Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Three provisions remain on the table as the House and Senate conference committee negotiates the final provisions of the financial reform bill this weekend. An Associated Press analysis by Daniel Wagner discusses their likelihood of being included in the final draft:
These provisions are opposite in their future impact. The parts that will likely be deleted, the derivatives provision and the Volcker Rule, would shrink the big banks so that future bailouts would not be necessary. The part that will be kept, the institutionalization of bailouts, would create a kind of fascism that will eventually destroy the Federal government's credit rating after corrupted government reglators fail to close debt ridden banks in timely fashion.
Secretary of the Treasury Timothy Geithner believes strongly in the institutionalization of bailouts. But when he tried to sell the international community on the idea of a global bailout fund at last weekend's meeting of G-20 finance ministers, he was rejected. Reuters' reported: "ministers abandoned the idea of a universal levy on banks to pay for future bailouts after divisions proved irreconcilable."
Journal of Economic Literature:
Atlantic Economic Journal: