Why Obama Won’t Be Able to Reform Wall Street – Excerpt –
As a result, Obama’s rhetoric has not been matched by reality. In his speech today, the president claimed that the actions of his administration have “spurred lending” and “helped responsible homeowners refinance to stem the tide of lost homes and lost home values.”
But, in truth, credit for Main Street is still very hard to come by, and only 12 percent of eligible homeowners have had their mortgages modified by the president’s home ownership plan. Meanwhile cramdown legislation remains lobbyist roadkill (though Barney Frank is vowing to revive it this fall) and mandatory mediation between homeowners and lenders prior to foreclosure is going nowhere on a national level.
That’s why I could picture all the heads of the big banks sitting there today, listening to Obama and smiling — knowing that, in the end, his claim that his administration is “proposing the most ambitious overhaul of the financial system since the Great Depression” won’t mean anything as long as Wall Street’s relentless lobbying and contributing continue to hold sway in the control room of the S.S. America. Read the entire Sep 14 Arianna Hufflington blog
Although I’m a supporter of Barack Obama’s policy, generally (“Yes, we can!”), I assent to Arianna’s appraisement “ultimately naïve speech on financial reform” referring to the full text.
In particular, Obama
also urged support for the far-reaching changes to financial regulation that he has proposed. These include creating a new agency with broad powers to protect consumers of financial products such as mortgages, giving the Federal Reserve new powers to oversee risks to the overall financial system, and obligating firms to meet stronger capital and liquidity requirements… Read more at Washington Post; VIDEO embedded
Addendum, Sep 16
U.K. Prime Minister Gordon Brown and French President Nicolas Sarkozy called for concrete action at the Group of 20 summit in Pittsburgh Sept. 24-25. (Helene Fouquet, Bloomberg)
Supplementary: Global Haplifnet – vanguard topics
haplif – Frank Kalder (HuffPost profile/comments)