Comment on Financial Reform Implementation
August 12, 2010
To: Mr. President, FDIC, Elizabeth Warren, Leaders of Congress, Spinners of all thoughts.
Bank system restructuring, Tarp oversight, and the return of money borrowed ....
- Go back to the original set up for home loans ... 20% down and must have the necessary income to make all payments.
- No bundling of mortgages ...
- The bank that wants to sell off their mortgage, on a property, must guarantee the mortgage and provide appropriate links as to the origination of the loan and each person who purchases the loan.
- The banks have to set up a "Mortgage Reserve" equal to 50 percent of the value of the loan or debt ...
- All loan brokers must be licensed by the Federal Banking system that sets up the lending agencies ...
- Get rid of Fannie Mae and Freddie Mac ... only need one agency to guarantee loans ... remember each bank is now going to guarantee the loans ... or else Fannie Mae and Freddie Mac must be required to inform the public about any financial difficulties that they may be having. In the event that there is some sort of financial collapse within either of these companies, U.S. taxpayers must be informed could be held responsible for hundreds of billions of dollars in outstanding debts.
- An aside .... Companies that make investment grade ratings must never be paid by the companies they are rating ....
- Go after the leaders of Moodys, Standard and Poors, Fitch.
- Moody's, Standard and Poors, and Fitch should be held responsible for the bond ratings that were factious. They should pay severe penalties for their improper evaluations ... the leaders at the time should be thrown in jail ... after a somewhat fair trial ...
- Why was congress not informed when the Administration ... treasury... the Fed ... Mr. Barnake ... and other US Government agencies like the SEC lead by Mr. Cox ... felt something was not functioning correctly ... these Governmental Departments, had the fiduciary responsibility to go to congress and tell all and ask for corrective legislation ... all the high-paying officials were negligent ....
- Why didn't the appropriate congressional committees, that oversee the actions of business, ask for a session to investigate the problems ???????????? What happened to the oversight given to the financial committees and the governmental agencies???
- Please stop the double speak ... To Big To Fail ... is totally outrageous ... what you really mean is The company is To Big to Not Bail Out ... or ... if we don't bail out this stupid company we will cause a major employment failure around the country ... and maybe around the world ... no more double speak ...
- The Madoff type scandals must be stopped before they occur ... what were the missing controls??
- If a bank accepts money from the Government through the Federal Reserve or Treasury, than that is similar to FDIC taking over a bank. Hence, the government agency making the loan can set the restrictions, along with removal of executive of the bank.
- Must remove the Gramm-Leach-Bliley legislation created under the Clinton Administration that permitted the tearing down of the wall, built by Glass-Steagall, separating banks that did risky investing from those that did basic lending. (The mingling of those two helped create a cascade of bank failures during the Depression.) Thus were born Citigroup, Bank of America and J. P. Morgan Chase, behemoths that owned bank branches, bought and sold stocks and shepherded corporate mergers.
- http://www.google.com/search?q=Bank+deregulation&rls=com.microsoft:*:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7HPIA_en This link investigates the reasons for the failure of our current financial system.
- Remove the extreme effects of the Reagan and Clinton administration and the congressional legislation to deregulate Banks and Financial Institutions.
- The Federal Reserve must come to congress to set up appropriate legislation aimed at preventing conflicts of interest when some directors of its 12 regional banks own shares of bank holding companies supervised by the Fed.
- When the TARP money is returned, at least 50% should be taken out of the Bailout system that was set up. Note: legislation may have to be set up to modify the use of returned TARP money.
- The credit card system has to be set up so there are no bailouts for banks issuing credit cards.
- The United States Government ... "We the People" ...will not forgive any of the debt owned by banks that accepted Bailout money or the automobile companies accepting Bailout money.
- Make sure the "Bank Stress Tests" are valid. Don't create a more dangerous financial situation by having the government and accounting rule makers try to he the banks look their best. If banks recreate a false profit then another banking crisis will occur and hence make the U.S. economy worse. As long as lenders are stuck with bad loans, they can't provide new money to consumers or corporations to fuel a potential recovery. The banks may look pretty, but they'll be zombies until they clean up their books. Mr. Yalman Onaran is concerned about Bank Profits from Accounting Rules Masking Looming Loan Losses. The link to Mr. Onaran's opinion follows: http://www.bloomberg.com/apps/news?pid=20601109&sid=alC3LxSjomZ8&refer=exclusive
- Think about combining the Federal Reserve, FDIC, Treasury under one umbrella to regulate the Banking System. That will force the various agencies to communicate so that we will prevent the debacle of the Banking and Financial system.
- Establish appropriate Regulations developed for the International financial system by the G-20.
- Go after the Washington Mutual type Bank officers that caused the failure of "Their Banks". Investigate all the leaders and officers of the Banks that were bailed out by "We the People"
- Remove the loophole for Credit Card companies in terms of paying off the charges applied to portions depending on the interest rate charged. The minimum amount paid should be used to pay down that part of the debt with the highest interest rate. The credit card statement must clearly describe how the minimum payment is applied to paying down the debt on the card. For sure the loophole must be removed as to how the minimum payment is applied.