Romney: “On whether Republicans, including Paul Ryan, have used the unshackling/unchaining metaphor: “You know, I can’t speak for anybody else, but I can say the comments of the vice president, as I heard them, I thought were one more example of a divisive effort to keep from talking about the real issues. Look, no one is talking about deregulating Wall Street.” [dkos] (emphasis added)
Really?? Then what is this from the Romney Campaign site?
“Repeal Dodd-Frank and replace with streamlined, modern regulatory framework
Amend Sarbanes-Oxley to relieve mid-size companies from onerous requirements”
Evidently only the mystagogues, properly initiated into the mysteries of what former Massachusetts Governor Mitt Romney really means when he says anything, understand what repealing the Dodd-Frank Act and replacing it with something “modern” might include. And, what pray tell, constitutes a “mid-sized company?” Would that include Washington, D.C. lobby shops or capital management companies with fewer than 500 employees? Repealing the Dodd Frank Act means de-regulating Wall Street. Replacing the law with something appealing to the former CEO of Bain Capital Management sounds quite like de-regulating Wall Street.
Biden: “The details are there. Here’s what Congressman Ryan said. He said, ‘We believe a renewed commitment to limited government will unshackle our economy.’ The Speaker of the House said, used the word ‘unshackled’ as well, referring to their proposals. The last time these guys unshackled the economy, to use their term, they put the middle class in shackles. That’s how we got where we are.” [Fox]
Fox, not unexpectedly, headlined something like Biden doubles down on racist rhetoric. Well, now who knew Ray Charles was being racist when he sang, “Unchain My Heart!” And to think, Joe Cocker covered Unchain My Heart; clutch Pearls everyone — the racism is everywhere.
Or when the incomparable Aretha Franklin sings, “Chain of Fools” is she doubling down on racist lyrics? Who was aware of the racism impartible in the Righteous Brothers’ Unchained Melody?
Enough of the silliness — What did happen the last time we Unchained, Unshackled, Unfettered, Unfastened, Unloosened, or Unconfined Wall Street?
** As of October 28, 2008 the Guardian reported the Bank of England calculating global economic losses of $2.8 trillion.
** By April 2010 the Pew Trusts reported the following impact on U.S. economic growth:
The financial crisis cost the U.S. an estimated $648 billion due to slower economic growth, as measured by the difference between the Congressional Budget Office (CBO) economic forecast made in September 2008 and the actual performance of the economy from September 2008 through the end of 2009. That equates to an average of approximately $5,800 in lost income for each U.S. household.
** In May 2012 PBS reported:
With home prices tanking, the Treasury report estimates a loss of $7 trillion in the real estate industry. The stock market decline has brought another $11 trillion in losses, and retirement accounts have lost $3.4 trillion.
** On June 11, 2012 USA Today reported the total loss to U.S. median household income attributable to the 2008 crash and recession as 39% between 2007 and 2010. And who got hurt? “The median family’s net worth dropped to $77,300 from $126,400 in 2007, the Fed said. The wealthiest 10% of families saw their median net worth rise 1.9% to $1.17 million.”
In case we were all so naive as to believe that the Bankers have learned their lessons from the 2008 Debacle, consider the following:
The London Whale
JPMorgan Chase said Friday that a bad trade cost the bank $5.8billion this year, almost triple its original estimate, and raised the prospect that traders lied to cover up the multi-billion blunder. The bank said managers tied to the bad trade had been fired without severance and that it planned to revoke two years’ worth of pay from each of those executives.
The infamous so-called ‘London whale’ trader Bruno Iksil, who placed the extremely risky bets on the credit market prompting the massive loss, has also left the bank. [DailyMail]
The Libor Scandal
“Caught with its hand in the cookie jar, Barclays agreed to pay nearly half a billion in fines to British and American authorities, and as many as 20 other megabanks are under investigation, including Deutsche Bank, Citigroup, UBS, HSBC, and JPMorgan Chase. As one MIT authority on finance told CNN, “This dwarfs by orders of magnitude any financial scams in the history of markets.” [Salon] See also: AOLonline News.
Standard Charter Iran Deals
Standard Chartered may be looking to wrap things up quickly as it defends itself against allegations it hid $250 billion in transactions tied to Iran.
The bank is scrambling to reach a settlement early, ahead of a Wednesday showdown with New York regulators, and has discussed a settlement figure, Reuters reported, citing sources familiar with the situation. [NY DailyNews] [PolicyMic]
Standard Chartered Plc may have to pay as much as three times more than the $340 million it was fined by a New York regulator to settle all the probes by regulators into its transactions for Iranian clients.
The bank may have to disburse a total of $1 billion as regulators including the U.S. Treasury, Federal Reserve, Justice Department and Manhattan District Attorney negotiate settlements with the bank, according to Simon Morris, a regulatory lawyer at CMS Cameron McKenna in London. Cormac Leech, an analyst at Liberum Capital, put the total cost at $700 million. [Business Week]
Unchained, unshackled, unfettered, unconstrained, unfastened, and unloosened the melodies sung from the heartless to the chain of fools who advocate for de-regulation aren’t music to the ears of anyone who’s been paying attention to the fiascoes and frauds in the financial industry of late. Perhaps Governor Romney and Representative Ryan, and their sidekick Senator Heller, might want to change tunes?