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Obama urges passage of financial regulatory reform

By Anne E. Kornblut

President Obama pushed Congress on Saturday to move ahead with financial regulatory reform, saying his job is not only to create jobs and help the country recover but also to prevent another economic meltdown.

"There's been a lot of discussion about technical aspects of the bill, and a lot of heated -- and frankly, sometimes misleading -- rhetoric coming from opponents of reform," Obama said in his weekly radio and Internet address. "All of this has helped obscure what reform would actually mean for you, the American people."

Obama cited consumer protection against predatory lending practices as chief among the reforms in the bill, which he also advocated during a trip this week to Buffalo, N.Y. There, he said, he met small business owners who were among the "worst victims of the excessive risk-taking on Wall Street that led to this crisis."

"Their credit dried up. They had to let people go. Some even shut their doors altogether. And unless we put in place real safeguards, we could see it happen all over again," he said.

Obama has been balancing regulatory reform with other priorities -- the oil spill in the Gulf of Mexico and the nomination of a Supreme Court justice -- but the issue may take a higher priority as it moves toward a vote.

"The reform bill being debated in the Senate will not solve every problem in our financial system -- no bill could. But what this strong bill will do is important, and I urge the Senate to pass it as soon as possible, so we can secure America's economic future in the 21st century," Obama said.

By Anne E. Kornblut  |  May 15, 2010; 6:00 AM ET
Categories:  44 The Obama Presidency  
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Comments

Here's the next on Obama's agenda - dealing with right-wing's excessive corporate welfare/personal wealth agenda and repealing or reforming tax loopholes & subsidies. It's not surprising that 1 out of 4 of the largest US corporations pay no tax,like Exxon Mobil, General Electric, Bank of America, and the majority pay at a 5% - 10% rate or lower, like Goldman Sachs, ...and hedge funds and private equity owners/managers, some with up to $1 billion in income, pay personal tax at 15% or less, or that over $100 billion in corp. tax is lost to offshore tax loopholes. Haliburton, which has benefitted from billions in no-bid US Defense Dept. contracts, has its HQ in Dubai so it can avoid paying tax, and even pays US employees from there, to avoid Medicare/Social Security tax (about $100 million a year.

The three corporations involved with the Gulf oil spill - BP, Haliburton and Transocean have HQ's in Cayman Is., Dubai, Switzerland & Bush subsidies, so pay little or no US tax. Haliburton was one of the first to complain about being levied a health care tax!!

When corporations and the wealthy avoid paying their tax, the burden falls on US taxpayers.

Below - $396 billion of annual potential lost federal income. Repealing/reforming these would generate close to $4 trillion over a decade:

LOST FEDERAL INCOME IN 2009 DUE TO BUSH (FEW CLINTON)CORPORATE TAX LOOPHOLES & SUBSIDIES – BURDEN SHIFTED TO US TAXPAYERS

$100 Billion - Offshore tax havens
$ 70 Billion* - Bush’s secret 9/09 tax policy change/windfall for Big Banks
$3.5 Billion – Tax cuts/subsidies for Big Oil
$7.7 Billion – International Tax Treaty Loophole
$4.5 Billion – Unpaid Payroll Taxes
$50 Billion - Carried Interest Tax Break
$50 Billion – Other Corporate Tax Avoidance/Secrecy
$500 Million – Reinstate Superfund Tax for Environmental Polluters
$2.5 Billion – Delinquent Taxes from Federal Contractors
$10 Billion - Wasteful Homeland Security Contracts
$3 Billion - Subsidies to Private Banks for Student Loans
$10 Billion - Reformed Estate Tax
$20 Billion - Reformed Executive Pay Subsidies
$15 Billion - Corp Subsidies for Private Health Insurers/2003 Medicare Rx Drug Act
$12 Billion - Overpayments to Medicare Advantage Insurers
$10 Billion – Reformed Farm Subsidies

*In Sept ’09, while Congress struggled with TARP, Bush quietly changed tax policies to give Big Wall St Banks an additional $140 billion windfall! Bilking the fed reserve, & meanwhile these banks dished out billions in bonuses and reduced lending.

http://www.washingtonpost.com/wp-dyn/content/article/2008/11/09/AR2008110902155_pf.html

Posted by: TruthFairy | May 16, 2010 10:45 AM | Report abuse

I agree that financial reform is needed and that consumers need better protection against predatory lending practices and misleading marketing of securities. Holding brokers to higher finduciary standards would be a step in the right direction - especially considering the many pitfalls for relatively unsophisticated investors who, for example, may purchase an investment, such as a synthetic CDO or credit default swap, without realizing the risk.

Re-enactment of the Glass-Steagall firewall would, I believe, help to eliminate the conflicts of interest inherent in allowing banks to engage in multiple types of businesses and give clients more confidence in their banks.

Posted by: billeisen1 | May 15, 2010 7:36 PM | Report abuse

I agree for the need for financial reform and that consumers need better protection. Holding brokers to higher finduciary standards would be a step in the right direction - especially considering the many pitfalls for relatively unsophisticated investors who may, for example, happen to purchase an investment, such as a synthetic CDO or credit default swap, without realizing the risk.

Re-enactment of the Glass-Steagall firewall would, I believe, help to eliminate the conflicts of interest inherent in allowing banks to engage in multiple types of businesses, including stock brokerage and insurance, and give clients more confidence in their banks.

Posted by: billeisen1 | May 15, 2010 7:24 PM | Report abuse

BTW WaPo---
it's called "Restoring American Financial Stability Act of 2010"
It's been amended in the Senate.
[S.3217.AS)

Posted by: TheBabeNemo | May 15, 2010 4:18 PM | Report abuse

scrivener50 - well, well, look who decided to show up???? (hearty grins)

The decimating of the global economy lies beneath the sea off the coast of Louisiana.

Forget the money. We might not have time for financial reform.

Posted by: TheBabeNemo | May 15, 2010 2:04 PM | Report abuse


URGENT TO POTUS / VPOTUS / A.G. HOLDER / MEMBERS OF CONGRESS:

IDEOLOGICAL AND HATE-BASED EXTRAJUDICIAL 'TARGETING' OF U.S. CITIZENS HAS HELPED DECIMATE THE GLOBAL ECONOMY.

PROGRAMS SOLD TO YOU UNDER THE BANNER OF 'NATIONAL SECURITY' INVOLVE FINANCIAL SABOTAGE AND SILENT MICROWAVE/RADIO FREQUENCY TORTURE AND IMPAIRMENT OF 'INNOCENT BUT TARGETED' AMERICANS.

YOU MUST TAKE DOWN THE FUSION CENTER SHADOW GOVERNMENT.

BEFORE IT TAKES YOU OVER.

http://nowpublic.com/world/u-s-silently-tortures-americans-cell-tower-microwaves

http://nowpublic.com/world/gestapo-usa-govt-funded-vigilante-network-terrorizes-america

OR NowPublic.com/scrivener re: "Obama: Take Down Fusion Center Gestapo..."

Posted by: scrivener50 | May 15, 2010 1:29 PM | Report abuse

Capitalism is for the individual to advance. Unless the equalbria is applied, one ends up with greed. The byproduct of capitalism.

I see I have to post the definitions again, just in case.
//
Democratic – self governing, elected

Republic – state, nation, democracy

Fascism-totalitarianism, dictatorship, repression, tyranny – opposite of democracy

Socialism-communism, Marxism, opposite of capitalism

Capitalism-free enterprise

Communism-collectivism, socialism, Marxism, opposite of capitalism

Tort –civil wrongdoing. In civil law, a wrongful act for which damages can be sought by the injured party.

Malpractice – professional misconduct, illegal, unethical, negligent, or immoral behavior by somebody in a professional or official position, resulting in a failure to fulfill the duties or responsibilities associated with that position.

And this is my line - no one can steal it.
"The behavior of capitalism will destroy capitalism."

And our enemies that call us the Zionist Machine are just waiting for it to happen. Heck, with the oil spill "going global" (not just our problem any longer), we just may see capitalism (true Adam Smith capitalism of the individual)
go down.

Don't worry, we will still have democracy. We fight for democracy on the battlefield. We don't fight for installation of capitalism.


Posted by: TheBabeNemo | May 15, 2010 12:55 PM | Report abuse

i see someone is advertising and having fun on this fine Saturday.

I just spent One Night in Bangkok. It was not pretty.

////

The financial reform. The regulations are still frozen I believe. So now is the best time to "clean up the regulations".
I know JPMorgan Chase should. The frozen regs still have all repulsives upset.

"Well gee, if you didn't keep breaking the regs and Code, maybe they wouldn't be frozen dudes"

to quote above sentence:
....."All of this has helped obscure what reform would actually mean for you, the American people...."

I agree totally. With the press saying one thing, repulsives trying to push conservatism, the banks coming down on homeowners if they are a month late with their mortgage payment.

The American people are lost on what is truly happening. Unless they are "in the biz" of all of this. The Code of Regulations is a mess. USCode, no one heeded it in this economic crisis that got us here.

The banks and mortgage lenders took the regulations and broke them. Case closed.
So why the big whoop about fighting the financial reform. Maybe businesses won't find loopholes in the CODE and actually start helping people.

Posted by: TheBabeNemo | May 15, 2010 12:46 PM | Report abuse

The new year approaching, click in. Let's facelift bar!
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fr ee sh i pp ing

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Posted by: itkonlyyou59 | May 15, 2010 11:22 AM | Report abuse

The new year approaching, click in. Let's facelift bar!
====== http://goph3r.com/189 =====
fr ee sh i pp ing

(jordan shoes) $32

(air max) $34
++++ http://elurl.com/atn ++++++++++
+++

wow
+++

wow


▍ ★∴
   ....▍▍....█▍ ☆ ★∵ ..../
   ◥█▅▅██▅▅██▅▅▅▅▅███◤
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Posted by: itkonlyyou59 | May 15, 2010 11:20 AM | Report abuse

"Capitalism stresses competition and profit, socialism calls for cooperation and social service. Cooperation is mandated through taxation and regulation by government to provide social services.
Capitalism is grounded in the concept of free enterprise, which argues that government intervention in the economy should be restricted and that a free market, based on supply and demand, will ultimately maximize consumer welfare."

Why Obama resents being labeled a Socialist surprises me as any of his policies easily answer the question, "What would a Socialist do?" It took a long time for Democrats to embrace the label Liberal. I suppose it is simply perceived as "bad PR" to acknowledge the same regarding "Socialist" although everyone clearly sees this Administration for what it is.

Posted by: 2009frank | May 15, 2010 10:08 AM | Report abuse

The socialist agenda of Obama will not work. He can divert attention by blaming the financial meltdown but the facts are that he has no idea of how to create jobs. He is a socialist regulator of high taxes and a nanny government. Greece and Spain and the European mess is coming here very very soon. We have high unemployment and high taxes and we are going to be taxed into oblivion by this guy. Socialism does not work because you soon run out of other people's money, said Margaret Thatcher and she understood it.

Posted by: LETFREEDOMRING2 | May 15, 2010 9:39 AM | Report abuse


Need a job? With new Obama Health Care Plan, we are going to insure additional 33 Million people. There is going to be huge demand for Medical Assistants, Medical Billing, Medical Coding, Pharmacy Assistant & Pharmacy Technician across the nation. We can help you get a training during weekends and evenings and get a degree in few months. With the degree finding a job will be easy, contact for more information at http://ow.ly/1KPBO this is your chance

Posted by: PansyTerezsa | May 15, 2010 6:13 AM | Report abuse

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