Financial overhaul bill clears hurdle, moves to full House - Yahoo! News
I will be the first to say I don't know enough about economics to really really comment without sounding stupid, but I thought this was interesting. Thoughts?Mcclatchy Newspapers – 49 mins ago
The broadest revamp of financial regulation in seven decades cleared a key congressional committee Wednesday and will move next week to debate on the floor of the House of Representatives .
On a 31-27 party-line vote, the House Financial Services Committee passed the Financial Stability Improvement Act.
The measure addresses much of what led to the recent financial crisis, including insufficient government powers to shut down in an orderly fashion huge financial firms that are deemed too big to fail because they're interconnected globally.
The committee bill would create so-called "resolution authority," allowing the federal government to dismantle such huge financial firms, which it was unable to do when Lehman Brothers collapsed in September 2008 .
Days later, the Federal Reserve used creative tools of questionable legality to save insurer American International Group and pay off its biggest creditors, which were mainly Wall Street banks.
I did find this part interesting/amusing:
Republicans may try to reverse a controversial amendment added by one of their own, Rep. Ron Paul of Texas . He capped a 25-year crusade with passage of a provision to have a government audit of the independent Federal Reserve, including its conduct of monetary policy.
Republicans were so against this audit idea that in 2003 they abolished a subcommittee to deny Paul the chairmanship of a panel that had oversight of the Fed.