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May 20, 2010

Collins slammed on financial reform

Who's side is Senator Susan Collins on?

Admittedly I have not been following the junior senator much while I've been away. Fortunately, Contrapositive has. He finds this Moneywatch item written by popular financial commentator Jane Bryant Quinn:

Stop Senator Collins! She Wants to Cut a Key Investor Protection from the Reform Bill
... Last week, devious brokers found their champion. Collins proposed an amendment to the reform bill, to exempt from fiduciary duty brokers who sell only mutual funds, variable annuities, and certain closed-end funds. Furthermore, the Securities and Exchange Commission could expand the exemption to brokers selling other products packaged by their firms. ...
Wow, what intense, biting criticism from a very mainstream source. It reflects how burned the small investor has been in the financial meltdown by the sharks that view us as little more than plankton in the sea.

Posted by The Owl at 09:59. Filed under: Economy

Comments

Senator Collins? Statement on Passage of Senate Financial Regulatory Reform Legislation

?While the financial reform bill passed by the Senate is far from perfect, I believe it is necessary for Congress to pass legislation that fundamentally restructures our nation?s outdated financial regulatory system to prevent future taxpayer bailouts, strengthen oversight and accountability, and guard against the excesses that contributed to the deep recession that has cost millions of Americans their jobs. This bill represents a significant step toward addressing the serious shortcomings in our financial regulatory system?including the 'too big to fail' phenomenon.

?I am pleased that the bill includes my amendment, which was endorsed by FDIC Chairman Sheila Bair, to impose strong capital requirements on financial institutions. My amendment tackles the 'too big to fail' problem by requiring large financial firms to have adequate amounts of cash and other liquid assets available to help absorb losses during times of financial stress. This will strengthen the economic foundation of these firms and help prevent future economic crises.

?The Senate-passed bill also includes a core reform that I proposed more than a year ago. It would create a council of regulators to identify financial institutions, practices, and products that pose a risk to financial markets or to our economy, such as the lax mortgage lending standards and the explosive growth of credit default swaps that helped trigger the current economic crisis. This council will help prevent regulatory 'black holes' and ensure more effective oversight of our financial system.?

Hmmmmm, no mention of her "no fiduciary responsibility" provision.

Posted by The Owl on May 22, 2010 at 19:41
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