Taibbi unloads on the deliberately limp financial reform bill

But Dodd-Frank was neither an FDR-style, paradigm-shifting reform, nor a historic assault on free enterprise. What it was, ultimately, was a cop-out, a Band-Aid on a severed artery. If it marks the end of anything at all, it represents the end of the best opportunity we had to do something real about the criminal hijacking of America’s financial-services industry. During the yearlong legislative battle that forged this bill, Congress took a long, hard look at the shape of the modern American economy – and then decided that it didn’t have the stones to wipe out our country’s one ­dependably thriving profit center: theft.

That theft was the rigging of the game so garbage securities could be passed off as AAA-rated. This created the real estate bubble which eventually burst and cratered the economy with it, not that the criminals responsible cared about that.

And before lockstep liberals go blaming Bush and Republicans for the whole thing.

It was all made possible by two major deregulatory moves from the Clinton era: the Gramm-Leach-Bliley Act of 1999, which allowed investment banks, insurance companies and commercial banks to merge, and the Commodity Futures Modernization Act of 2000, which ­exempted the entire derivatives market from federal regulation.

The two corporatist parties, both beholden heavily to Wall Street, are the problem. Not just one party

As for the Democrats pretending to jump on board financial reform when it became obvious the peasants were about to grab pitchforks, well, this perfectly demonstrates what Peter Camejo said in The Avocado Declaration, that the Democratic Party always opposes change, then tries to co-opt it at the last moment, pretending to be the ally of those wanting change.

With voters seething over Wall Street’s rampant thievery and fraud, the Democrats suddenly got religion about reckless gambling by the financial industry.

But they delivered precious little, didn’t they? Sen. Dodd is a snake who isn’t running for reelection because the electorate became sickened by his sleazy financial dealings. Rep. Frank isn’t much better. A somewhat decent bill was gutted and filled with loopholes while these two aided and abetted the process, pretending all the while to be champions of the people.

But then, the Democratic Party has had decades of experience with that kind of deceit and back-stabbing.

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One Response to Taibbi unloads on the deliberately limp financial reform bill

  1. Connecticut Man1 Mon, Aug 16, 2010 at 10:09 am #

    I’ll note, somewhat sadly, that this move by the DoJ to clarify the motor voter laws, while not the biggest change, is probably the best thing that has come out of the administration since they have taken office. Arguably, it is a self serving move even if it is the right thing to do.

    And that ain’t saying alot about much touted legislation like healthcare reform and financial reform…

    I would’ve said the CPA (where everyone hopes they will appoint Elizabeth Warren to head) would’ve been the biggest and best thing Dems had done if they were more independent and not umbrellaed under an immoral band of kleptocratic elitist bankster thieves.

    I imagine that Taibbi’s piece will be another monumental take-down, given what we already knew about financial reform, with occasional smatterings of revelations to even the most avid followers of this epic fail. I’ll read it this afternoon when I have a moment.