Friday Movie Night - Risky Business

hot buttered popcorn It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

 

Tonight's Friday Movie Night is a little different and why it's being posted early. Senator Bryon Dorgan has come alive and getting involved in financial reform. This is great news for Dorgan predicted derivatives were a very serious problem 15 years ago (take that Taleb & Roubini!). First, below is Dorgan's call to action. Next is a talk on derivatives and financial reform by Dorgan. Finally is Senator Bernie Sander''s Too Big to Exist bill which breaks up the systemically risky institutions.

Considering we have financial lobbyists writing the House derivatives bill (exceptional piece by William Greider) and a complex maze of financial reform (where we are still digging through to find the loopholes exemptions), we call your attention to a refreshing breeze blowing down from common sense North Dakota.

Senator Bryon Dorgan is requesting you get involved in demanding common sense financial regulatory reform and reinstate Glass-Steagall (separate out FDIC insured banks from investment banks).

Below is an hour talk by Senator Dorgan on Financial Regulatory and Structural Reform:

Byron Dorgan - Risky Business

 

Here is the classic speech from Senator Dorgan predicting dire consequences if Glass-Steagall was repealed.

 

Senator Bernie Sanders has kept it simple with his Too Big to Fail - Too Big to Exist bill. S.2746 is short and sweet. Break up the big banks. Period.

To address the concept of `Too Big To Fail' with respect to certain financial entities.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Too Big to Fail, Too Big to Exist Act'.

SEC. 2. REPORT TO CONGRESS ON INSTITUTIONS THAT ARE TOO BIG TO FAIL.

Notwithstanding any other provision of law, not later than 90 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to Congress a list of all commercial banks, investment banks, hedge funds, and insurance companies that the Secretary believes are too big to fail (in this Act referred to as the `Too Big to Fail List').

SEC. 3. BREAKING-UP TOO BIG TO FAIL INSTITUTIONS.

Notwithstanding any other provision of law, beginning 1 year after the date of enactment of this Act, the Secretary of the Treasury shall break up entities included on the Too Big To Fail List, so that their failure would no longer cause a catastrophic effect on the United States or global economy without a taxpayer bailout.

SEC. 4. DEFINITION.

For purposes of this Act, the term `Too Big to Fail' means any entity that has grown so large that its failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial Government assistance.

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Comments

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I want this public sign up to Dorgan's initiative spread around for we are seriously losing any momentum to get real financial regulatory reform and that's really bad. What about the next financial Armageddon because nothing was done?

Dorgan is currently Democratic Policy Chair and the 3rd most powerful Senator. He has consistently been a great legislator and has put forth very sane legislation on trade, economic, labor and fiscal policy. I, for one, would like to see more public support for Dorgan so we might get some of his legislation and amendments passed. Just like this dire warning video, Dorgan has been often a lone voice, speaking statistic after statistic, fact after fact, on the Senate floor, only to be completely ignored by our corporate lobbyist puppets called his colleagues.

Dorgan has a MBA, which also helps explain how he has such good financial acumen.

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