December 13, 2009

FINANCIAL OVERHAUL

Democrats in the Congress House Of Representatives rushed through an early Christmas present for President Barack Obama last Friday -- in the form of a grab-bag “Financial Overhaul Bill” – then sent it along to the Senate for disposal.

Intent was said to “protect consumers and curb the abuses of Wall Street.” However, criticism of proposed economic measure is widespread.

The House approved the bill 223-202 without a Republican yea.  Twenty-seven Democrats jumped traces and voted against the bill.

Centrist Democrats -- Reps.  Melissa Bean (Ill.)  and Dennis More (Kan.) -- spoke against the amendment -- saying on the chamber floor: “This creates a bureaucratic nightmare!”

SEAL OF APPROVAL

Nonetheless, Treasury Secretary Timothy Geithner was quick to give the measure his seal of approval.

“The president set forth clear objectives and principles of reform that were endorsed by Congressional leaders.  House passage moves us an important step closer to meeting the President’s objectives for reform.”

The bill creates a new Consumer Financial Protection Agency (CFPA), imposes new curbs on the multi-trillion-dollar “derivatives” market, and sets up a new system for dissolving failing financial firms.

BAIL OUT

As Silla Brush, columnist for The Hill – an independent daily newspaper in Washington, D.C. – wrote:

“The Senate will likely vote next year on financial overhaul legislation.  The legislative effort follows last year’s financial crisis – which exacerbated a recession and ushered in a $700 billion bailout of the financial system.

“The House bill beat back an effort to scrap the CFPA agency.

“A key part of the debate centered on how to dissolve financial firms that are failing and threaten the economy.  The bill creates a government-run fund supported by assessments on the financial industry.”

Hear Rep.  Ed Perlmutter -- a Colorado Democrat and member of the Financial Services Committee that spent months assembling the measure:

“As we have seen over the past year, our financial system is broken.  We can no longer afford to maintain the status quo.”

WORDS OF COMFORT

Obama was quick to endorse the House bill:

“This legislation brings us another important step closer to necessary, comprehensive, financial reform that will create clear rules of the road, consistent and systematic enforcement of those rules – and a stronger more stable financial system with better protections for consumers and investors.”

These are uplifting words.  However, final legislation awaits action by the Senate sometime next year.

There will be committee hearings with lots of speeches by members for grandstanding, television, debate, passage, joint committee meetings with House initiators, more hearings, more television, more speeches.

Finally, there will be joint agreement, Rose Garden congratulations by Mr. Obama, more speeches, television, presidential signing with a dozen pens, and handshakes all around.

In the meantime, the economy will have fixed itself with private enterprise, small businesses and private enterprise.

It’s called “The American Way.

PARTING SHOT

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist