Frank: We should implement Obama bank plan "slowly"

Discussion in 'Wall St. News' started by ASusilovic, Jan 21, 2010.

  1. WASHINGTON (MarketWatch) -- A key lawmaker on Thursday said he would be supportive of an Obama Administration proposal to impose strict limits on the size and trading activities of the nation's biggest banks, as long as divestitures of hedge funds and investments in private equity are not required right away.

    "I will be supportive of this with a time frame of no less than 3 or 5 years before it gets done,"

    said House Financial Services Committee Chairman Barney Frank, D-Mass., on CNBC TV. "To have all these sales at the same time would be a fire sale and I can't support that." The White House on Thursday proposed requiring big banks to divest hedge funds, private equity investments and it places restrictions on commercial banks to prevent them from proprietary trading of their own accounts such as mortgage-backed securities. The proposal requires legislative action,
  2. Didn't take long for senior democrats to start to push back against the plan.
  3. I hate these lukewarm centrist politicians. Frankly, had Obama took the torch and ran with it instead of giving the control to idiotic politicians, he would have gained much more leverage. Now he's about to receive a friggin' margin call.
  4. Nope. Just takes one day where the market throws a temper tantrum, threatens mutually assured destruction and Fat Frank caves. That's why real "change you can believe in" will never happen. They're too afraid to stick to their guns.