House Republicans have had a financial reform solution on the table, H.R. 3310, for nearly a year. Our plan modernizes financial regulations while preserving the free market principles Americans hold dear. How does it work? We’re so glad you asked.
Scrap the Bailouts & Too-Big-To-Fail
The core of our solution is a promise to the American taxpayer: no more bailouts. It provides for the orderly resolution of insolvent non-bank financial institutions through the bankruptcy system, regardless of their size. This would allow large, failing firms to be unwound without wreaking havoc on the broader economy.
Fix Fannie, Freddie, Fitch, & the Fed
Fannie Mae and Freddie Mac recklessly abused their then-implicit government guarantee in pursuit of liberal social policies and are now wards of the state. Our plan ends the taxpayer subsidies of Fannie and Freddie, forcing them to compete with the private sector on a level playing field.
The Federal Reserve’s split focus on monetary policy and financial institution supervision has put both missions at risk. Our plan reins in the Fed and places its financial institution supervisory responsibilities with a separate entity, thus restoring the primacy of the Fed’s monetary policy mandate.
Credit rating agencies, having also missed the causes of the financial crisis, would no longer enjoy the federal government’s seal of approval. Competition on a level playing field will lead to more reliable ratings products.
Consolidate the Regulatory Agencies & Strengthen Consumer Protections
It creates greater transparency and consistency by consolidating depository institution regulators like the Office of Thrift Supervision and the Comptroller of the Currency into one agency that also possesses the supervisory functions of the Federal Reserve and the FDIC.
Consumer protections are strengthened by creating an Office of Consumer Protection within the consolidated regulatory agency. Consumers will benefit from a single point of contact with the government, regulators will have more investigative and enforcement tools, and civil and criminal penalties will be increased.
Washington’s bailout mentality incentivizes even more of the excessive risk-taking that helped spark the financial crisis by reassuring irresponsible parties that they too will get a government backstop if their balance sheet goes sour. H.R. 3310 was designed to ensure that the government stops picking winners and losers, taxpayers are never again asked to pick up the tab for bad bets on Wall Street, and market discipline is restored.Will Democrats even consider a Republican solution? So far, there’s been little sign of interest.
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For the Dems to ignore a plan there would actually have to be one. Come on, the GOP has done nothing, absolutely nothing since Obama was elected. The only strategy they have is to delay, filibuster, obstruct and otherwise do nothing. We won't forget this in November.
ReplyDeleteAny the liberal agenda is turn us into the Socialist States of America. I would filibuster also. It's hard to watch the liberals destroy America.
ReplyDeleteThe dem plan doesn't allow for bail outs either. FNMA and Freddie are already regulated because they're government owned, and weren't part of the problem. It's part of the Limbaugh-Beck lie to keep talking about FNMA and Freddie while ignoring what really happened. This is just more obstructionism and grandstanding on the part of Republicans. They are standing for wall street and don't care if they screw the American people.
ReplyDeleteHey 4:41-you need to lay off the Keefy Overbite and Chris Matthews. Fannie May and Freddie Mack (led by Bawny Frank and Chris Dodd) were the cause of the problem. Everybody knows that except you. You need to educate yourself a little before you start putting up posts about something that you obviously know nothing about. It's this type of ignorance that put the liberals in power and gave the new regime the power to screw the American people. I will concede that the people on Wall Street are greedy and dirty, but no more than the politicians that are now grilling them. Someone should be grilling congress instead, but they are above the law. And to 2:25-the communist takeover by the democrats won't be forgotten in November.
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