Wall Street reform gets Treasury Dept. defense
April 19th, 2011
12:41 PM ET
4 years ago

Wall Street reform gets Treasury Dept. defense

Washington (CNNMoney) - An Obama administration official gave a strong defense of the Wall Street reform law Tuesday, saying the measure costs a lot less than the alternative: a collapsed financial system.

During a speech at the Pew Charitable Trusts on Tuesday, Deputy Treasury Secretary Neal Wolin batted down accusations, from Republicans and the banking industry, that regulators were working too quickly or that reforms would be too costly.

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Filed under: Obama administration • Wall Street
soundoff (13 Responses)
  1. A Real American

    Funny, though, no mention in the corporate media of the Levin/Coburn Report in which both liberals and conservatives call for the prosecution of the Wall Street banksters who crashed the economy. Come on, media, it doesn't get more bipartisan than that. Pick up on it!

    April 19, 2011 12:50 pm at 12:50 pm |
  2. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    What almost collapsed the financial markets were "sub-prime mortgages" being bought by Fannie Mae and Freddie Mac and which we are now getting stuck with to the toon of $150 BILLION and climbing. The Democrats did NOTHING to address their corrupt little darliings in this bill.

    The solution was simple and cost free. DON'T GIVE MORTGAGES TO PEOPLE WHO CAN'T REPAY THEM! And government should not be forcing banks to lend to people who can't repay and they should not be guaranteeing ANYTHING.

    The financial collapse was brought to you by the Democrats so if you think they can fix the problems, you are sadly deluding yourself.

    April 19, 2011 12:52 pm at 12:52 pm |
  3. A Real American

    And yet, no mention in the corporate media of the Levin/Coburn Report in which both liberals and conservatives call for the prosecution of the Wall Street banksters who crashed the economy. Come on, media, it doesn't get more bipartisan than that. Even Old Man McCain was in on it. Pick up on it!

    April 19, 2011 12:53 pm at 12:53 pm |
  4. Rudy NYC

    Reforms mean smaller profits which translates into smaller bonuses. It's too bad that it is too difficult to roll back the laws and put the barriers back in place that separated investment banks from savings and loan banks.

    April 19, 2011 12:56 pm at 12:56 pm |
  5. ConservaFascists/FUBAR

    Deregulation is the problem, not the solution. You can not allow the biggest crooks on Earth(Wall St.) to go unregulated. Even with the passage of financial reform, those crooks will find loopholes all around it.

    April 19, 2011 01:06 pm at 1:06 pm |
  6. Wire Palladin, S. F.

    Wall Street and the Bush/republicans took us to the brink of a global depression, and, with help from the GOP, they are doing it again.

    April 19, 2011 01:09 pm at 1:09 pm |
  7. A Real American

    The Day of Financial Reckoning is HERE – The Great Democrat Welfare Society Ends
    "What almost collapsed the financial markets were "sub-prime mortgages" being bought by Fannie Mae and Freddie Mac and which we are now getting stuck with to the toon of $150 BILLION and climbing. The Democrats did NOTHING to address their corrupt little darliings in this bill.
    The solution was simple and cost free. DON'T GIVE MORTGAGES TO PEOPLE WHO CAN'T REPAY THEM! And government should not be forcing banks to lend to people who can't repay and they should not be guaranteeing ANYTHING.
    The financial collapse was brought to you by the Democrats so if you think they can fix the problems, you are sadly deluding yourself."

    You couldn't be wronger, man. If it was Americal poor people and Fannie and Freddie who caused the economic collapse, how do you explain the simultaneous housing collapse in Europe and the emerging one in Asia? It was the fault of the banksters and the ratings agencies (like S&P, for example, who downgraded the US' debt rating yesterday. We should believe the folks who rated mortgage backed securities as AAA investments???!!!) Thanks for playing, though.

    April 19, 2011 01:12 pm at 1:12 pm |
  8. Sniffit

    "Come on, media, it doesn't get more bipartisan than that. Pick up on it!"

    Not gonna happen. If there's one thing that's true, it that the "news" media isn't really liberal or conservative (except for Faux of course...they're jsut so blatant it's not even debateable)....it's pro-establishment....pro-power. The media will cater and kow-tow to established bases of power and resources over anything else. Pointing out that a bi-partisan commission recommends that very rich and powerful bankers and financial industry giants should be prosecuted risks retaliation and CNN and the rest aren't willing to incur that risk. Better to focus on stories that assist in screwing the powerless middle-class, like uncritically reporting Ryan's budget as if it shoudl be taken anywhere near as seriously as people talking sense by pointing out that taxes have to go up.

    April 19, 2011 01:30 pm at 1:30 pm |
  9. barb

    You are really mixed up bad, you thinking the Left caused the financial disaster,your wars have killed this country, your Iraq war,Gop WMD <Caper!!!!! We are 10 Trillion in the hole,because your "Trickle Down effect brought out white collar criminals by the thousands!! You need to get your GED, or look into your facts book? We did,nt have a crash,until Bush was through "Fleeceing America" DAH?

    April 19, 2011 01:33 pm at 1:33 pm |
  10. jim

    To .. The Day of Financial Reckoning is HERE – The Great Democrat Welfare Society Ends

    Please explain what your boy Bush was talking about back in 2004...

    George W. Bush's stance on housing during the 2004 Republican Convention Acceptance Speech

    This speech was delivered at the 2004 Republican National Convention on September 2, 2004 when George W. Bush officially accepted the Republican nomination to run for President.

    "Another priority for a new term is to build an ownership society, because ownership brings security, and dignity, and independence. Thanks to our policies, homeownership in America is at an all-time high. Tonight we set a new goal: seven million more affordable homes in the next 10 years so more American families will be able to open the door and say welcome to my home."

    I wonder what these policies were that put so many people into homes they couldn't afford?

    Your boy Bush said it – please explain, if you can.

    April 19, 2011 01:37 pm at 1:37 pm |
  11. Sniffit

    "What almost collapsed the financial markets were "sub-prime mortgages" being bought by Fannie Mae and Freddie Mac and which we are now getting stuck with to the toon of $150 BILLION and climbing. The Democrats did NOTHING to address their corrupt little darliings in this bill."

    That's blaming the woodcutter for the arsonist who steals his kindling and runs off to start a forest fire. The subprimse mortgages were a bad idea, 'tis true. But they were nothing more than inert kindling. Had they been left alone, they would have resulted in a bunch of foreclosures that would have been self-correcting. Instead, banks pushed them by defrauding potential borrowers. Then you get the whole process of bundling them with decent mortgages in order to securitize them and hide that they're a terrible investment risk. Then the financial industry pays for them to be rated as less risky than they really are so they can be insured with shady underwriting. Then, they create derivatives off them, hedge funds crop up betting on their failure and the game of hot potato called credit-default swaps begins...all while the financial giants that are trading these thigns around are not only telling people to invest in them, but investing in the hedge funds themselves, betting on them going belly up. Then, of course, they do go belly up...and whoever (Lehman) is left holding the hot potato tries to call in the insurance money payoff...and insurers like AIG, which insured these ridiculous securities and derivatives based on the underrated rick the financial industry paid for, can't pay it. That's it in a nutshell. The financial and insurance industries took the kindling and purposefully, wrecklessly, wifully...however you want to put it...started a giant forest fire. That's not the woodcutter's fault.

    April 19, 2011 01:38 pm at 1:38 pm |
  12. J. Samuel Cook

    Untrue.

    Ten banks–none of which were Fannie and Freddie–held 59% of all subprime mortgages. Fannie and Freddie, while engage in the subprime lending "industry" typically purchased the safest (meaning the least at risk for default) mortgage securities. It's true Fannie and Freddie were the first to purchase subprime securities, but the "burst" was caused by banks like Countrywide and Lehman Brothers.

    You're being dishonest and disingenuous, and adding nothing to our discourse about how to make America better. You're a liar and it sickens me.

    April 19, 2011 01:56 pm at 1:56 pm |
  13. Rick McDaniel

    That "reform" was too little, by a long shot!

    The excessive compensation practices were not curtailed, interest rates on credit cards was not capped, and is totally usurious, and most of what was done, was easily worked around by the industry, amounting to almost zero impact, of the law.

    April 19, 2011 02:33 pm at 2:33 pm |