Congress finally passes the banking reform package! This has caused job creation of a magnitude by both Government Agencies and the so-called private banking interest from around the world. Can they control this New Banking Inflation? Apparently most government agencies either have “task forces in place” or will be generating “major Commissions” to create the new banking rules of the road.
To grasp the perspective of “Job Growth and or Re-Assignment of Resources” – The legislation hands off to 10 Regulatory Agencies, with the descretion to create and implement hundreds of new rules. The Commodity Futures Trading Commission has designated 30 “Team Leaders” reports the Wall Street Journal. They are asking for $45 million bucks for new staff!
Meanwhile the banking sector, J.P. Morgan Chase, for example has assigned more than 100 teams to just examine the new legislation. “Future’s Traders” with a porfolio of over $100 million dollars will have to register with the SEC. The many lobbying interest are going to be out in force – seeking holes in the new legislation. Between those and some bureaucrats that will be affected by “influence peddling” by the private sector…it is going to become a very interesting “play out”.
The many complexities, rules, regulations, fees, fines and punitive as well as possible criminal proceedings for non-compliance may take several years to complete. Perhaps something as minor as “caps” on ATM fees may be a net plus for consumers. Forcing the likes of Goldman-Sachs and all the other “biggies” in Global Banking to regulate their unbridled leverage in Hedge Funds, Derivatives and Specialty Investment Vehicles will be a net plus for everyone but those previously “TEB’s” – “Trader’s Earning Billions – a year!”
Our current Global House of Cards Financial System – has much to rectify – including: “De-Leveraging of all Property prices”, “Bogus – Liar Loans” as well as 2 to 3 thousand percent profits on “Unregulated Hedge Funds”. Will this legislation solve all the banking issues, be able to create new jobs, straighten out ethical abuses around the Globe or halt “Emerging Countries” from stealing away American jobs? One thing is for sure: Without some major Regulation, our current system is and was “totally unsustainable”. However, how will this all effect Research and Development allocations by companies? How about new technology and new jobs in general?
There are threats from both sides on the value or excessive pain that will be caused to Banks and consumers from this attempt to “fix it – cause it’s broke!” We will see! Lot’s of money will be passing hands in this process and it will require serious Investigative Oversight by all of us to make sure that the “Greed Leads!” philosophy will not continue or prevail!
Leave a Reply