Financial Regulation, or is it?

The bill seeks to curb abusive lending, particularly in the mortgage industry, and to ensure that troubled companies, no matter how big or complex, can be liquidated at no cost to taxpayers. And it would create a “financial stability oversight council” to coordinate efforts to identify risks to the financial system. It would also establish new rules on the trading of derivatives and require hedge funds and most other private equity companies to register for regulation with the Securities and Exchange Commission.

To which HuffPo counters:

In a statement released after the vote, Feingold explained that the legislation does not address the root causes of the financial crisis:

“The bill does not eliminate the risk to our economy posed by ‘too big to fail’ financial firms, nor does it restore the proven safeguards established after the Great Depression, which separated Main Street banks from big Wall Street firms and are essential to preventing another economic meltdown. The recent financial crisis triggered the nation’s worst recession since the Great Depression. The bill should have included reforms to prevent another such crisis. Regrettably, it did not.”‘

Now, I’m no financial guru, but I understand what ‘liquidated’ means.  And the phrase “no matter how big or complex, can be liquidated” suggests exactly the opposite of Feingold’s quote.

To slam home the point, the New York Times repeated their previous utterance about too big to fail.

In response to the huge bailouts in 2008, the bill seeks to ensure that troubled companies, no matter how big or complex, can be liquidated at no cost to taxpayers. It would empower regulators to seize failing companies, break them apart and sell off the assets, potentially wiping out shareholders and creditors.

Source: NYT and Source: Huff Po

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