The GOP is at it again. Republicans on the House Agriculture Committee passed a plan Wednesday to delay regulation on "financial speculation", including in the food and OIL MARKETS. In a Wednesday vote, the committee approved a bill to delay by 18 months the writing of many key regulations outlined in last year’s Dodd-Frank financial reform law. Dodd-Frank requires regulators to write a host of new rules to TIGHTEN OVERSIGHT over DERIVATIVES, financial instruments designed to help farmers and manufacturers hedge their risk that are also used by financial speculators. Warren Buffett has called derivatives "Financial Weapons of Mass Destruction" and the financial tools played a key role in the downfall of insurance giant AIG. THIS CAUSES GAS PRICES TO GO UP! Republicans kept quiet and refused to comment to reporters -- afraid to be linked to Rising Gas Prices!
Wall Street's King: Goldman Sachs is pulling out all the stops (spending millions on lobbyists; wining and dining Congress) in their desperate attempt to stop or at least delay the Volcker Rule. This is the BIG ONE Baby! The Volcker Plan is a proposal to restrict U.S. banks from making certain kinds of speculative investments if they are not on behalf of their customers. THIS IS THE BIG WALL STREET REFORM PLAN. This plan STOPS the Banks from betting against the American Public. If you are familiar with the Housing Bubble burst, as the Goldman Sachs investigation showed, business as usual on Wall Street has for too long allowed banks to create instruments which are based on junky assets, then sell them to clients, and bet against their own clients by betting on their failure. The Volcker Plan proposes to end that type of conflict which Wall Street has engaged in.
Now, lobbying disclosures show Goldman representatives have been working both sides of the political aisle (Both Repubs & Dems are being lobbied and are commiserate in delaying this legislation) and meeting with top officials in the White House and regulatory agencies. Get this, Goldman Sachs is lobbying the very agencies that are supposed to be regulating them and protecting "We the People."
Goldman has hired an all-star team of lobbyists and former government officials, leveraging powerful connections to get its message across to regulatory and political leaders."Before the crisis, Goldman was basically non-existent in Washington," said a former Congressional staffer who now works as a policy analyst at a Wall Street bank. "Post-crisis, Goldman is everywhere."
The SEC and four other regulators are in the process of writing separate versions of the Volcker rule, which must then be reconciled and shaped into a single set of regulations.
"Volcker is the subject of a very quiet, closed-door battle right now, not just between us and Wall Street, but among the agencies as well," said Bart Naylor, who has lobbied regulators for consumer-rights coalition Americans for Financial Reform.
Goldman Sachs spokesman Stephen Cohen declined to comment.
My question is, why aren't the Tea Partiers aware of this? Why aren't they protesting Goldman Sachs and their lobbyists? I thought they were interested in improving the economy. Why isn't this all over Cable News? Not on Fox! Not on NBC, ABC, CBS! Very little on-line.
Why aren't we all up in arms about this? I'm Blogging about it.
Tea Party, if you truly care about the Economy and a successful America, then Read Up on this Issue. Call your Congresspeople to support this legislation! However you will be very disappointed. The biggest opposition to this legislation are your friends, the GOP! (And some Dems too!) I guess they all have deep pockets!