Look What Surprises They Snuck Into The Financial Reform Bill

By Michael Snyder, on July 29th, 2010

Even just a decade ago, major pieces of legislation in the U.S. Congress would be just a few dozen pages long. But today, it seems like every time Congress passes an important bill it ends up being over a thousand pages long. In fact, the final version of the new financial reform law was over 2,300 pages. Overall, as we wrote about extensively in a previous article, this much-ballyhooed new law does a whole lot of nothing, but it turns out that lobbyists and special interests were able to insert a few nasty surprises that we are just now finding out about. But it was the same thing with the health care reform law. It was only after it was passed that most of us learned that it contained a provision that will force U.S. small businesses to collectively produce millions more 1099 tax forms each year. Now small businesses from coast to coast are screaming bloody murder about that provision but it is too late – the law has already passed. Unfortunately, there are some surprises in the recently passed financial reform law that are nearly just as bad.

So just what are those surprises?

Well, first let’s talk about what the financial reform law does not do. The financial reform bill was supposed to “fix” Wall Street and the financial system, but it did not do much of anything….

-It does nothing to address the problems with Fannie Mae and Freddie Mac.

-It does not eliminate “too big to fail”.

-It does absolutely nothing to eliminate the horrific bubble in the derivatives market.

-It does nothing to reform the organization most responsible for the recent financial crisis – the Federal Reserve. In fact, this new law actually gives the Federal Reserve even more power.

But it does create a ton of new paperwork and a bunch of new government organizations.

Oh goody!

But was there any major law that Congress has passed over the last several years that did not increase the size and scope of government?

That is a good question.

In any event, let’s get to some of the nasty surprises contained in the new financial reform law….

*Barack Obama has been running around touting how this new law will “increase transparency” in the financial world, but it turns out that a little-noticed provision of the new law exempts the Securities and Exchange Commission from virtually all requests for information by the public, including those filed under the Freedom of Information Act.

Not that the SEC was doing much good anyway.

But now the SEC’s incompetence and the nefarious actions of those they are investigating will be hidden from public view.

So what makes the SEC so special that they get to block the public from seeing their records while other government agencies still have to comply with FOIA?

Talk about ridiculous.

But there is actually another little surprise contained in the new law that is even more nasty….

*Another little-noticed section deeply embedded in the financial reform law actually gives the federal government the authority to terminate government contracts with any “financial firm” that fails to ensure the “fair inclusion” of women and minorities in its workforce.

This section of the law, written by U.S. Representative Maxine Waters, is 1,261 words long and it establishes “Offices of Minority and Women Inclusion” in the Treasury Department, the Federal Reserve, the Securities and Exchange Commission and more than a dozen other finance-related agencies.

The directors of these new departments are tasked with developing standards that “ensure, to the maximum extent possible, the fair inclusion and utilization of minorities, women, and minority-owned and women-owned businesses in all business and activities of the agency at all levels, including in procurement, insurance, and all types of contracts.”

The maximum extent possible?

That sounds pretty strong.

So what kind of firms does this section apply to?

Well, according to Politico, this section is going to apply to just about anyone who has anything to do with the financial industry….

This applies to “services of any kind,” including investment firms, mortgage banking firms, asset management firms, brokers, dealers, underwriters, accountants, consultants and law firms, the legislation states. Every contractor and subcontractor must now certify that their workforces reflect a “fair inclusion” of women and minorities.

The truth is that this small section of the law represents a fundamental change in employment law in the United States.

And it is written so vaguely that firms are going to be tempted to go above and beyond in complying with it just so they are safe. In fact, many analysts are already saying that it could lead to an unofficial quota system.

In any event, hundreds of new federal government bureaucrats will be watching to make certain that these vague new regulations are fully implemented.

*It also looks like the new financial reform law is going to end the era of free checking accounts.

Why?

Well, it turns out that the new law really limits the amount of fees that banks can charge and the way that they charge them.

So banks have got to make their money somewhere. Wells Fargo and Bank of America have already announced new fees on checking accounts, and other banks are expected to follow their lead shortly.

What a mess.

Can’t Congress do anything right these days?

At this point Congress is so incompetent that if they would just sit there and do nothing that would be a vast improvement.

But that isn’t going to happen.

So what do you all think about this new financial reform law? Feel free to leave a comment with your opinion below….

TnAndy

You know, if it was a requirement that Nancy Pelosi, and the Prez had to sign each and every page of any new legislation, either laws would get a LOT shorter, or they would have a lot less time for new mischief !
Grumpy

Did anyone really think that this CONgress would understand the content or implications of yet another 2k-page bill they neither wrote nor read? Was anyone fool enough to think that the people that created the problem would know how to fix the problem (assuming they even knew what the problem was)? Do any of the people NOT understand that every time something is politically ‘reformed’ via legislation that it will do the exact opposite of what politicians claim it will?

And, finally, does anyone NOT understand that the entire fed.gov (executive, legislative, and judicial) is corrupt to the core, with nearly every member thereof being a well-bribed whore?

Voting them out is pointless – new faces will play the same games, pretending to be part of a democratic republic when they’re really the oligarchs of a fascist government. The same ‘media’ talking heads will argue over the same insipid points, never reporting on real news that affects the freedom of the citizenry – and all the while protect and promote the status quo.

And what of the citizenry? Dopes in Chains. Don’t be fooled by government reform that isn’t.
sharonsj

I agree with Grumpy and you can change my name to “Cranky.” Everything these fools do just makes me crazier and more frustrated. I would love to vote for a third party, if there was one. But we aren’t given much of a choice: spineless Dims or loony Rethugs.
Spencer

Change you can believe in! Let’s call this the New-er deal
Sicken Tired

We need to get term limits and remove lobbyist altogether. This is just insanity run amuck
Maria

What do you mean, “Can’t Congress do anything right these days?”

Do you think “right” means for the people? LOL .That isn’t their goal. Are you kidding? We all know, they are there to help themselves…and their cronies. They are doing what they have done for decades…lie, cheat and steal among other things. They have broken every Commandment there is to get where they are…and what they want.

What is happening to this country is no accident. The Great American Experiment is over.

UNLESS….”WE THE PEOPLE” UNITE AND FIGHT!
Rolando

The bill is a joke, I bet that none of those who voted for it have finished reading it, if they’ve actually even started.

As “Grumpy” above says “Voting them out is pointless”, so a different approach must be taken. To fight them you must do a small contribution such as stop using their services, withdraw your money and spread the word.

After all, exposure is one of the biggest fears of those who dwell in the dark.
Fred

I would argue that congress is NOT incompetent. They’re simply bribed with campagin contributions to vote a certain way. This money is tax-free for them, as well. Some of them are comprimised to vote a certain way or some dirty aspect of their personal lives will be made public.

And, the power elite (i.e., Council on Foreign Rlations, Trilaterals, Bilderbergers, etc.) behind the bribes are extortion not incompetent either. They are the one’s writing these types of legislation. But it doesn’t make sense to the Average American until they view things in context with the elites’ ultimate goal: bring down the world’s most powerful economy so it’s citizen will accept World Government.

When you starting looking at their actions with this backdrop, everything makes perfect sense.
Matt

The system is far too corrupt to reform now. The only way we are going to fix this country and get back to the Constitution is by revolution. Bring it on, the sooner the better, for the sake of our children and their children.
francis marion

Grumpy, I agree. But if despair or insurrection are the only choices, count me out:
1) Get your own house in order. Get ready spiritually and financially for whatever may come. Patriots are the ones that take care of themselves and their families. Needs before wants.
2) Network with your friends family and neighbors. Educate them and come up with a plan for mutual assistance. Strength in numbers.
3) Let your representatives know where you stand and that you intend to vote. Nothing terrifies a politician more than a motivated and informed voter.
4) Don’t be afraid. Fear can only lead to bad outcomes. Prepare instead. And let fear-mongers know that they are making themselves small with their defeatism.
5) Relax. Sit down with a good history book and find out why this is not the worst its ever been and how people can come through adversity stronger and better. America will endure.
lostinmissouri

I think we are close to “the economic collapse” that this blog is all about. I agree, “the system is far too corrupt to reform”.
That is why many are turning to gold and silver. It’s a way to store your wealth, outside the corruption.
Pull your money from banks and deal in cash as much as you can. Put your savings in gold and bury it. WE CAN WAIT THEM OUT. It won’t be long.
oddsox

want full employment?

eliminate payroll taxes

replace them with a non-regressive 3% National Sales Tax
richard

I forsee the day when 1. a frustrated and totally fedup citizenry will march on Washington, surround it, place siege to it and offer terms of “unconditional surrender” to these political traitors.

Or 2. The State governments begin to ignore and nullify the idiotic laws passed by the Federal Cockroaches. Arizona has shown a proclivity towards this already over immigration enforcement and hosts of other states are reasserting the 10th Amendment Sovereignty that all powers not granted to the Federal Government, as oulined in the US Constitution, are reserved to the states and the people.

If the Federal Government keeps up this chicanery in cahoots with special interest/lobbyists of elitists from the CFR/Trilateral/Bilderberger looting consortium, WE THE PEOPLE will be re-enforcing the words of the Declaration of Independence.

“When injustice becomes law, resistance becomes duty”. —Thomas Jefferson
Pappy

Anyone who witnessed Maxine Waters questioning former BAC chief Ken Lewis got a good look at just how ignorant that woman is regarding financial issues. Rep. Kanjorski, the chair, actually interrupted her and asked her to submit further questions in writing as she was making a fool of herself and a farse of the hearings. Lewis was flabbergasted at her irrelevant questions and, though he’s no hero, he’s to be admired for his restraint in not calling her the blithering nincompoop she showed herself to be.
Joe in JT

I remember when the word “minorities” included women.
Now the feminists are very specific. Minorities means blacks, and women means people who roll their own tampons and kick start their vibraters.

Once again, as a white male Anglo-Saxon, you can just forget about a job with government. Don’t even bother taking a ticket or getting at the end of the line, you’re not even going to be considered. As a matter of fact, being a white male, you have alot of nerve applying for a government job. You evil work a holic who invented the rocket and put people on the moon. You evil white boy who invented the computer and the internet(no offence Al Gore). You evil white cracker… who flew the first airplane in North Caronlina 100 years ago. You racist Thomas Edison, Albert Einstien and Henry Ford…you didn’t hire enough bitches!!!
http://Theeconomiccollapse Dang

Yes another down fall for america. The last step off the cliff i see is coming soon. Made in america is becoming a bad name. An is making china look good. Only because made in america is made by the u.s. gov. The people are almost out of the picture now. No say no do. And the gov puts a price tag of debt on you. The time has come to default on the u.s. gov debt. Kill off excess gov. Making gov live within its yearly budget. Make gov run like a bussiness. 3 years of red ink an your out. An not just out the debt you make you have to forfiet all your assets. The only thing that could possibly kill capitalism? Is the inner corruption of gov.
Something Wicked This Way Comes

You people don’t get it. Offering well intentioned solutions. They don’t care about your solutions. They have an agenda.

This is no longer a government or a nation governed by the people, for the people. This is an oligarchy with a bunch of sheep. Where they pat you on the head, tell you to send in your taxes, and shut up. That is good citizenship.

Do you need proof? Nothing proves my point better than to watch the will of the people, Arizona’s immigration law, die a quick death. D.O.A. Catch my summary here, loyal subjects.

http://thecivillibertarian.blogspot.com/
juryrocket

Look like the innocent flower of reform, yet beneath we find the serpent of Democratic social agenda (office of minority and women, too PC to fail, CRA on 2300+ pages of steroids), redistribution, and unprecedented expansionary federal control over the private sector (financial oversight council to ensure improper levels of “risk” are not allowed). This financial deform, like all of Obama’s bills, are a tragic travesty eating away at the American ideals of freedom, opportunity, and individualism. Here’s a good satire:
http://www.youtube.com/watch?v=nvabFm-cE9c
Fedup

You forgot another little nasty provision that was put into this law… Making it illegal for lenders to offer Yield Spread Premiums to a mortgage broker. This will, in effect, put most mortgage brokers (an entire industry through the nation) out of business. While banks are not subject to this, what is even more laughable is the fact that they are no under obligation to even disclose the rebate they make on the back of loans. A successful lobbying provision so obvious, it laughs in the face of small business mortgage brokers through our country. And to rub it in even more, auto dealers are exempt.

So the financial reform bill does incredibly little to limit Wall Streets greedy abuses; it doesn’t even have the balls to reinstate the up tick rule or other safe guards against naked shorting and the such put in place from the Great Depression. But don’t worry, it will lead to higher fees for all of us. And sadly, put an entire industry that has adapted and survived since the financial collapse out of business.

Our government stands so little for the people, and so much for the special interest money flowing into the joke that is congress, that it leaves the average american wondering if the word “fair” should be eliminated from everyday life.
Mike Bergstra

Interesting article, quite surprising for an European point of view, because if in France we have for a long time a really high unemployment rate, for qualified people (with a master degree, which is quite the standard here to get a good job), is about 5%.
I am going to graduate in September and most of my friends already have signed a job contract. Point is that we are graduating for the equivalent of an ivy league university (a Grande école http://en.wikipedia.org/wiki/Grandes_%C3%A9coles )
and with an useful degree stuffed of basic science, mathematics, some business skills so that we can demonstrate our usefulness to a company.
Myself I am going for a PhD in the US but with a full sponsoring of a French company (and a commitment to work for them after for some times)

In some very technical fields the lack of good specialists is so acute than if you are good at your job you can get everything you want.

I used to live for a while in the us and I was always surprise of the college degrees people were pursuing, most of them clearly useless to me, and driving directly to unemployment in France as well.
I do believe that the economy downturn only reveals that most of the popular college degrees are useless. It is not much a problem of graduates, but also a adaptation of colleges to the job market. Hopefully the crisis will force them to go in the right direction. I am also convinced that most people should not go to college.

We hear a lot of craps about the knowledge economy but you can’t separate completely the conception, the gray matters jobs and the hand work. I you go back 10 years ago, it was really trendy to outsource all production tasks to the third world and to focus on the marketing, branding and design, now we see that also those high skilled jobs are going abroad.

In the future we will clearly need both kinds of job in the same place. However it is clear to me that the traditional industry is completely destroyed in the US much much more than in Europe, where there is still something to build on again.

However, I think that believing that small repairs jobs, such as shoe repair and so on is not a good way to go right now, we still have a lot of those small business in Europe, but they are struggling because today most of made in china, shoes, clothes, domestic appliances are not designed to be repaired and to last giving a really hard time. Maybe in the future this will change but as of today, you should think twice before opening this kind of business, the job is clearly not the same it was 20 or 30 years ago.
http://www.damonladd-thomas.com Damon Ladd-Thomas

Once again Government Regulation that burdens the consumer and the small business community.

No surprises, here.
Joe in JT

Notice the picture of Nancy Pelosi signing the bill with Barney Frank and Dodd looking over her shoulder. It reminds me of an ignorant car buyer who just agreed to pay 10,000 over sticker price for a lemon. The salesmen are Frank and Dodd, and the sucker Nancy Pelosi is signing her life away on the dotted line. Notice the smirk on Dodds face, just like the car salesman Joe Isuzu….birdie!
http://bgamall.bravejournal.com/ Gary Anderson

We knew it would not force the TBTF banks to fail. However, we need to think a bit about Fannie and Freddie. Their demise could mean the end of the 30 year mortgage. Now, this would be an interesting turn of events.
CHAOTIC TIME

The entire episodes are happening right in front of your eyes. You know EVERYTHING IS FIXED and the whole system has been set up that way.

Google collected information and video taped all the streets in America not for your convenience but to control the masses, so the elites could give orders from their bunkers.

******** DURING PAST ELECTION VOTING MACHINES WERE TAMPERED WITH AND ARE EASY TO MANIPULATE. They can be programmed to show any number that they want. They can set the count at a higher number instead of from 1 !!!!! *********

The viewing numbers or ratings of the LIBERAL VIDEOS are much, much higher than the CONSERVATIVE VIDEOS.

They are controlled at every websites. Check for yourself when you click it does not advance the number or even it did it reverse the same number after you left. Open any two browsers and test it for yourself. So many have complained and nothing has been done.
Pappy

Gold and silver are going to be useless. They can only be exchanged even now at specific locations and with specific people.

What do you think is going to happen when it all collapses, that these very limited places of exchange magically get “better” somehow?

If they control the money supply now, and are passing new ways to tax everyone to death, and destroy small business and force everyone to complete new forms, do you honestly suppose that your gold or silver will remain exempt, or that they won’t control all these exchange outlets?

Do you really think you’re going to barter your gold? With who? Nobody but “dealers” accept this useless stuff now. They are the “banks” for gold in other words — and will be just as controlled as our corrupt banking system already is.

This isn’t going to magically improve either, the dealers will be restricted, or outlawed or part of government surveillance operations. Black market “trade” in gold and silver is also going to rather minimal for the same reason — the person you traded with is going to have a hell of a time getting rid of their gold (for stuff they also need).

Anybody holding gold or silver is a target. They will be the ones that the government will suppress through legislation and very probably, confiscation. This includes dealers, coin houses and individuals. Anybody that think they’re going to be “allowed” to play bank outside of the collapsing system is absolutely nuts.

You can’t eat gold or silver either. You can’t even buy a loaf of bread TODAY with gold or silver anywhere in this God-forsaken country, it won’t be any different when it all falls apart. The only true investment now is going to be in food. Nobody will exchange food for gold or silver now or then — food will be how they control everyone through rationing.

Now to the “fix” of the broken system: There are still an awful lot of people buying into the notion of “reform”. I repeatedly point out that no such reform exists — where is the proof today that it even remotely works? Sure, it’s been tried, a thousand times, with a thousand failures. You cannot fix what is inherently broke, or there would be PROOF in abundance, already, but no such proof exists.

Revolution is going to happen. I repeat, revolution is going to happen. There is no other outcome to all of this. There is already a groundswell of people gearing for this. And most of you have read to buy your guns — buy your food FIRST. Don’t be stupid. Nobody can fight or endure or last even a few days on an empty stomach. Neither can your family. This country is going to collapse now very, very fast. You don’t have much time.

I won’t be exchanging ANYTHING for my food. Nor should you. If you truly intend to live another day — then get smart and realize what it actually takes. Get the basics — food, water, basic medical supplies, shelter, clothing. I’ve seen a thousand stupid ideas on what people “think” is going to happen. Just look around right now — what do you need, each and every single day? Make a short list. That’s what you need then to properly prepare.

No American today should obey anything government is demanding, passing or legislating. Nothing. Our refusal in terms of civil disobedience should begin now. Perhaps we can avoid the coming bloodshed by simply refusing to submit another inch. In any case, we should try this first. If you are not already doing this, you’re very late to the party.
http://kurtkallenbach.wordpress.com/ Kurt Kallenbach

If you people actually new the TRUTH you would not be so worried about ANYTHING they do on Capitol Hill. All of their unConstitutional legislation applies ONLY within the 10 mile square of Washington DC and to “citizen assets” of their private/for profit company named the UNITED STATES created in 1871. That includes the Patriot Act, the Healthcare Bill, and anything else they can come up with. If you WITHDRAW YOUR CONSENT, it does not apply to you.
Bonnie

And notice how not one big shot went to jail
over the bad loans?
Not one!
http://www.internationalrealestatelistings.com/international_real_estate_listings Taylor White, PHD

I agree with the first post.

They need to sign each and every page…not just the last one.

This way, pages wouldnt be 1,000´s of pages long.

That they dont read anyway.
oneguy

MAKE IT A LAW:
You have READ the entire bill b4 voting on it.

READ a Book
Read a Bill
or atleast come up with the audiobook b4 voting

“This is some Bullshi@#$%^&”
Just Mary

Everyday Americans find out just how crooked, corrupt and evil this government is. they will stop at nothing taking every bit of liberty and freedom away from you. Only a citizenry of cowards void of dignity and self respect would let it happen.
MeMyselfandeye

Whenever someone says “you can’t eat gold” That’s when its time to skip over to the next poster’s comment.

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