Let a Thousand Regulators Bloom- Owebama nation

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Jennifer Nettles's picture
Joined: 2010-03-01

 A huge MF waste of time and money.These einsteins were in Madolf's office for 8 months.  There was NO COMPANY there and they missed it. This will be a monster Barakcracy that does'nt protect anyone from anything.Politics & Policy August 26, 2010, 5:00PM EST text size: TT

Let a Thousand Regulators Bloom
As agencies begin rewiring Wall Street, job openings abound
By James
Sterngold

Anyone who thought the battle over Wall Street reform ended with passage of
the Dodd-Frank Act and President Barack Obama's July 21 signature hasn't seen
Kayla Gillan's whiteboard.
Gillan, the deputy chief of staff to Securities & Exchange Commission
Chairman Mary L. Schapiro, is in charge of coordinating the commission's
implementation campaign, and she's covered her office whiteboard with dense,
color-coded columns of tasks and deadlines that have already spilled over to
some adjacent poster boards. There is little time to spare. A rule requiring the
registration of financial advisers to municipal governments is due on Oct. 1,
and myriad others must follow in quick succession.
While hotly contested issues like limits on banks' proprietary trading and a
new consumer protection agency got most of the attention during the financial
overhaul debate, the SEC alone will be issuing some 100 rules covering
derivatives, hedge funds, asset-backed securities, and executive pay. The agency
needs to hire 25 examiners right away for a new office of credit-rating agency
oversight.
Rewiring Wall Street does not come cheap. The Treasury hired Booz Allen
Hamilton to help design the legislation's new consumer protection agency and
draw up what could be a $400 million budget next year. The SEC expects to
increase its budget by about 20 percent in the next fiscal year, to $1.2
billion, more than triple its size in 2000. Its staffing is expected to increase
by more than 1,000 people, some 800 just to deal with the reforms, to about
4,700, a 36 percent jump from the head count in 2007, before the financial
meltdown. The legislation "creates a whole new regulatory regime," and
implementation is "a massive undertaking," says the SEC's Schapiro. "This will
fill regulatory gaps that have plagued the system, gaps that have long needed to
be filled."
To keep the heat on the agencies, Amy Friend, the chief counsel to the Senate
Banking Committee, whose chairman, Chris Dodd (D-Conn.), co-wrote the law, has
been holding conference calls with regulators this month to check on their
progress. Dodd plans to hold a hearing with the SEC, the Commodity Futures
Trading Commission (CFTC), the Federal Reserve, and other bank regulators at the
end of September to make certain they're on track.
The effort is daunting in part because it involves writing rules for
businesses that are both huge and currently unregulated, such as some trading
desks for currency, interest rate, and credit-default swaps. "We're talking
about soup to nuts, building a new regulatory infrastructure for some completely
unregulated areas that are multitrillion-dollar industries," says Annette L.
Nazareth, a securities lawyer with Davis Polk & Wardwell and a former SEC
Commissioner. By contrast, Nazareth says, the well-developed regulations for
equity trading took shape over decades. In addition, the SEC must produce more
than 20 studies of important financial issues in advance of writing some of the
new regulations, and so the agency has to take competitive bids, then hire
outside experts to produce the research.
The same drill is consuming the other major agencies. The Federal Deposit
Insurance Corp.'s board voted on Aug. 10 to create two divisions to handle its
duties, including an Office of Complex Financial Institutions, which will need
as many as 200 staff members. The agency has already rented office space in
Virginia to handle expansion. Among the FDIC's new responsibilities will be
winding down large, systemically important banks, securities firms, and
insurance companies that might be on the verge of failing, to avoid the ad hoc
bailouts of the last crisis. Staff planning for the new regulations began months
before the bill passed. Two conference rooms on the sixth floor of the FDIC's
Washington office housed an implementation working group. One team led by
Michael H. Krimminger, a deputy to FDIC Chairman Sheila C. Bair, sketched out
the agency's new role in shutting down failing institutions, while another
deputy, Jason C. Cave, led the preparations for the FDIC's expanded bank
supervision powers.
At the Treasury, Deputy Secretary Neal S. Wolin is spearheading the effort,
including creation of the interagency Financial Stability Oversight Council,
already dubbed F-Sock by the reform cognoscenti. To be led by Secretary Timothy
Geithner, the council will assess systemic risks and plans to hold its first
meeting next month. And at the Fed, Jim Lyon, chief operating officer of the
Minneapolis Federal Reserve Bank, was named to coordinate what the central bank
has identified as 350 projects, including 50 rules, that the law requires.
Even the process for issuing regulations has been reworked in an attempt to
make it more transparent. The FDIC, the SEC, and the CFTC will accept industry
comments before the proposed rules have been written, a shift from the past when
industry generally could offer ideas only after proposed regulations had been
drafted. All meetings between agency staff and outsiders will be posted on
websites, and visitors must provide an agenda beforehand. The comment period,
which allows interested parties to try to influence the final result and can run
as long as 90 days, in some cases will shrink to 30 days.
One thing all the agencies say they will do is fight any effort by Wall
Street to re-debate the legislation. Schapiro says opening the process to the
industry does not mean Congress's intentions are open to question. "The law is
the law," she says. 

loneMADman's picture
Offline
Joined: 2010-05-10

What a rant.  I didn't read a word of it, because the idiot title said it all.

Jennifer Nettles's picture
Joined: 2010-03-01

loneMADman wrote:What a rant.  I didn't read a word of it, because the idiot title said it all.A GD Owebama supporter?   Interesting.   I did'nt think he had any left.Owebama one of the greatest things to ever happen in America.........he woke up the non-political center.    Maybe give us the courage to cut all the MF pork waste entitlements and not end up in Japanville. Jimmy gave us RonnieOwebama gave us the tea party.Cheating to pass Commiecare woke up AmericaGod bless the tea party....................God bless free markets..........................God bless supply side.Nov. 2nd will be monumental.    hope you enjoy the beat down, LONEmadMan.  kma 

BigFirepower's picture
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Joined: 2010-07-09

Nobody really has bothered to read what these new bills include, including myself. But, taxes on r/e sales, surtax on investment income, added regulators, more government employees/agencies is hardly the answer to making our economy better, and/or more efficient. The stimulus that we've seen, has conveniently stayed inside of the govt, and only benefits govt and govt employees. I agree with Jenni Poo, we basically have Jimmy Carter version two, and we're in a game of replaying the 1970s all over again. The end result, should bring a Maggie Thatcher or Ronald Reagan type to office. What the GOP was supposed to do, but didn't, has instead been created by a new party, the Tea Party. Our Nation, is losing to emerging economies in every way shape and form. Our children have no job opportunities. In 2009 the birth rate of the USA was the lowest on record. Unless something changes, we're going backwards, and in about 10 yrs, we could be in a truly terrible position. The blame can be spread in so many directions, for so long, it isn't worth discussing who's fault it is. But, finding our way out of this mess, should be important to everyone. Big governement, commie, socialist, politically correct, notions are not going to work... Smaller govt, small business, less regulation, more personal responsibility, consequences for criminals, that IS the answer.

NOVA's picture
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Joined: 2005-01-11

Did you watch Fox today?

Gaddock's picture
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Joined: 2007-02-23

Jennifer Nettles wrote:loneMADman wrote:What a rant.  I didn't read a word of it, because the idiot title said it all.A GD Owebama supporter?   Interesting.   I did'nt think he had any left.Owebama one of the greatest things to ever happen in America.........he woke up the non-political center.    Maybe give us the courage to cut all the MF pork waste entitlements and not end up in Japanville. Jimmy gave us RonnieOwebama gave us the tea party.Cheating to pass Commiecare woke up AmericaGod bless the tea party....................God bless free markets..........................God bless supply side.Nov. 2nd will be monumental.    hope you enjoy the beat down, LONEmadMan.  kma  Bravo! God Bless America & watch over our troops!

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