The Republicans seem to have given up their objection that the financial reform bill will institutionalize bailouts of banks that are too big to fail. Instead, they have now shifted their focus to the consumer protection provision of the bill, which they claim is over-reaching. They are demanding modifications to the bill and want Senator Christopher Dodd, chairman of the Senate Banking Committee, to incorporate their suggestions. [Read more…]
Debate on Financial Reform Blocked by Senate Republicans
After the financial meltdown was blamed for a major part on unregulated derivatives and credit default swaps (CDS), the Democrats are pushing to pass the financial reform bill that will bring in more regulation of the financial industry. But this has become a case of easier said than done as the Republicans are firmly opposed to the bill and have blocked it from being brought on the Senate floor for debate. Senate Republicans want to add significant changes to the bill and question Democrats’ tough regulations for financial institutions. [Read more…]
Future Bailouts Ruled Out by Senate
The Republicans and the Democrats are at loggerheads over various aspects of the new finance bill. But there is at least one thing that both wings have reached an agreement on. It has been agreed that there should not be any more bailouts of major financial institutions using the taxpayers’ money. [Read more…]
No Agreement on Derivatives Trading Restrictions
One of the key aspects of the financial reform bill was to put restrictions on derivative trading by banks. But it has emerged that there are still serious differences among two senators who were entrusted with the job of shaping the rules. [Read more…]
Financial Reform Could Include Legislation on Financial Planners
If a proposal from Democrat Senator Herb Kohl finds its way into the financial reform bill, and if that bill is passed, the financial planning profession could soon be regulated.
Currently there are no restrictions or laws governing people who call themselves financial planners. This is in stark contrast to other financial professions. For example, an investment adviser has to be registered with the SEC, and an insurance agent needs a license to sell insurance policies. There are many laws that govern what these professionals can and cannot do when selling their products or when providing a particular service. [Read more…]
Proposal to Change Student Loans System Could Get Passed
An agreement struck between lawmakers from the Democratic Party could pave the way for the student loans legislation to be passed. The idea is to include the bill, along with health care legislation, in the budget package, so that both the controversial legislation can be passed without facing the hurdle of a filibuster. [Read more…]
