What Real Financial Reform Looks Like - by Stephen Lendman
Be wary when Washington talks reform. Nearly always it's bogus and ends up making a bad situation worse, the likely outcome this time addressing longstanding Wall Street abuses not easily changed at a time tinkering around the edges or papering them over won't work.
Case in point - the House passed "Wall Street Reform and Consumer Protection Act of 2009" (HR 4173) and current Senate debate on the "Restoring American Financial Stability Act of 2010" (S. 3217). This writer addressed both measures on April 1:
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Still a work in progress, the Senate bill will be as bogus as the House one, so whatever reconciliation produces will be another promise made, another broken. Business as usual will persist so don't be fooled - on this measure or any other, including the appalling health care bill that made a dysfunctional system worse, and took a giant step toward ending Medicare, one of the main reasons it was enacted, besides enriching corporate providers.
Instead of restraining financial fraud, House and Senate bills sanctify it. They leave too big to fail banks in place, permit greater consolidation, and let Wall Street casinos game the system with public money, gambling with unregulated exotic and fraudulent derivatives and other securities.
In Washington, the more things change, the more they worsen, and the public always gets scammed - fooled again because power and privilege trump people.
Lobbyists and corporate lawyers write legislation affecting their interests and get precisely what they want, a few public-friendly crumbs added for deception.
Consider a few measures likely to pass or not change:
-- a financial aristocracy will be coronated;
-- Wall Street will keep running the country;
-- fraud and bailouts will be institutionalized;
-- selling toxic junk to unwary buyers won't be touched;
-- excessive executive pay, bonuses and perks won't be curbed;
-- credit agency scams will continue;
-- giant banks, insurers and other financial firms will be green-lighted to get bigger;