Dodd, Bought and Paid For By Wall Street

Posted by Jason | Posted in Government | Posted on 20-03-2010


The Democrats, who claim to be the party of the little guy, sure do a lot of the walking and talking for the Wall Street bankers. Just one instance is Chris Dodd’s financial reform bill.

Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., raised ’serious concerns’ about a provision in the financial reform bill, released this week by Sen. Christopher Dodd (D., Conn.), that seems to allow the Fed to rescue Wall Street firms if they play a critical role in the financial markets.

WSJ: “We do have serious concerns about other sections of the Senate draft which seem to allow the potential for backdoor bailouts through the Federal Reserve Board’s 13(3) emergency authority,” she told a conference of community bankers, hosted by the Independent Community Bankers Association (the Fed used its authority under Section 13 of the Federal Reserve Act to bail out AIG, injecting over $180 bln).

U.S. policy makers need to end the concept of “too big to fail, ” she added.

In response to Bair’s concerns, who has emerged as the only voice for restoring market discipline and eliminate the market’s perception that some firms are too big to fail, spokeswoman for Mr. Dodd said that that provision will be removed in the manager’s amendment, as the Senate Banking Committee debates the draft bill.

via Dodd Bill Allows Wall Street Firms for ‘Backdoor Bailouts’.

Mr. Dodd’s response? “Oh crap, busted. How did that get in there. Nothing to see here. This is just a misprint to be removed by the manager’s amendment during the debate on the regulatory rigmarole, so you see all is good.” What the hell did he just say? It’s like watching the man on the street corner with his three cups and a ball conning people out of their money who think they can choose the cup with the ball under it.

Luckily for us, Dodd will not be there much longer. Let’s just hope Connecticut sends Peter Schiff to replace him. Peter will do his best to show us all the con.

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