Comments on: Has Corker killed the CFPA? http://blogs.reuters.com/felix-salmon/2010/02/24/has-corker-killed-the-cfpa/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DanHess http://blogs.reuters.com/felix-salmon/2010/02/24/has-corker-killed-the-cfpa/comment-page-1/#comment-12224 Thu, 25 Feb 2010 13:57:13 +0000 http://blogs.reuters.com/felix-salmon/?p=2703#comment-12224 It’s looking like there will be no new laws. It seems like America is basically stuck with whatever laws are on the books now. Does that render America ungovernable?

Actually I don’t think so. US Code is already millions of lines long. I have no idea of everything that is in there but surely there are things for everybody!

From where I sit, the problem was never the laws on the books but the enforcement and the ethics of the banks. In the realm of liar loans and misleading loan bundlings, there could be fraud convictions galore. Banks should lose their charters over that. What else? Let’s see, simple fraud, securities fraud times 1000 (front running, false reporting, pump-and-dump or pump-and-short a-la Goldman and MBS), mortgage fraud, fraud related to credit default swaps not backed by an ability to pay, fraud related to so-called currency swaps with foreign governments based on falsified “historical” exchange rates.

The administration has completely taken its eye off the ball. The biggest wave of financial crime in history has just occurred and it is enforcement time. After the Savings and Loan Crisis, hundreds went to prison. The recent crime wave has been much larger. The biggest shock of all is the complete absence of enforcement. A few tens of billions spent on prosecutions would surely by money well-spent.

Surely after a robust round of prosecutions, the level of ethics will rise nicely. Trust me, nothing would do more to boost the standings of pols than the sense that America is still fair.

Truly, if existing laws cannot be enforced, what is the point of even one new law?

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By: johnhhaskell http://blogs.reuters.com/felix-salmon/2010/02/24/has-corker-killed-the-cfpa/comment-page-1/#comment-12222 Thu, 25 Feb 2010 10:17:33 +0000 http://blogs.reuters.com/felix-salmon/?p=2703#comment-12222 good god, dWj has figured it out! If only Chris Dodd’s cronies didn’t all (work for/ loot) “banks that aren’t profitable or well capitalized” then dWj’s proposed reform would pass the Senate by acclamation.

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By: dWj http://blogs.reuters.com/felix-salmon/2010/02/24/has-corker-killed-the-cfpa/comment-page-1/#comment-12219 Thu, 25 Feb 2010 01:45:01 +0000 http://blogs.reuters.com/felix-salmon/?p=2703#comment-12219 One good way to make sure banks are profitable and well-capitalized is to shut down the banks that aren’t profitable or well-capitalized. This can be done at relatively little cost to the consumer.

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