Posted on 09/28/2008 12:04:55 AM PDT by Myynnxx
“The last six months have made it abundantly clear that voluntary regulation does not work,” he said in a statement. The program “was fundamentally flawed from the beginning, because investment banks could opt in or out of supervision voluntarily. The fact that investment bank holding companies could withdraw from this voluntary supervision at their discretion diminished the perceived mandate” of the program, and “weakened its effectiveness,” he added.
(Excerpt) Read more at nytimes.com ...
I think it is silly to argue about whose bandaid is ineffective when congress and the Fed is stabbing the economy over and over with freddie mac and inflation.
It is in the NY Times. Why would I read it and if I wasted the time to read it why would I believe it. I will let the WSJ or IBD chime in on this to see if I think the SEC could have done anything when Congress and the Attorney General were demanding that lenders make bad loans.
The fact that investment bank holding companies could withdraw from this voluntary supervision at their discretion diminished the perceived mandateI LOL'd.
I work in finance & insurance. It’s a good article with a lot of good, true information, mostly coming from the chairman on the SEC. I thought everyone could use the info.
Knowledge is not a bad thing.
This whole thing is a plot by the Commie Democrats to restrict America’s free enterprise capitalist system by imposing more socialistic regulations on our financial markets. The answer is Not more regulation, it is de-regualtion which will allow the capitalist marketplace to make the decisions for our economy.
Also, why does this happen just before the election? Looks like it might be another Commie Democrat October surprise to me. I bet we would never have heard about this if there was no election.
Right knowledge is a good thing. If I was sure that the NY Times did not have an agenda, I could read this and any article they publish for knowledge. But alas they have an agenda so I can’t.
I also can not go get someone to vouch for each article they publish. So I am still going to wait to read what a paper without an agenda has to say about SEC regulation.
So McCain’s call for SEC Chairman Chris Cox to resign may end up being right on the money. How come McCain is always prescient and is ridiculed by Obama and the democrats only to find out later that he was right: The Surge, Georgia, now this?
Why wait for Obama to figure out what to do when McCain has spot on instincts today?
The fact that the article tends to support McCain's call for Chris Cox to go impresses me not. It's just a way to get some "moderate" Republicans to fall in line with the story the NYT/DBM/DNC all want to tell.
I bet Cox was working with the Commie Democrats to create this whole conspiracy and the so-called crisis. He is a secret Democrat, a traitor to his Party and his Nation.
Where do I go to join the militia?
The “bad investments” by and large were the packaging and selling of ARM loans (mortgages) (as debt) that were repackaged as securities (which they’re not.) The financial “geniuses” who did this (making BILLIONS in commissions along the way) all knew those ARM loans were going to blow up on the people who took them (mostly because it was the only way they could purchase a home.) The people who took these loans were told because the market was so strong they’d be able to turn around and sell the house before the loan rate “adjusted”, and they bought into that thinking.
So when the housing market bubble burst, since it was so bloated, they couldn’t sell nor refinance because their home was now worth less than what they still owed on it. Then suddenly their ARM adjusted into a monster they couldn’t pay. The securities became worthless pieces of paper, and those who orchestrated all of this have their billions in offshore accounts and have, as of yet, absolutely zero responsibility for it. In fact MOST CEOs of these financial companies who failed because of buying these securities have all received big fat severance checks for taking their companies into the gutter. Instead they all should be in prison, with their assets forfeit and being used as the money for the “bailout”/”shoreup” or whatever the SEC wants to call it this week, not our tax dollars from the treasury.
Basically, because of “voluntary regulation” which was completely ignored, they turned the finance industry into a casino with a giant ponzi scheme at it’s heart.
The regulation of the financial markets we used to have would never have allowed A) these ARMs being given to under-qualified home buyers, and B) NEVER EVER allowed debt to be sold as securities. It’s not like whoever owned the security would get the house if the person defaulted on the loan since the bank who issued the ARM in the first place is who now owns the house.
Voluntary regulation?????
Dear Lord - and they actually thought companies would sign up? That has got to be the lamest thing I have every heard.
Yes, I think we conservatives got that, too bad the NYT didn't think we needed to know that. And there's even more, as you well know, like the Democrat-imposed rules that compelled lending institutions to make the risky loans that later got bundled into the mortgage backed securitites that made the "paper" even more worthless when the housing bubble burst. Sorry, but we've already got guys like Schumer, Meeks, Frank and all your favorite Democrats on video saying that there was no problem with Fannie Mae and Freddie Mac, and opposing additional regulation of those troubled "GSE"s. By the way, I notice you're a newbie. You didn't recently change your middle name to "Hussein", did you?
We the people son’t trust the NY Times, the US Congress George Bush, Chris Cox, Henry Paulson, Goldman Sachs, etc, etc...this bailout is pure corruption. Now how do we fire these incompetent crooks?
Welcome to FR. Thanks for posting the article on SEC.
Pay no attention to the antipathy here for the NY Times...we just hate the paper but the NYT does have some good infomation and still has plenty of access to the Policy makers. Glad you are here as you appear to have handson experience with the Financial Industry.
Soory you have to live amongst the crazies in CA but it sounds like your friends and coworkers are Conservatives. Keep up the good fight.
Anyone want to explain this to me? Was this the beginning of the SEC failure?Why was it passed?
Thanks for your explanation in comment #12. Many of us forget events of the past months too quickly. Even more of us have forgotten about similar schemes of the late 1970s and early 1980s that caused problems later.
You are right. But it goes further.
Freddie and Fannie changed the underwriting rules. They changed the rules to provide loans to lower income (bad credit) purchasers. Had it been a local bank making the loan and HOLDING the loan, this would not have happened since banks want to make loans to the best and most credit worthy borrowers. But, because Fannie and Freddie purchased most of the bad loans in the market place, there were tons of loans made because there was a black hole to sell them into.
Then, Fannie and Freddie packaged those bad loans and sold them as debt securities, which they had ostensibly blessed simply because of their “good name.”
So the front line here is Fannie, followed by the credit rating agencies, followed by the investment houses selling the “products.”
bump
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