Senator Christopher Dodd's financial reform bill to give huge powers to Federal Reserve

Vatic Note:   Many of you have been with me for years and have memories of some of the experiences I have shared.  Remember the first bail out when I called Dodds office and faxed over to his staff proof of fraud through lehman bros, the fed res, and US treasury paulson?   The staffer took the info and passed it around, I called back and asked what they thought of the proof and it ws the first time he was not very open while before he was enthusaistic about getting such proof.   I asked what the agenda on the bail "really" was, and he would not answer (at least he didn't lie) and finally, knowing he would not answer, I asked point blank "IS THIS ABOUT GLOBALIZING?)  and he said "YES"  and ended the conversation. 
This bill must be fought with every ounce of our energy, since this will place our entire financial system economically,  digitially, chipping in lieu of currency, etc, in the hands FULLY AND PERMANENTLY OF THE ROTHSCHILD BANKING CONSORTIUM and remember they are the real crown of britian, so we are then back under Empire once again.  THIS MUST BE FOUGHT.   Dodd is leaving as the traitor he is. 

Source:   Reuters,  NY Daily News,  provided by Jim Kirwan

Title:   Senator Christopher Dodd's financial reform bill to give huge powers to Federal Reserve


http://www.nydailynews.com/money/2010/03/15/2010-03-15_senator_christopher_dodds_financial_reform_bill_to_give_huge_powers_to_federal_r.html?print=1&page=all


By:    staff
Date:       3/15/2010

The Federal Reserve would gain new powers over non-bank financial firms and keep much of its authority over banks under a new bill to be unveiled on Monday by the Senate's architect of financial reform.


In a turnaround for the central bank after months of public criticism, Senate Banking Committee Chairman Christopher Dodd was poised to release a bill that leans heavily on the Fed to fix the U.S. financial system, sources said on Sunday.

Not only would a new government watchdog for financial consumers be housed within the Fed, it would also retain much of its present authority over large bank holding companies and gain new authority over selected non-bank financial firms.

Sources said the Fed would also continue supervising smaller, state-chartered banks now in the Fed system -- a change from an earlier proposal that would have transferred those banks to Federal Deposit Insurance Corp. supervision.

The plans could yet change, sources said, with weeks to go before Congress completes its long debate on regulatory reform after the worst U.S. financial crisis in generations tipped the economy into recession and shook markets worldwide.

With Republicans and bank lobbyists working to weaken and block new rules, the push for reform could fail in the Senate. That would hurt Democrats and President Barack Obama as they head into November elections already short on achievements.

But the release on Monday of Dodd's bill will move the Senate closer to a decisive vote.

In an interview, Dodd, a Democrat, told Reuters he would present his bill at a news conference scheduled for 6 p.m. EDT and he threw down a challenge to Republican committee colleagues who wrote him a letter on Friday seeking more time to study the issue.

DEMAND FOR TIME "TERRIBLY NAIVE": DODD

He called their demands "terribly naive." After months of debate, Dodd told Reuters, the road to financial reform is still difficult, but navigable.

"If you want to work with me ... we can do it. If you don't, you can walk away or delay or say we shouldn't be meeting. But if you're interested in getting a bill, the door's open," Dodd said.

Tightening oversight of banks and capital markets is a top priority for Obama. But almost two years since the near collapse of former Wall Street giant Bear Stearns, followed by the fall of Lehman Brothers, regulation has changed little.

Obama proposed sweeping reforms in mid-2009. Most of them were approved in December by the House of Representatives.

The Senate has yet to act. Dodd released a draft bill in November that Republicans immediately rejected. He has been working to find compromises ever since.

He told Reuters his new bill will call for "orderly liquidation" of large financial firms that get into trouble and pose a risk to economic stability. The goal is to avoid on-the-fly bailouts like the ones the Bush administration undertook in 2008 for AIG and Citigroup.

Dodd said his bill would set up a council of regulators "that has power, authority and responsibility to look over the landscape, both at home and abroad, for emerging problems that could pose a systemic risk to our financial system."

OTC DERIVATIVES TARGETED

He said the bill will contain the same proposals he made in November for policing the $450-trillion over-the-counter derivatives market, partly through more trading on exchanges. But he said he was open to ideas being discussed by committee members Democrat Jack Reed and Republican Judd Gregg.

He also said the bill will have provisions offering investors greater power in corporate governance.  (guess who the investors are? Bankers.)

On bank supervision, sources who asked not to be named said the Dodd bill would give the Fed authority to supervise bank holding companies with more than $50 billion in assets, lower than an earlier proposed threshold of $100 billion.

The bill will also preserve the Fed's power over state-chartered banks with less than $50 billion in assets that are already in the Federal Reserve system, sources said.

An earlier proposal had called for transferring responsibility for supervising such banks to the FDIC, which already oversees state-chartered banks outside the Fed system.

If the state-chartered banks stay under the Fed's umbrella, it would have power over hundreds of banks large and small, as well as branches of foreign banks, sources said.

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