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Trump trying to water down already watered down Dodd-Frank

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Comments

  • WeakarmCobraWeakarmCobra Posts: 4,077
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    2001400ex said:

    Good

    Why?
    Race likes financial meltdowns like in 2008 and the savings and loan deal in the 80s.
    Financial meltdowns like 2008 are the best buying opportunities.
    yeah if you got the liquidity to do it, but most of the fuckers here live in their dads basement
  • Dude61Dude61 Posts: 292
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    Good

    DF imposes a massive regulatory burden, decreases capital available for lending, punishes risk-reward tradeoff in the pricing of credit products, and increases costs all around. None of which addresses the problem of 2008: gatekeeping the shit credits out of the system that ended up polluting the entire system (looking at you WAMU, countrywide and citi capital).
    We really need a new Glass-Steagall to impose a firewall between traditional banking and speculative investment banking. Dodd Frank does not provide this protection.
    CirrhosisDawg
  • salemcoogsalemcoog Posts: 6,222
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    Well. The meltdown was due to allowing banks to package liars loans and 150% Loan to value loans as A paper on the market. Not sure Dodd Frank would have saved us from that end run.
  • 2001400ex2001400ex Posts: 11,233
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    I think a few of you actually need to get educated on Dodd Frank. It's spectacular to watch you argue about something you truly know nothing about.

    https://www.google.com/amp/s/www.cnbc.com/amp/id/47075854

    Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.

    The Volcker Rule is part of Dodd-Frank and prohibits banks from owning, investing, or sponsoring hedge funds, private equity funds, or any proprietary trading operations for their own profit.
  • Dude61Dude61 Posts: 292
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    edited October 10
    2001400ex said:

    I think a few of you actually need to get educated on Dodd Frank. It's spectacular to watch you argue about something you truly know nothing about.

    https://www.google.com/amp/s/www.cnbc.com/amp/id/47075854

    Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.

    The Volcker Rule is part of Dodd-Frank and prohibits banks from owning, investing, or sponsoring hedge funds, private equity funds, or any proprietary trading operations for their own profit.

    If you dig into the details of the Volcker Rule, it does not prohibit prop trading, only paying large bonuses on prop trading (score one for Wall St.) In addition banks can still operate hedge funds, but must show how they are reducing risk.

    The reality is there is over $300 Trillion in notional value of CDO's on bank balance sheets. $6 Trillion in deposits and $50 Billion in FDIC insurance.

    Dodd Frank has done nothing to mitigate systemic risk in the bank system.
  • 2001400ex2001400ex Posts: 11,233
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    Dude61 said:

    2001400ex said:

    I think a few of you actually need to get educated on Dodd Frank. It's spectacular to watch you argue about something you truly know nothing about.

    https://www.google.com/amp/s/www.cnbc.com/amp/id/47075854

    Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.

    The Volcker Rule is part of Dodd-Frank and prohibits banks from owning, investing, or sponsoring hedge funds, private equity funds, or any proprietary trading operations for their own profit.

    If you dig into the details of the Volcker Rule, it does not prohibit prop trading, only paying large bonuses on prop trading (score one for Wall St.) In addition banks can still operate hedge funds, but must show how they are reducing risk.

    The reality is there is over $300 Trillion in notional value of CDO's on bank balance sheets. $6 Trillion in deposits and $50 Billion in FDIC insurance.

    Dodd Frank has done nothing to mitigate systemic risk in the bank system.
    Before I go any further. I'd like you to explain what notional value means. Because, until you used Google, you'd never even heard that term.
  • doogiedoogie Posts: 5,002
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  • 2001400ex2001400ex Posts: 11,233
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    doogie said:

    Fuck off liar

    Didn't think you'd know what it means either. But that $300 trillion number looks scary!!!! Be afraid. Even tho if you understood what a notional amount is, you'd know that number, while most likely extremely exaggerated, is also meaningless.
  • Dude61Dude61 Posts: 292
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    JPM, Citi and Gold in my Sachs have $140 Tillion in off-balance sheet CDO's alone. With the zero interest rate policy of the Fed, banks are engaging in leveraged CDO products once again to juice returns.

    The only thing worse than operating with high leverage is operating with high off-balance sheet leverage.

    The one law that can protect depositors from runaway banker greed is Glass-Steagall.
  • 2001400ex2001400ex Posts: 11,233
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    Dude61 said:

    JPM, Citi and Gold in my Sachs have $140 Tillion in off-balance sheet CDO's alone. With the zero interest rate policy of the Fed, banks are engaging in leveraged CDO products once again to juice returns.

    The only thing worse than operating with high leverage is operating with high off-balance sheet leverage.

    The one law that can protect depositors from runaway banker greed is Glass-Steagall.

    While you can repeat numbers you read off zero hedge or wherever. That number for CDOs includes things like interest rate swap agreements, which means it's severely inflated and meaningless. Which is why it's "off balance sheet". Not that you know what that means, but true off balance sheet shit is like what Enron did with entities housing debt in unaudited shell companies. That's not what this is.

    I do agree that the glass steagal repeal needs to be looked at, that's not where the current issues are and that won't solve your faux CDO off balance sheet crisis.
  • RaceBannonRaceBannon Posts: 25,757
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    Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.

    Thanks to Dood Frank lenders will no longer be going into poor folks homes and forcing them at gun point to sign bad loans.

    Have the government tell lenders to lend to bad credit risks and the lender charges more for the money. Hondo FS thinks that is somehow illegal
  • 2001400ex2001400ex Posts: 11,233
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    edited October 10

    Dodd-Frank is also geared toward protecting consumers with rules like keeping borrowers from abusive lending and mortgage practices by banks.

    Thanks to Dood Frank lenders will no longer be going into poor folks homes and forcing them at gun point to sign bad loans.

    Have the government tell lenders to lend to bad credit risks and the lender charges more for the money. Hondo FS thinks that is somehow illegal

    https://georgewbush-whitehouse.archives.gov/infocus/achievement/chap7.html

    Missionaccomplished.jpg
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