The Frank-Dodd act is with us (the US), and one day it will be good.
In a society where enormous funds are assembled in all sorts of ways society should have a right to know what is going on. What are the owners doing with their money and are they thinking of the wellbeing of society or just private profit. Are they milking us? Is there systemic risk here? Are they breaking the law? The amount of money available, the direction of their use should generally be known.
Things may get out of hand – society may be hurt. Greed is a dangerous associate. The many financial crises we have are caused by somebody and the taxpayer should not carry the can.
Mr Obama have made into law the Dodd-Frank Act as part of an overhaul of the US financial system, helping the citizens of the US – the common people.
A new era of bank standards is coming – the systemically significant companies shall be looked into – maybe even internationally. Strong capital standards in the financial system is the aim.
The action on financial reform now goes to the US Treasury and their regulatory agencies, which will have to decide which companies should be called “systemically significant” and face higher standards of capital reserves and supervision.
There are complaints – The US loses out to the rest of the world, there will be kidnappings….
New functions are coming: A new liquidation authority that does not get the money from the taxpayer, a Consumer Financial Protection Bureau, strengthening of the fraud function, registering with the SEC if you are not a family office,
And worldwide – yes let us have the same rules everywhere – more insight, more public information.
They must then provide the regulator with details, with much of the information made public. Exemptions are made for family offices, about 5000, blood or marriage relations.
This is ongoing work – champions and critics are alive. But remember – no more systemic failures, please.
The Dodd-Frank Act recognizes the shadow banking system as a systemic risk, and that must be seen into.
More safety is good for everybody. Much good work must be done before it is all triple A.
Here we go – Obama and Geithner are the champions.
Murkyness – let us take it away – let the light shine in all the dark places.
