10 Page Summary of the Fin Reg Bill (from house.gov)

Ruby the Liberal

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Sun Jun-27-10 01:23 PM
Original message

10 Page Summary of the Fin Reg Bill (from house.gov)

PDF: http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/comprehensive_summary.pdf

A few interesting things in there:

1. They are specifically addressing Congo
2. The $250k FDIC limit has been made permanent (important for payroll!)
3. "Skin in the game" - mortgage companies have to hold a % of their originations, they can't sell them all off
4. Whistleblower incentives (30% of loot captured)
5. Insurance regulations - prior this was state only

Overall, the bill is quite weak in too many areas (I would have liked to see Glass-Steagall brought back), but does have some interesting points.

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grahamhgreen

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Sun Jun-27-10 01:27 PM
Response to Original message

1. For 3: do you know what percentage?

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Ruby the Liberal

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Sun Jun-27-10 01:35 PM
Response to Reply #1

2. Right now, it is 5%

Not much, but at least forcing the banks to take on some of the risk rather than blindly pooling everything and selling it off.

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kirby

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Sun Jun-27-10 02:18 PM
Response to Reply #2

3. Except there is a loophole...

It says 5% UNLESS the loan meets certain standards. Well, that is exactly what got us into this mess. The debt rating agencies rated all those 'pooled' mortgages to a certain standard.

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Ruby the Liberal

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Sun Jun-27-10 02:22 PM
Response to Reply #3

4. I was very disappointed to see the hands-off approach they took with ratings agencies

That, one would have thought, would have been a given.

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grahamhgreen

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Mon Jun-28-10 01:04 PM
Response to Reply #2

5. Definitely not enough to make them stop. If they make 5% on the sale, they are in the clear.

We need to get back to the bank taking all the risk, as they should since they are the ones originating the loans.

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