Thursday, October 24, 2013
Wednesday, July 31, 2013
Tuesday, June 25, 2013
Wednesday, October 05, 2011
Friday, March 04, 2011
Friday, July 23, 2010
What Wall Street Reform Means Where We Live
Here are a few highlights courtesy of Whitehouse.gov:
- There's now a single agency responsible for looking out for consumers: the Bureau for Consumer Financial Protections. Instead of seven agencies dealing with these issues part-time, one agency will be in charge of establishing clear rules of the road for banks, mortgage companies, payday lenders and credit card lenders.
- Mortgage brokers won't make a higher commission by selling people mortgages that they can't afford. This was a major factor in the recent housing crisis. Now brokers and banks have to take into consideration a borrower's ability to repay before giving a home loan.
- You’ll be able to get a free credit score if you’re denied a loan, an apartment, or a job because of your credit, so you won’t be turned down without knowing why. Right now, you get one free credit report a year, but you can’t see your credit score for free, even if a lender or employer rejects your application because you have bad credit.
- No more bailing out banks with our tax dollars, no more "too big to fail." If a company's in trouble because of risky gambles, it will have to liquidate -- and do so before it can take down the rest of the financial system.
Sunday, April 25, 2010
Friday, April 23, 2010
Common Sense Financial Reform: 2010
From President Obama's financial reform speech, 22 April, 2010
There has always been a tension between the desire to allow markets to function without interference – and the absolute necessity of rules to prevent markets from falling out of balance. But managing that tension, one we’ve debated since our founding, is what has allowed our country to keep up with a changing world. For in taking up this debate, in figuring out how to apply our well-worn principles with each new age, we ensure that we do not tip too far one way or the other -- that our democracy remains as dynamic as the economy itself. Yes, the debate can be contentious. It can be heated. But in the end it serves to make our country stronger. It has allowed us to adapt and thrive.
I read a report recently that I think fairly illustrates this point. It’s from Time Magazine. And I quote: “Through the great banking houses of Manhattan last week ran wild-eyed alarm. Big bankers stared at one another in anger and astonishment. A bill just passed … would rivet upon their institutions what they considered a monstrous system… Such a system, they felt, would not only rob them of their pride of profession but would reduce all U.S. banking to its lowest level.” That appeared in Time Magazine -- in June of 1933. The system that caused so much concern and consternation? The Federal Deposit Insurance Corporation -- the FDIC -- an institution that has successfully secured the deposits of generations of Americans.
In the end, our system only works -- our markets are only free -- when there are basic safeguards that prevent abuse, that check excess, that ensure that it is more profitable to play by the rules than to game the system. And that is what these reforms are designed to achieve: no more, no less. Because that is how we will ensure that our economy works for consumers, that it works for investors, that it works for financial institutions -- that it works for all of us.
White House Photo, Samantha Appleton, 4/22/10