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What Does The Financial Reform Bill Do Other Than Being Completely And Utterly Worthless?

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Is it possible to write a 2,300 page piece of legislation that accomplishes next to nothing and is pretty much completely and utterly worthless?  The answer is yes.  Barack Obama has been trumpeting the Dodd-Frank financial reform bill as the “biggest rewrite of Wall Street rules since the Great Depression”, but the truth is that after the Wall Street lobbyists got done carving it up, the bill that was left was so watered down and so toothless that it essentially accomplishes nothing except creating even more government bureaucracy and even more mind-numbing paperwork.  The bill is so riddled with loopholes for the big banks that it is basically the legislative equivalent of Swiss cheese.  The Democrats in the Senate were ecstatic when they announced that they had secured the 60 votes needed to pass this legislation, but when they are asked about what the financial reform bill will do, most of them are left stammering for some kind of cohesive response.  The sad truth is that most of them probably don’t understand the bill and none of them will probably ever read the entire thing.

So will the financial reform bill do any good at all?

Well, yes.

A very, very small amount.

Essentially, it is kind of like going over to the Pacific Ocean and scooping out a couple of cups of water.

That is about how much good this bill is going to do.

But U.S. Senate Majority Leader Harry Reid is making this sound like this is some kind of history-changing legislation….

“We’re cleaning up Wall Street.”

Oh really?

Charles Geisst, professor of finance at Manhattan College recently had the following to say about this absolutely toothless bill….

Like health-care reform, this bill is being drawn up to grab headlines but its details betray it as nothing more than a slap on the wrist for Wall Street. It is true that Wall Street can commit grand theft and apparently get off with nothing more than community service.

The truth is that most of us never expected the U.S. government to truly take on Wall Street.  The relationship between the two is just way too cozy for that to happen.

So does the financial reform bill actually accomplish anything?


Let’s take a look at the “sweeping changes” contained in the bill….

*Federal regulators will receive more authority to monitor everything from mortgages to complex derivatives.  (Oh goody!  Just what we needed – more federal regulation!  As if federal agencies have ever been very good at regulating the financial industry…) 

*Financial firms will be required to reduce the debt they take on and to hold more capital in reserve.  (This will make financial firms marginally more stable, but the truth is that the big banks are so good at accounting tricks that this will not really make much of a difference.  When a big firm is going to fail a few extra bucks in reserve is NOT going to make a difference.) 

*The U.S. government will be given extensive power to seize collapsing financial firms.  Federal regulators would keep collapsing firms operating long enough to prevent a massive panic and would slowly sell off its pieces.  (This does not eliminate “too big to fail” – instead it enshrines “too big to fail” into law permanently.  The bill institutes “orderly procedures” for exactly how to proceed when the U.S. government steps in and takes over failing financial firms.  Just what we need – more socialism!)

*The financial reform bill creates a new Bureau of Consumer Financial Protection at the Federal Reserve that is supposed to help prevent abusive lending by mortgage and credit card companies.  (Wait a second – this bill gives the Federal Reserve more power?  Who came up with that grand idea?  Yeah, let’s give the fox more power to guard the hen house.  The truth is that the Federal Reserve is one of the core problems with our economic system as we have written about previously.)  

*Some rather toothless regulations will be placed on the derivatives markets, hedge funds and credit rating agencies.  (A big emphasis on “toothless”.)

So what does this legislation not do?

-It does not eliminate “too big to fail”.  The truth is that the biggest banks and financial institutions have been systematically gobbling up a bigger and bigger share of the market and this legislation does nothing to change that.  Anthony Sanders, a professor of finance in the School of Management at George Mason University, says that this bill essentially does nothing about the “too big to fail” problem….

“As far as I can see the ‘too big to fail’ problem is still in place.”

In fact, this legislation may cause even more consolidation in the financial industry, because small firms are going to have an especially difficult time complying with all of the new rules, regulations and paperwork created by this bill.

-The financial reform bill does nothing about the horrific bubble in the derivatives market.  Originally it was believed that some tough regulations were going to be imposed on derivatives trading, but the Wall Street lobbyists were all over those provisions like rabid dogs. 

So now there is loophole after loophole in the bill and the “derivatives problem” still ominously hangs over Wall Street.  Not that there is any way to fix it. 

Nobody actually knows the true total value of all the derivatives in the world, but estimates place it at somewhere between 600 trillion dollars and 1.5 quadrillion dollars.

When the derivatives bubble pops, and it will, there won’t be enough money in the entire world to fix it.

-The financial reform bill does nothing about mortgage giants Fannie Mae and Freddie Mac.  They remain financial black holes that the U.S. government will be forced to pour hundreds of billions (if not trillions) of dollars into.

-A proposal to conduct yearly comprehensive audits of the Federal Reserve was left out of the financial reform bill.  Instead, a very, very, very limited one-time audit of a few of the transactions that the Federal Reserve conducted during the height of the financial crisis was included. 

What we really need is a true audit of the Fed.  The Federal Reserve has never been the subject of a true, comprehensive audit since it was created in 1913.  Considering the fact that the Federal Reserve issues our currency, controls our banking system, sets our interest rates and is basically the core of the U.S. economy, you would think that the American people should have the right to see what is going on over there.

But Ben Bernanke and the rest of the folks over at the Fed fought against the comprehensive audit proposal with everything that they had.  They seemed extremely alarmed that the American people might actually get to take a look inside their books.

The truth is that unless something is done about the Federal Reserve, no true “financial reform” is really going to take place.

But the U.S. Congress could have done at least some good with this bill.

Instead, they have given us a 2,300 page mess that is pretty much completely and utterly worthless.

So what do you think about the “financial reform” bill.  Feel free to leave a comment with your opinion….

  • Lennie Pike

    A good analogy of this plutocracy situation in the U.S. is the situation in Haiti. CNN just did a piece which showed many huge warehouses in Haiti filled to the brim with food and medical supplies that are expiring and not being distributed, while children in orphanages next door are hungry and sick. Let’s face something new and foreign to us America – the main thing that causes third world countries to be third world countries. Human Beings can either sink to or are born with (I don’t know) a level of evil where they couldn’t care less about others, or worse yet intentionally hurt others. Many of these have the mentality that the people who are powerless must be kept powerless or the positions will be reversed . These are the ones ruling our country now, and always have ruled third world countries. I have lived extensively in a third world country, the level of corruption, control, and abuse is unbelievable and blatant, as if they are taunting the people – “go ahead, what are you going to do about it?”

    The talking heads on CNN had incredulous looks on their faces while receiving this news from the reporter in Haiti – very ironic since they are working for the ones in power in the U.S.(probably knowingly but mistakenly, “Bridge Over The River Quai”.)

    What is happening in the U.S. WOULD NOT HAVE BEEN POSSIBLE or have happened 39 years ago (1971), mainly because the level of morality and confusion had not sunk to where it is today. Alcohol, drugs, tv, materialism, the food we have been eating (disobedience to God without repentance through asking for forgiveness in the name of his Son Jesus Christ, myself included, except for the last part).

    Now the peoples of countries that are under the control of the people who control the Federal Reserve and Western Banking, which are probably a lot more countries than we know of, are intentionally being pressured so that they will beg to accept the new one world government and financial system.

    Those supplies in the warehouses in Haiti are not being distributed either for the first reason I gave, or are being saved for and will be distributed when the world economy collapses to the people who accept the nwo.

    All in all the result of the two possible reasons will be the same. This never would have happened when people could recognize this evil, and would stand up to prevent it or fight it.

  • ParLay

    This is beyond conspiracy theory because it’s the EXACT SAME PEOPLE from the Clinton Administration that deregulated this industry which are now supposed to be writing new regulations. Who can believe these clowns anymore?

    Ever heard of the Glass Steagall Act enacted during the Great Depression.

  • TK


    I agree with this article and Lennie. This world is quickly preparing for a financial take over. The NWO for short. When many of the people see their standard of living demolished in the next few years, most of them will gladly do what ever it takes to return to the life they once had, even if it means losing their freedoms. A little thing like a mark on the hand or for head won’t matter much to them.

    Soon, there will be no turning back. With the debt that we are passing to our children, and no one standing up to stop the spending, we will be slaves to the banking industry.

    Just remember, the Bible is very clear, do not take the mark, repent of your sins, believe in the Lord Jesus, and though shalt be saved.

  • Tim

    What disturbs me is that Congress never really understood what caused the crisis in the first place, so none of their remedies (as inept as they would have been anyways) will probably just make things worse. I know since all the credit card reform, all my interest rates have gone up.

  • lostinmissouri

    The reason all the congressmen and senators are high fiveing themselves over this meaningless piece of crap, is that once passed, they all get paid their vig from the banksters.
    The USA is doomed.

    “When you see that trading is done, not by consent, but by compulsion- when you see that in order to produce, you need to obtain permission from men who produce nothing- when you see money flowing to those who deal, not in goods, but in favors- when you see that men get richer by graft and pull than by work, and your laws don’t protect you against them, but protect them against you- when you see corruption being rewarded and honesty becoming a self-sacrifice- you may know that your society is doomed.”
    Ayn Rand
    Atlas Shrugged, page 413 Written 60 years ago.

  • Cee

    Okay, I have a question, it might sound stupid to some but no question is a stupid question, that’s what I learned in school. I hear all of this NWO talk, NWO this, NWO that. I know that this is supposed to be a part of some biblical prophecy, since all the christians are going nuts. Can someone tell me, without quoting or taking anything from the bible, what do the NWO want? How exactly are they going to run the world once they crash everything? How do you know how many people/countries/etc. will go along with this? How do you know people won’t revolt? Where is the “antichrist” that’s supposed to rule the world and bring peace or whatever? I hear all these broad statements but we know the devil is in the details and I cant accept those kind of statements, I need details. Can someone please answer my questions without using biblical references? Michael, please approve my comment because this is something I know people besides myself want to hear. By the way, yes I am speaking with several people and we are preparing for what comes.

  • Pokey McGee

    Cee — the answer to your question is that there is no “New World Order.” It is a conspiracy fantasy decades old which has been amplified by the internet. The idea of the NWO is as sophomoric as a villain from an Austin Powers movie. The whole notion that the “NWO is taking over” has been around for years, and guess what — it hasn’t taken over yet.

    Only uneducated, easily persuaded fools believe in such a conspiracy. Don’t be one of them.

  • Sadly, the “reform” bill only serves the purpose of making it look like Obama & Congress are doing something about the finance industry criminals.
    Our “leaders” know that a huge portion of Americans will accept the “reform” at face value & think the problems are fixed. Then just like Katrina, once attention is deflected nothing will actually improve.

  • Alpha 1

    If you don’t think there is a push for a New World Order, you must have your eyes and ears closed, my good man.
    Simply listen and read the many World leaders who are planning control of the World, its in print and on tape. I didn’t believe it either until I researched into it.
    Now Pokey, do your research and …………WAKE UP- MAN…

  • TK

    CEE’s Answer

    Who ever control’s the gold makes the rules. As of right now, we do not control our money supply, the federal reserve does. So they make the rules. Many of the country’s in this world are ruled by banks, take a look at Greece. They are smaller than California in size and scale, and are being forced to take actions that the people do not want. Why is that? Because the banks are making the rules for them. ( The International Monetary Fund to be exact ).

    To answer your question “How exactly are they going to run the world once they crash everything?”

    Once most of the biggest currency’s fail (dollar and euro). The bank’s will come in with some new type of currency that will be controlled by National Banks. Not us. Just remember, he who control’s the gold makes the rules.

    2nd Question “what do the NWO want?”

    They want control. When this new currency comes into play to help stop the downward slide caused by our reckless spending, we will not have any control.

    With all this talk of control, I am glad that I belong to the one that control’s where my soul will spend eternity. As scary as a NWO may sound, they can not destroy your eternal soul, only Jesus can on judgment day. Please do not get the mark, turn from your sins, believe in the Lord Jesus for the cleansing of your sins, and you can be saved.

  • Lennie Pike

    Cee: Be in charge of your own education, don’t be fooled into trusting others to do the job correctly – a huge part of our country’s problem. Your teachers may not care about you. Seek and ye shall find, knock and the door shall be opened to you.

  • john w

    Get involved. If each of our congresspeople/senators had received 10,000 emails/letters/phone messages saying “You don’t get my vote unless Glass-Steagall is put back in place”, we might have a different bill right now. We know that the lobbyists put pressure on our politicians. The only way to counteract that is for us to bring even more pressure.

  • Winston

    For a very long time I’ve believed that the US government/corporate collusion is just as corrupt as in any banana republic, the primary difference being that we are so wealthy that the vast skimming off the top isn’t noticed by the general population. Well, in really bad times it becomes noticeable as is revealed in this article which confirms my long-held US-as-banana-republic belief:


    The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government — a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.

  • RoadHawg

    Financial reform, huh? Are the derivatives truly going to be regulated? Are the derivatives going to be put on exchanges and have transparent pricing? Nobody knows how many derivates are out there and what value they actually have. Is this being reigned in? As for mortgages, there are still mortgage companies allowing the applicant to count almost anything as income and home inspections are not always being done. When one company representative was asked why these thing were still going on he said basically that they were going to “flip it” ( the mortgage) to Fannie in about 30 days. As for “too big to fail”, the only thing that is not too big to fail is the middle class. That is being insured by do nothing politicians allowing corporations to migrate jobs overseas. The Federal Reserve and the European Dynasty that rules them are untouchable. The plutocrats, oligarchs and the lobbyists are slowly installing their monarchy in the US. Pretty soon we will be known as The United Slaves of America.

  • Cee

    Thank you all for the answers to my questions. But, I have a couple more. It seems that the idea that the NWO being evil is from the bible. When you look at the way the world is set up now, do you think that an NWO is a natural progression of the government? I had heard somewhere on the Internet that they had planned to make the chip which would of been “the mark of the beast” and they passed on it, they want to make an ID card with a chip instead. Looking at the way the world and all the different countries are interconnected through their economies, would this be something bad? Some could look at this as progress, shocking the system to start something new. I understand that this is a senstive topic, but I’m just a simple man looking for some answers and once again, I appreciate your time.

  • Cee

    Pokey McGee said:

    “The answer to your question is that there is no “New World Order.” It is a conspiracy fantasy decades old which has been amplified by the internet. The idea of the NWO is as sophomoric as a villain from an Austin Powers movie. The whole notion that the “NWO is taking over” has been around for years, and guess what — it hasn’t taken over yet.”

    I want to bring up something that I have noticed. Remember Y2K? I was a teenager when it was supposed to take place. I remember many christians saying it was the end of the world, I look on the internet now and I see many people back then said that the NWO was to come after that incident. But it never even happened. I remember several years ago when gas was $4 a gallon. Many people said that was going to be the end of oil, the cost going up because of the lack of it. Didn’t happen and the price slightly went back down. I hear people say oil is going up because of the BP incident, well it’s been going on for awhile and gas is around $2.50-@2.80 a gallon in my area (DC Metropolitan area) and for the last several years gas has always went up in the summer and it’s summer now. I understand the financial facts and everything, I just can’t forget how all of this feels like those prior events. It’s making me really suspicious and upset.

  • Pokey McGee

    Cee: your suspicions show good judgment. Look, every country goes through some tough times every once in a while. We are in one of those tough times right now. BUT, that does not mean the only reason is because some faceless, baseless entity called the “new world order” is taking over the globe. Everybody who supports this asinine theory says the NWO wants to take over the world, control everybody, etc. For what reason? How are they going to control it? Nobody knows the answers to these questions.

    It is a conspiracy theory because it is just that — a conspiracy. Don’t waste your time trying to connect the dots of this silly fantasy.

  • Mojogoober

    The Colonel has it right. This is the same Kabuki/WWF theatre that plays out with any significant legislation. The leaders of congress get together and decide who gets to be on either side of the issue, then they “wrestle” with it for a while to give the impression that there is really a battle going on. All the while the affected lobbyists write the bill in such a way that makes it look like something is actually happening and in the end something worthless gets passed with great fanfare.

    Bottom line is we dont have a functioning democracy in this country, so no amount of calls to your congressmen will do anything. You want to see the future?… Watch “Idiocracy”

  • TK

    CEE’s Answer Could this be a bad thing ?

    It all depends on how much you love your freedom. The idea that we could get a mark/chip that no one can buy or sell unless they have it is a huge loss of freedom. To think that every thing you buy or sell would be easily tracked and counted, to think that many people would have access to this kind of data base is mind boggling.

    It also depends on your world view, if you think like I do, then you know that this mark/chip was predicted by my Lord Jesus Christ almost 2,000 years ago. And He clearly states many times that the ruler of this world is the devil. That is why the Bible says that friendship with this world makes you an enemy of God.

  • Flyer1

    Come on folks, these people own our government.

  • Chuck

    The New World Order idea has some archaic roots, most specifically in the period between 1776 and 1792. The American Revolutionary War overthrew the British crown and established a “new world order” in that it was a kingdom without a king–recall that our constitution allows only white, male landowners to vote. Later came the French Revolution, vastly more important than the Americna in that they killed their king, cast down the old order and established a republic. Both of these events were, according to tradition, influenced by secret societies that were out to establish a new world order–Illuminati, Freemason, etc. It’s anyones call whether that is true or not, but by 1815 the king was back in France and things went normal for awhile. The NWO at that point may have been conceived as the end of monarchy, and by the end of WWI in 1918, thats what it was.
    Christians believe the NWO is what they call the “beast” or “Babylon” or the “anit-Christ” based on select verses in Revelation. They are waiting for an all-powerful seed of Satan to arrive and create a world empire richer and more powerful than any seen before–he will rule the world and force everyone to get the mark of the beast(666).
    HOWEVER(and you Christians should pay attention here) there is already a New World Order, instituted after the end of WWII called the UN. There is already a nation ruling the world that is more rich and powerful than ay other in all history–the United States! And the name “anti-Christ” is nowhere found in the book of Revelation.

    So, Cee, the elitists(as I like to call the corporocratic scumbags that run the world via the World Bank, World Trade Organization, and United Nations Security Council(which still holds power 60 YEARS AFTER WWII!!!)) are already in total control, and what they want is as much wealth as they can get.
    Think of as the same zero-sum game that they played during the Cold War–a gain for one side as a minus for the other? Well, any money in anyone elses pocket–especially filthy poor rabble like us–is money that they feel should be in their pocket–and they’ll do anything to get it!!

    That, friend, is the gist of the notorious NWO.

  • Lennie Pike


    More than money and control of everything, they want your willing obedience, your worship, and your soul because God and righteousness is their enemy. That is the main thing they are all about. Do you know any people that you are willing to give those things to? They will offer you the opportunity to live comfortably instead of the suffering that they engineered or being killed by their hands in exchange for your soul. Since obviously they are not greater than God, they and any one who sides up with them will be eternal sufferers and losers.

    Logical proof is not the basis for anyone to be a believer and follower of Jesus Christ, but if that is what you are looking for now, you should read the Bible (Daniel, Ezekiel and all of the New Testament) because many prophecies found there have already come to happen, most in the past century and at an ever increasing pace.

  • Chuck

    I disagree, Lennie. These folks don’t believe in any God. They are blinded by science and greed. In their minds, they are the appointed caretakers of the earth, much the way policemen believe they are the caretakers of the common citizen. This perception inevitably creates a contempt for those one is “looking after”, which evolves into a hatred. Feeling they have the requisite wisdom to fashion the world as they see fit, they will attempt to create a world they belive is somehow “just”, and as we know, the road to hell is paved with good intentions.
    Of course, just as in the case of policemen and armed forces, it’s nice that they do what they do, but it is we the people who are responsible for their positions in the first place. Likewise, the “elite”, despite their vast powers of money and manipulation, have nothing aside from us.
    As to prophecy, there is much open to interpretation, and just when anyone thinks they have “unlocked” revelation, something else happens that throws it all back up into the air again.

  • Oh, as a capitalist I go round and round with some of the Democrats, or what I label as liberal-socialists these days over economic issues. Now we have a new Financial Reform Bill, one we are promised with stop the next economic crisis, and bubble bursting calamity. Indeed, indeed, or should I say doubtful. And realize although I may appear to be cynical here, I must tell you I am not, I just have been watching the history for the last four decades, more like living it.

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