Regulators and Bush admin. to loosen regulations in attempt to fix crises!!

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Federal officials issued a raft of proposed and final rules this week aimed at shoring up the weakened financial markets and strengthening the eroding balance sheets of banks.

With little notice, regulators at four agencies that oversee the nation’s banks and savings associations on Monday and Tuesday proposed a significant change in accounting rules to bolster banks and encourage widespread industry consolidation by making them more attractive to prospective purchasers. The regulators and the Bush administration have decided to resort to further loosening of the accounting rules to try to get the industry through problems that some experts have attributed in large part to years of deregulation.

Separately, the Securities and Exchange Commission imposed new limits on short-selling and issued guidelines to help financial institutions prop up money market accounts in light of losses reported by one large fund on Tuesday.

And on Sunday, the Federal Reserve announced that it had eased restrictions that had prevented regulated companies from transferring money to less regulated and more risky affiliates. That action would, for instance, enable one arm of a giant financial company, like the commercial banks of Bank of America or Citigroup, to move money to another arm, like their investment units.

The action by the four banking agencies provides more favorable accounting treatment of so-called goodwill, an intangible asset that reflects the difference between the market value and selling price of a bank. The move is similar to a step taken in the midst of the savings-and-loan crisis that helped many institutions in the short run. Over the longer term, that decision increased the overall costs of the bailout after the government took away the goodwill benefits. Under the proposal issued this week, the regulators would permit buyers of banks and thrifts to count some of the goodwill toward meeting their regulatory capital requirements.


Are these guy's for real??!! How in the hell does more deregulation fix a problem CAUSED by deregulation? Only a repuglican administration could think this is a good idea!
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    Vierotchka
  • added September 18, 2008
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13 responses // Regulators and Bush admin. to loosen regulations in attempt to fix crises!!

  •  

    WOW THESE GUYS ARE GOOD ;)

    WhiteNoise
  •  

    BRILLIANT!!!! What an awesome strategy, do what you did in the first place, place blame on the thing that you took away, remove all barriers that were there before! Genius!

    synclaire
  •  

    "The modern conservative is engaged in one of man's oldest exercises in moral philosophy: that is the search for a superior moral justification for selfishness." : John Kenneth Galbraith

    WhiteNoise
  •  

    yes. Loosen regulations to fix a crisis that was caused by loose regulations. Makes perfect sense.

    Vote republican

    rachelmaechel
  •  

    Einstein defined insanity as

    - doing the same thing over and over and expecting different results.

    Another way to describe it is pathological stupidity...

    AveryMoore
  •  

    Its the GOP way...when others are expected to accept responsibility and thus the 'price' of their incompetence, failure and greed, the American ELITE expects everyone else to bail them out.

    Make no mistake about it --the BAIL OUT of AIG is going to come out of YOUR pocket --or some other portion of your anatomy. And --in the end --it will have done nothing to paper over the shell of an economy that has been created by the GOP and its increasingly tiny and increasingly rich sponsors and co-conspirators.

    lenhart
  •  

    JanforGore,

    “Desalination is to water as "clean coal" is to coal.”

    Ah, no. Not even close. It's hard to imagine anyone not in the corporate boardroom being more contentedly, or is it perversely, ill informed.

    Start here.

    http://www.otecnews.org/articles/ro_vs_otec.html

    “Open cycle OTEC systems produce large quantities of valuable desalinated water. A ship based design by Sea Solar Power, will produce 100 MW of electricity. Calculations demonstrate that the system will also produce 120 million litres of desalinated water/day. “

    The technology to desalinate water first appeared in Europe in 1881. So your implied argument that no one yet knows how to do it right, simply is wrong. In point of fact the Mediterranean-region countries love the idea of putting the sun to work. And let's face it, passively letting people die of thirst because you don't like or mistrust the technology, isn't all that humane or friendly.

    Are there others working on this stuff?

    Look here. It's an MIT page.

    http://www.technologyreview.com/microsites/spain/water/index.aspx

    “Spain built Europe's first desalination plant nearly 40 years ago and is the largest user of desalination technology in the Western world. Spanish companies lead the market, operating in regions including India, the Middle East, and North America. Spanish innovation contributes to advancing desalination to bring sustainable clean water to millions.“

    For 40 years and that's millions, not hundreds...

    And trying to keep up with demand,

    http://www.coastal.ca.gov/energy/14a-3-2004-desalination.pdf

    California has 2 dozen desalination facilities proposed.

    So please, research this topic. That way your argument at least seems plausible. Because as far as this technology is concerned - your blanket objection doesn't work and what's at stake is never going to be achieved by conservation..

    AveryMoore
  •  

    For years now, we have had to listen to bankers attacking Washington for imposing regulations that inhibit the free markets from making even more money. And all the while, they took exorbitant salaries, justifying them on the grounds of their huge contribution to capitalism. How bitterly ironic it is, then, to see these one-time freemarketeers becoming socialists overnight. The schoolyard bullies of Wall Street have gone running to the state for help, pleading to be saved from destruction."

    WhiteNoise
  •  

    Rearranging the deck chairs on the Titanic... That's the Bushco way.

    Vierotchka
  •  

    Exactly Vierotchka. Bush and Co. have already grabbed all the lifeboats and they have locked the doors on the middle class so no one will get out and overrun the few.

    MeganMcKenzie
  •  

    Vierotchka writes,

    "Rearranging the deck chairs on the Titanic... That's the Bushco way."

    Almost. More exactly it's -

    "Evry man for hiself! Wimmen and chidrens, LAST!"

    AveryMoore
  •  

    ha

    rachelmaechel

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