ARRA News Service
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. Content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for or by this site - no paid ads - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: editor@arranewsservice.com (Pub. Since July, 2006)
    Home Page
   

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Thursday, May 06, 2010

Top 10 Special-Interest Loopholes in Wall Street Bailout Bill

GOP Leader Blog: The White House rolled out a little-noticed list of “Top 10 Most Wanted Lobbyist Loopholes” yesterday, but . . . conveniently left out a number of loopholes the White House has strongly supported - some backed by key campaign contributors like mega-billionaire Obama supporter George Soros, who reaped untold fortunes by betting against the U.S. economy and then bragged about it to a foreign newspaper ("I’m having a very good crisis," Soros was quoted . . . in 2009, in reference to the profits he made from the financial meltdown).

In truth, much like the backroom deal-laden health care law President Obama and the Democratic Congress forced upon a nation that didn’t want it, President Obama’s Wall Street bailout bill contains a host of special-interest carve-outs and loopholes designed to favor Democrats’ most powerful campaign contributors, bureaucrats, and political allies. Here are some noteworthy examples:

1. The Fannie Mae/Freddie Mac Loophole. The White House-backed bill fails to reform Fannie Mae and Freddie Mac, the government mortgage companies that sparked the financial meltdown after evading even the most modest reforms thanks to their friends in the Democratic Party. For years, Republicans consistently raised red flags about Fannie and Freddie’s financial condition and proposed responsible reforms only to be thwarted by Democrats with deep political ties to the worst offenders.

2. The Soros Loophole for Hedge Funds. The White House-backed bill conveniently exempts hedge funds from the Volcker Rule that establishes investment restrictions on depository institutions, the tax imposed on banks and the massive new regulatory structure being imposed on other financial firms. It should come as no surprise that - as The Hill reports - "hedge funds donate big to Democrats." Chief among those contributors is big Obama supporter George Soros, one of the top 25 richest hedge fund managers.

3. The Bailout Loopholes. The White House-backed bill would - with or without the $50 billion bailout slush fund - empower the federal government to provide Wall Street with permanent bailouts, courtesy of American taxpayers. Under the Dodd bill, the nation’s largest financial firms - including Goldman Sachs, President Obama’s top Wall Street ally - would be eligible for special treatment at the highest levels of government, including resolution authorities and resources unavailable to smaller financial firms. As Rep. Brad Sherman (D-CA) recently said, "The Dodd bill has unlimited executive bailout authority. … The bill contains permanent, unlimited bailout authority."

4. The Job-Killer Loophole. The White House-backed bill undermines small businesses, costing jobs and undermining our economy at a time when we can least afford it. As the NFIB states in an April 26 letter: "Many small business retailers and merchants - such as medical professionals, hardware, electronics, and jewelry stores - struggling through the current economic climate would be subject to these new regulations. … Addressing problems in the financial services sector makes sense, but such regulations should not overreach to include small business or leave small business owners paying for the excess of companies deemed too big to fail." With unemployment hovering near 10 percent, the last thing the economy needs now is new layers of bureaucracy and red tape that restrict financial products and discourage economic growth.

5. The Trial Lawyers’ Loophole. The White House-backed bill is riddled with loopholes that will soon become a favorite tool of class action and consumer protection trial lawyers. Is it any wonder why trial lawyers give so much money to Democrats?

6. The Bureaucrats’ Loophole. The White House-backed bill lets the Securities & Exchange Commission (SEC) off the hook. From Forbes: "The Dodd bill fails to address the glaring weaknesses at the Securities and Exchange Commission that played a central role in creating the financial panic of 2007-2009. Nor does the bill address the SEC’s failure to properly oversee the Financial Accounting Standards Board, whose rulings allowed trillions of dollars of securitized loans to be removed from bank balance sheets and capital requirements and whose mark-to-market accounting rules senselessly wiped out hundreds of billions of dollars of bank capital and panicked the financial markets." (”Obama’s Financial Reform Weak and Ineffective,” Bill Isaac, Forbes, April 22, 2010)

7. The Foreign Bank Loophole. The White House-backed bill exempts foreign-based firms from the Volcker Rule. As a result, as Nomi Prins notes in this column, "European banks could thus expand their private equity and hedge-fund game on our soil, thereby spreading globalized risk."
8. The "Credit Rating Agencies" Loophole. The White House-backed bill doesn’t fix the very serious problem with credit rating agencies. From liberal columnist Paul Krugman: "No, the e-mail messages you should be focusing on are the ones from employees at the credit rating agencies, which bestowed AAA ratings on hundreds of billions of dollars’ worth of dubious assets, nearly all of which have since turned out to be toxic waste. And no, that’s not hyperbole: of AAA-rated subprime-mortgage-backed securities issued in 2006, 93 percent - 93 percent! - have now been downgraded to junk status. What those e-mails reveal is a deeply corrupt system. And it’s a system that financial reform, as currently proposed, wouldn’t fix." ("Berating the Raters," Paul Krugman, New York Times, April 26, 2010)

9. The Backroom Deal Loopholes. The White House-backed bill literally carves out certain groups from being subject to regulation by the new Consumer Financial Protection Bureau. Who is carved out? Trial lawyers, entities (allegedly) regulated by the SEC, manufactured home retailers, and a mish-mash of more. There appear to be no principles that guide who is covered and who is not.

10. The GM/Chrysler TARP Loophole. The White House has backed a proposal to impose a TARP tax on large financial firms that received TARP money, but it specifically excludes GM and Chrysler - both of which received taxpayer money from TARP. Even Treasury Secretary Geithner admitted yesterday that “It’s not going to seem fair to everyone, and there’s no perfectly fair approach,” according to Congressional Quarterly.

Tags: Washington, D.C., White House, top 10, US House, US Congress, Dodd Bill, financial regulation, Wall Street, bailout, special-interest, loopholes To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!
Posted by Bill Smith at 10:48 AM - Post Link

0 Comments:

Post a Comment

<< Home


View U.S. National Debt

Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You will receive a verification email
& must validate you subscribed!

You Then Receive One Email Each AM
With Prior Days Articles / Toons / More


Also, Join us at:
Facebook.com/ARRANewsService


Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru - @arra
#Christian Conservative; Retired USAF & Grad Professor. Constitution NRA ProLife schoolchoice fairtax - Editor ARRA NEWS SERVICE. THANKS FOR FOLLOWING!

Action Links!
State Upper & Lower House Members
State Attorney Generals
State Governors
The White House
US House of Representatives
US Senators
GrassFire
NumbersUSA
Ballotpedia

Facebook Accts - Dr. Bill Smith
Pages:
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire 4 Life
Republican Liberty Caucus of Arkansas
The Gold Standard
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.

Patriots
Exchange
Links

Request Via
Article Comment

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
ARRA News Twitter
As The Crackerhead Crumbles
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Common Cents
Conservative Voices
Defeat Obama's Agenda
Diana's Corner
Greater Fitchburg For Life
Lasting Liberty Blog
Liberal Isn't Amy
Maggie's Notebook
Marathon Pundit
Patriot's Corner
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sultan Knish
The Blue Eye View
The Born Again Americans
TEA Party Cartoons
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
The War on Guns
TOTUS
Twitter @ARRA
Underground Notes
Warning Signs
Women's Prayer & Action
WyBlog

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
Accuracy in Media (AIM)
American Action Forum (AAF)
American Committment
American Culture & Faith Institute
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
CATO Institute
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Declaration of Am. Renewal
Eagle Forum
FairTax
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Freedom Works
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Heritage Action for America
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Intercollegiate Studies Institute
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
OathKeepers
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Truth in Accounting
Union Facts



Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer


Thousands of Deadly Islamic Terror Attacks Since 9/11


FairTax Nation on FaceBook
Friends of Israel - Stand with Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to The Free Dictionary

Powered by Blogger


  • To Exchange Links - Email: editor@arranewsservice.com!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting beliefs associated with the former Arkansas Republican Assemblies (ARRA), this blog/site is controlled and supported by the editor. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2018 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.