implemented in a responsible and rational way.
The legislation does not address the problems and abuses at the federally supported home loan agencies Fannie Mae and Freddie Mac. After we see more signs of stability in the housing markets, Congress must address those challenges – hopefully next year.
But two years after a financial meltdown, I believe we have acted appropriately to ensure that a similar crisis does not happen again.
We have provided consistent and rational oversight within the financial markets – new rules that will allow our country to compete globally even as we grow our economy locally.
When the American financial system operates on principles of fairness and openness that promote economic growth and stability, we all win.
Regards, Mark Warner
You're kidding right? You honestly think that pile of dog doo you passed and called Financial and Banking reform is actually going to solve anything? When the two biggest players in the financial collapse, Fannie Mae and Freddie Mac, were deliberately left out?
Or are you really that stupid? I'd really hate to think my Senator was that stupid. Because your constituents are not that stupid.
Frankly, you'd do more good by not doing anything than continuing to enact these abominations of bills that are slowly and surely destroying the very fabric of our country.
Thanks for your time.
Warners response is contemptible boolsheet. The cure for that sort of arrogance is a good, old-fashioned public hanging.
Well, I’m thinking tar and feathers....
....he is an arrogant a$$.
I’ve got the tar .....
What a POS our junior senator is. I hope he enjoys the last 4 years of his term, because he’ll be OUT ON HIS ARSE after that, if this is the best that he can do.
When my wife, who’s also my business partner and a mortgage broker, got this yesterday she hit the roof. She called his office, and got nothing but sarcastic, snide disdain from the man in his office.
One term. Gone. Folks keep complaining we need term limits, but we already have them — we vote them out.
BTW — call Warner (himself) and ask him to explain an over-the-counter derivative; I guarantee he can’t.
Senator Mark Warner is a bought political toad, who must be sent packing ASAP. He cares not on twit for the Constitution or the people he supposedly represents.
Finical reform should have consisted of re-instating the former wall between financial institutions and banks (???-sigall bill) that was passed after the Great Depression.
Then enforce existing law, which the SEC has not done.
Eighteen months ago, our nation was on the verge of an economic catastrophe. Many families became over-extended and a lot of businesses got overleveraged,
Senator, eighteen months ago the US Congress, both Senate and House, had already been controlled by the Democratic Party for TWO years. Are you saying that Party's values and actions precipitated the economic catastrophe, and now, you, by way of arcane legislation, are apologizing for its malfeasance?
I'm older and a hell of a lot wiser, and so advise that you will be a better man if you own up to what you are saying, whatever that is.
Warner could’ve signed that letter as Paul Krugman and it would’ve made sense. It sounded like something Krugman would say in defense of anything 0bama.
During his tenure as Governor, Warner somehow created this narrative that he was some kind of saint, and he rode that all the way to the Senate in ‘08. He claimed he’d be an “independent voice” for Virginia, but, like fellow webbwarner brother Jim Webb, has almost exclusive voted as directed by Harry Reid. They’re both just tools with no ability of critical thought. At the Senate, to remove all doubt, they should simply have an “Obamalove” button available when voting on legislation.
That statement, lest I be misunderstood, meant "It would sound like something Krugman would say." The context of Warner's letter is NOT sensible.
So you convinced me to go dig that out of my delete box and send him a reply. Thanks.
Great! At least I won’t be alone in the gulag. I used to write nice but firm letters. Not anymore.
I knew what you meant. :-)
Well, what do you expect from a former ‘used car’ salesman?
A former Governor should know better. He’s just carrying Harry Reid’s water. What a scumbag.
Are you serious? This isn't some kind of joke is it? How in the world do you expect to hem in fiscal abuse if you don't include Freddie Mac or Fannie Mae? Oh I forgot, those programs are big time leftist Democrat boondoggles that have to be protected at all costs. Quite frankly I and, I would hazard to say, most of your constituency would be happy if you out of touch folks in DC would leave private business alone instead of passing poisonous legislation that continues to tear at the fabric of this country. This economic "crisis" was precipitated by government over-regulation and manipulation of the housing and banking markets that originated in The Carter and Clinton administrations. Tou must really think that Virginians are a bunch of fools. You'll find out differently come this fall, and in the subsequent two election cycles.Thank you for your time.
Good letter. I’m done mincing words with these people. They’re destroying this country and our way of life.
I think you’re thinking of Don Beyer. M.Warner made his money in cell phone something or other. AFAIK, he wasn’t in the car business.
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