Obama plan would ‘cut number of regulators,’ empower Fed to supervise firms
Published: June 16, 2009
Updated 5 months ago
President Barack Obama will announce Wednesday the White House’s proposal for reforming the U.S. financial system. The plan will call for the closure of the U.S. Office of Thrift Supervision (OTS), the creation of a new consumer credit protection agency and greater powers for the Federal Reserve to supervise major financial firms.
Reuters characterized the plan as cutting the number of U.S. bank regulators.
The administration would merge the OTS with the Office of the Comptroller of the Currency, an administration official said Tuesday. The proposal also calls for creating the Consumer Federal Protection Agency (CFPA) to police credit, savings and other payment markets, the official added.
It will be guided by five principles, the official said on condition of anonymity, including “transparency, simplicity, fairness, accountability, and access.”
The agency is one of a number of reforms which Obama is expected to lay out in his latest attempt to shield consumers from the ravages of an out-of-control finance industry blamed for pitching the US and global economy into crisis.
“We are going to put forward a very strong set of regulatory measures that we think can prevent this type of crisis from happening again,” Obama said, after meeting South Korean President Lee Myung-Bak at the White House.
The official said the administration had concluded that previous reforms of the subprime mortgage market and the credit card industry had not yet ensured sufficient protection to consumers and that more measures were needed.
The new agency will be designed to promote concise and clear information for consumers and protect them from “unfair and deceptive practices,” the official said.
It would promote fair, efficient, and innovative financial services markets for consumers and improve access to financial services.
The agency will also have the power to reform US mortgage laws to ensure customers get simple mortgage disclosures, and are full aware of risks and benefits of various mortgage products, the official said.
US Treasury Secretary Timothy Geithner and chief White House economic adviser Lawrence Summers gave a broad outline of their plan to better regulate the finance industry in an op-ed piece in The Washington Post on Monday.
The government is set to impose stringent capital and liquidity requirements for the largest and most “interconnected” financial firms, they wrote.
All large financial institutions whose failure could threaten the stability of the system will be subject to supervision by the Federal Reserve.
The government will also establish “a council of regulators” with broader coordinating responsibility across the system.
Geithner and Summers further argued that the dramatic growth in financial activity outside the traditional banking system, such as the spread of asset-backed securities, has led to “an erosion of lending standards” which deepened the bust in the housing sector.
With AFP.
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This is bullshit. I do not want the Fed empowered beyond what they already are. In fact I want them gone.
Time to organize and fight this tooth and nail!
Notice that the advisors behind this are former, high ranking employees of Goldman-Sachs. Giving supervisory power to the Federal Reserve is a classic case of the fox guarding the henhouse. The majority of the Federal Reserve board get s chosen by the member banks. This proposal bears the seeds of additional catastrophes. In effect, the banks would be unregulated or self-regulated. We already have seen where that led.
“transparency, simplicity, fairness, accountability, and access.”
Where have I heard that before?
Exactly! More “Obama-brand Transparency” — you know, the opaque kind.
Now that’s change you can believe in!
CHANGE YOU CAN BELIEVE IN!!!!!!
GO OBAMA!!!
HOW ABOUT WE AUDIT THE FED FIRST? YOU BLOODY PUPPET!
NO! NO! NO!
Are you people not paying attention?! We KNOW now what you’re doing!
We KNOW the Federal Reserve is a fraud against the People!
We KNOW the banks ARE the Fed and the Fed IS the banks.
We KNOW the Fed is a scam ran by private families with enormous power and influence.
We KNOW why the Fed has NEVER been audited, even though it’s the LAW. They are ABOVE the law while they are breaking the law.
We KNOW the IMF is the international version of the Fed.
We KNOW the IMF takes advantage of poor nations like pay day loans take advantage of the poor.
We KNOW the “Emergency Spending Supplemental” is thievery masquerading as public representation.
We KNOW the “Emergency Spending Supplemental” includes $5BILLION for the IMF that NO CITIZEN authorized.
We KNOW the IMF will use OUR $5BILLION for more bullying and trickery of poor countries in need.
We KNOW because of sites like http://www.themoneymasters.com
Go. READ why this article is so important. THIS is why we’re in this economic mess in the first place!
It’s their plan. Absolute power over the nation’s finances corrupts absolutely!
When will we ever learn? It’s not like history is SCREAMING at us to FEAR and LOATHE central banks. Wait, that’s EXACTLY what it’s doing!
The Federal Reserve is a central bank, owned and operated by rich banking family dynasties who usurped control of our nation’s money system in an ongoing scam since the Rothschilds invented the scam.
It’s called Fractional Reserve Banking, and it’s killing us!
History says:
“Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.
**********************www.themoneymasters.com
“The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.
**********************www.themoneymasters.com
If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. - Thomas Jefferson in the debate over the Re-charter of the Bank Bill (1809)
**********************www.themoneymasters.com
“I believe that banking institutions are more dangerous to our liberties than standing armies.” - Thomas Jefferson
**********************www.themoneymasters.com
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -James Madison
**********************www.themoneymasters.com
If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations. -Andrew Jackson
**********************www.themoneymasters.com
Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to…provisions [which] would place our currency and credit system in private hands. - Theodore Roosevelt
**********************www.themoneymasters.com
Despite these warnings, Woodrow Wilson signed the 1913 Federal Reserve Act. A few years later he wrote: I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men. -Woodrow Wilson
**********************www.themoneymasters.com
When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” - Napoleon Bonaparte, Emperor of France, 1815
**********************www.themoneymasters.com
Those who ignore history are doomed to repeat it.
END THE FED! Go here: http://www.themoneymasters.com
Reduce the number of government employees watching banks, and empower the group of plutocrats that print our money to supervise financial firms. Exactly the wrong thing to do on both counts.
Cut the “change you can believe” mess. This is serious. Obama isn’t an economics expert. We have to put up resistance to this and make sure it is defeated.
We need to put away the left/right paradigms for a moment and fight together against this mess. We are already slaves to the Fed and this would tighten the shackles.
Blah blah blah. I don’t care. I’m waiting for the system to implode.
It’s just going to get worse, and much more so, before it starts to get better. The sooner you come to accept this, the better off you’ll be in the long run.
So just sit back and enjoy the first row seat to history in the making. It’s not everyday you get to see once great empires crumble.
McClatchy seems to be saying something different.
http://www.mcclatchydc.com/227/story/70192.html
Pathetic. These bought-out, corrupt sumbitches have decided that the banksters will keep the banksters honest. Meanwhile, the US government can’t get the Fed, which is a private corporation, to give up its accounting figures. When do we take our government back?
we don’t… because most Americans don’t know how many States we have in this country.. because most Americans don’t know where their various internal organs are.. because most Americans are seriously over weight, with 40% being obese (at acute risk of serious health problems)..
and most Americans don’t care (ignorance is bliss, they say).
You have to understand a thing to change a thing, and Americans are the ignorant sheeple the top 1% wanted.. so now the country will burn.
don’t forget, the Founding Fathers (and like minded people) LEFT a country that had a very well established “ruling class” and came HERE to start over. The wars faught then were completely different than how they would go now (seeing as how the corrupted government has a standing army that they aren’t supposed to have, for just this reason).. there is no “taking it back”, there’s waiting for the carnage and misery to get bad enough that violent revolution supported by the military. Until then, you’re just a pawn being abused by the ruling elite for their own gains.
END THE FEDERAL RESERVE (PRIVATELY OWNED) BANKS NOW!
PUT THE PRINTING OF OUR DOLLARS BACK IN THE HANDS OF THE PEOPLE WHERE IT IS PUT INTO CIRCULATION WITHOUT INTEREST DEBT WHICH IS THE PROFIT THESE SLIMY BANKERS HAVE MADE OFF US ALL SINCE 1913.
The Feds are robbing us blind .. this is a bank takeover not a new way to organize … unless you are talking about organized crime which is exactly what the Fed is. Private bankers printing our money and selling it to us with automatic interest debt. The Feds have put 9 trillion on their balance sheet over the last 9 months and they have refused to account for it … who did they gave it to ? They won’t tell us …
Either they are a lot more worried about the economy than they are telling and they are pulling out all the stops to save their corrupt system or they are stealing our country out from under us …
Given what we have learned in the last 8 years … I say it’s both with a strong leaning towards stealing.
CONTROL AND OBEY
It’s all tied in together … the private Federal Reserve … the interest debt … our income taxes … wages … credit score … work connected health care …
It’s an elaborate control system rigged to funnel wealth and power to the controlling elite. It’s possible that their greed and need for power went too far and the whole thing is coming apart and they are trying to save their corrupt system.
But it’s more likely as this has been coming for several years, that this is a planned implosion that will consolidate their power as it did during the depression.
As the working class plummets into poverty and becomes saddled with enormous debt they will gain more control. Even while our entire families are driven to desperation they will continue to steal and use us because we let them.
I thought Obama would be different. I thought give him a chance … but it is beginning to look as though we really are the only thing we’ve got. It will be up to us to refuse to go into the dark while they live in luxury.
Bizarre-O World.
After Obama’s been removed for being a fraud and criminal,I hope somebody does a book showing the deceit.double speak and con’s..
Putting Federal in front of the Reserve to imply it’s connected to the US Federal government..
Naming Homeland Security to imply when it’s Homeland Nazi..
Homeland Security was created to strip the powers from the states..
Obama’s writers saying were going left and right in the same speech,when you can’t go both directions…
Spewing pretty words to the American people while we hire lawyers to do the opposite..
Annointing a man with messiah for having black skin..
Maybe the media will display the Jefferson/Jackson trials to debunk this…
He has black skin and has a court date for corruption..
The quoting of another man’s words to imply we are like them…
Taking photo’s by statues of men to imply.
I think Bush’s favorite was George Washington and Obama’s is Lincoln…
The Fed. Exactly who we should give more power too. A quasi-governmental agency with no accountability. AUDIT IT AND END IT!!!
Support HR1207 and S513!
Don’t forget Obama had more contributions from Wall Street than any other presidential candidate.
Now it’s payback time. Just a gang of criminals, the whole lot.
What we need to do is end the fed and put the power back in the hands of the people and not the private banks.
yeah we got change alright: from bad to worse. how is cutting the regulators supposed to solve the problem that cause this mess in the first place. You remember, there was no regulation!!
now he put the wolf in charge of the hen house.
we. are. so. screwed.
As said above, taking away regulators and giving more power to the Fed is the absolute opposite of what should be done. Obama is apparently owned by the banksters that have caused this crisis. These are the same bastards who should have been allowed to fail. They fucked up royally, driven by pure greed. In my opinion, what they did was criminal, yet they extorted money from the US Government under both Bush and Obama to bail them out. They continue to live the lavish lifestyle and escape virtually unscathed. Meanwhile the rest of us are struggling like never before. The bailouts haven’t helped a single American working person. The bailouts haven’t saved a single job. They haven’t created a single job. We are talking trillions of dollars.
Now this. The rape of America continues. End the Goddamn Fed.
Like I said. Time to stop talking and time to start acting. Tell everyone you know and write your congress people and senators and oppose this mess.
This is not the transparency I wanted to see.