Post by psychecc on Sept 26, 2008 14:26:52 GMT -6
According to CNBC today, the report was more critical of Cox and the SEC than this article sounds. I love the voluntary monitoring program. Sheesh. How stupid do they think taxpayers are? Pretty stupid, I guess.
I swear if one more politician goes on TV to say we just need to better educate the voters so they'll understand why we're screwing them, I think I'll scream. I think we understand what frozen credit means, even that it could likely affect us very personally. I frankly don't care.
So what if loans are hard to come by for a while? If businesses are truly running solely on credit availability, then those businesses should fail. The Fed Ex CEO said his balance sheet was strong, and his company didn't need to borrow. Others should have planned ahead as well. There is A TON of private equity waiting to come in and scoop up the great deals when prices get low enough. Let them. Government should not rescue Wall Street. They keep saying today that markets are betting a bailout will get done over the weekend. I hope they're wrong.
I just heard on TV that for every 1 person unemployed on Wall Street there are 22 unemployed on Main Street! I say let the chips fall, and then we'll see if they were right and the world as we know it comes to an end. They deserve to fail, to lose everything. And if there is some spillover into the rest of business, then so be it.
I know they're saying this will cause job losses as businesses can't get loans. Maybe so, or maybe they'll "find the money" they need. I don't know for sure, but I'm certain they are exaggerating the risk to the average person as a way of selling this stinker.
SEC ends program to oversee investment banks
updated 3:14 p.m. ET Sept. 26, 2008
WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission is ending its program to supervise large independent investment banks now that the five participants have collapsed or reorganized.
The announcement Friday coincided with criticism by the SEC's inspector general of the agency for failing to properly supervise broker dealer risk assessments in a program run by the Division of Trading and Markets.
"TM's (trading and markets) failure to carry out the purpose and goals of the Broker-Dealer Risk Assessment program hinders the Commission's ability to foresee or respond to weaknesses in the financial markets," said the inspector general's report.
Under the investment bank program, Merrill Lynch & Co <MER.N>, Lehman Brothers Holding Inc <LEHMQ.PK>, Bear Stearns, Goldman Sachs Group Inc <GS.N> and Morgan Stanley <MS.N> -- volunteered to be monitored for capital and liquidity levels.
Bear Stearns was taken over by JPMorgan Chase & Co <JPM.N> in an emergency sale engineered by U.S. officials, Lehman has filed for bankruptcy protection, Merrill is being taken over by Bank of America Corp <BAC.N>, and Goldman and Morgan Stanley have converted themselves into bank holding companies....
"The last six months have made it abundantly clear that voluntary regulation does not work," SEC Chairman Christopher Cox said in a statement.
In July, the SEC and the Federal Reserve formalized a deal to share information about banks, in a move expected to strengthen oversight of the financial markets that were still reeling from the demise of Bear Stearns.
Cox said the SEC will continue to work closely with the Fed, but will be focused "even more clearly" on the broker-dealer subsidiaries of the banking conglomerates.
....
www.cnbc.com/id/26903525/for/cnbc/
I swear if one more politician goes on TV to say we just need to better educate the voters so they'll understand why we're screwing them, I think I'll scream. I think we understand what frozen credit means, even that it could likely affect us very personally. I frankly don't care.
So what if loans are hard to come by for a while? If businesses are truly running solely on credit availability, then those businesses should fail. The Fed Ex CEO said his balance sheet was strong, and his company didn't need to borrow. Others should have planned ahead as well. There is A TON of private equity waiting to come in and scoop up the great deals when prices get low enough. Let them. Government should not rescue Wall Street. They keep saying today that markets are betting a bailout will get done over the weekend. I hope they're wrong.
I just heard on TV that for every 1 person unemployed on Wall Street there are 22 unemployed on Main Street! I say let the chips fall, and then we'll see if they were right and the world as we know it comes to an end. They deserve to fail, to lose everything. And if there is some spillover into the rest of business, then so be it.
I know they're saying this will cause job losses as businesses can't get loans. Maybe so, or maybe they'll "find the money" they need. I don't know for sure, but I'm certain they are exaggerating the risk to the average person as a way of selling this stinker.
SEC ends program to oversee investment banks
updated 3:14 p.m. ET Sept. 26, 2008
WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission is ending its program to supervise large independent investment banks now that the five participants have collapsed or reorganized.
The announcement Friday coincided with criticism by the SEC's inspector general of the agency for failing to properly supervise broker dealer risk assessments in a program run by the Division of Trading and Markets.
"TM's (trading and markets) failure to carry out the purpose and goals of the Broker-Dealer Risk Assessment program hinders the Commission's ability to foresee or respond to weaknesses in the financial markets," said the inspector general's report.
Under the investment bank program, Merrill Lynch & Co <MER.N>, Lehman Brothers Holding Inc <LEHMQ.PK>, Bear Stearns, Goldman Sachs Group Inc <GS.N> and Morgan Stanley <MS.N> -- volunteered to be monitored for capital and liquidity levels.
Bear Stearns was taken over by JPMorgan Chase & Co <JPM.N> in an emergency sale engineered by U.S. officials, Lehman has filed for bankruptcy protection, Merrill is being taken over by Bank of America Corp <BAC.N>, and Goldman and Morgan Stanley have converted themselves into bank holding companies....
"The last six months have made it abundantly clear that voluntary regulation does not work," SEC Chairman Christopher Cox said in a statement.
In July, the SEC and the Federal Reserve formalized a deal to share information about banks, in a move expected to strengthen oversight of the financial markets that were still reeling from the demise of Bear Stearns.
Cox said the SEC will continue to work closely with the Fed, but will be focused "even more clearly" on the broker-dealer subsidiaries of the banking conglomerates.
....
www.cnbc.com/id/26903525/for/cnbc/