Before You Invest Your Money » Congress http://before-you-invest.com This site monitors financial news articles that track corporate fraud and white collar crimes as they happen across the world. Sat, 31 Jul 2010 15:15:00 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 Greenspan: Low interest rates did not lead to financial crisis http://before-you-invest.com/greenspan-low-interest-rates-did-not-lead-to-financial-crisis/ http://before-you-invest.com/greenspan-low-interest-rates-did-not-lead-to-financial-crisis/#comments Thu, 08 Apr 2010 13:18:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-5864313874209105742 The US Federal Reserve’s (Fed) policy of maintaining low interest rates did not lead to the onset of the financial crisis, Alan Greenspan has claimed.

Mr Greenspan, former governor of the Fed, made the comments as part of the Financial Crisis Inquiry hearing in congress.

In a prepared statement to the investigating panel, he said: “It was the global proliferation of securitised US subprime mortgages that was the immediate trigger of the current crisis.”

Long-term rates led to the securitization of subprime mortgages, an area which was outside the Fed’s control, the former head of the organisation explained.

He added that this was “not [due to] the overnight rates of central banks, as has become the seeming conventional wisdom”.

In his testimony, Mr Greenspan also warned that more steps need to be taken to prevent banks from becoming “too big to fail”.

“The existence of systemically threatening institutions is among the major regulatory problems for which there are no good solutions.”

The 84 year-old was head of the US central bank between 1987 and 2006.

Greenspan: Low interest rates did not lead to financial crisis is a post from: Before You Invest Your Money

]]> The US Federal Reserve’s (Fed) policy of maintaining low interest rates did not lead to the onset of the financial crisis, Alan Greenspan has claimed.

Mr Greenspan, former governor of the Fed, made the comments as part of the Financial Crisis Inquiry hearing in congress.

In a prepared statement to the investigating panel, he said: “It was the global proliferation of securitised US subprime mortgages that was the immediate trigger of the current crisis.”

Long-term rates led to the securitization of subprime mortgages, an area which was outside the Fed’s control, the former head of the organisation clarified.

He added that this was “not [due to] the overnight rates of central banks, as has become the seeming conventional wisdom”.

In his testimony, Mr Greenspan also warned that more steps need to be taken to prevent banks from becoming “too huge to fail”.

“The existence of systemically threatening institutions is among the major regulatory problems for which there are no excellent solutions.”

The 84 year-ancient was head of the US central bank between 1987 and 2006.

Greenspan: Low interest rates did not lead to financial crisis is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/greenspan-low-interest-rates-did-not-lead-to-financial-crisis/feed/ 0 Obama defends plan to charge banks to recoup TARP funds http://before-you-invest.com/obama-defends-plan-to-charge-banks-to-recoup-tarp-funds/ http://before-you-invest.com/obama-defends-plan-to-charge-banks-to-recoup-tarp-funds/#comments Sat, 16 Jan 2010 17:36:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-947616938868746944

Obama defends plan to charge banks to recoup TARP funds is a post from: Before You Invest Your Money

]]> In his weekly radio and Internet address, President Barack Obama defended his proposal to subject as many as 50 financial institutions to a levy to recoup the cost of the Troubled Asset Relief Program. Obama also vowed to enact legislation that would rein in practices and strategies that caused the financial crisis. Meanwhile, Democratic leaders in the House said they reckon Congress will support the fee. “I reckon Congress will go along,” Rep. Chris Van Hollen said. “There’s a real sense in Congress that it’s time for the banks to pay back the taxpayers.”

Obama defends plan to charge banks to recoup TARP funds is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/obama-defends-plan-to-charge-banks-to-recoup-tarp-funds/feed/ 0 House Kills Amendement Aimed at Expanding FINRA’s Power http://before-you-invest.com/house-kills-amendement-aimed-at-expanding-finras-power/ http://before-you-invest.com/house-kills-amendement-aimed-at-expanding-finras-power/#comments Fri, 11 Dec 2009 17:36:00 +0000 Before You Invest tag:blogger.com,1999:blog-706213494996385248.post-6757728458871541158
The amendment, submitted by Republican Representative Spencer Bachus, R-Alabama, was part of the Investor Protection Act of 2009. The bill, which also includes a single fiduciary standard for registered investment advisers and independent broker-dealers, is one part of a move by Congress to reform the financial industry.

Bauchus agreed with the decision to scrap the amendment, but indicated that he would investigate alternatives to regulate advisers.

House Kills Amendement Aimed at Expanding FINRA’s Power is a post from: Before You Invest Your Money

]]> The House passed an amendment killing a proposal that would have given the Securities and Exchange Commission (SEC) the power to allow the Financial Industry Regulatory Authority (FINRA) to carry out oversight on investment advisers working at broker-dealer firms.

The amendment, submitted by Republican Representative Spencer Bachus, R-Alabama, was part of the Investor Protection Act of 2009. The bill, which also includes a single fiduciary standard for registered investment advisers and independent broker-dealers, is one part of a go by Congress to reform the financial industry.

Bauchus agreed with the choice to scrap the amendment, but indicated that he would investigate alternatives to regulate advisers.

House Kills Amendement Aimed at Expanding FINRA’s Power is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/house-kills-amendement-aimed-at-expanding-finras-power/feed/ 0 This Day in Wall Street History 1987: Chicago Board of Trade implements daily price ceilings http://before-you-invest.com/this-day-in-wall-street-history-1987-chicago-board-of-trade-implements-daily-price-ceilings/ http://before-you-invest.com/this-day-in-wall-street-history-1987-chicago-board-of-trade-implements-daily-price-ceilings/#comments Mon, 23 Nov 2009 18:12:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-3781168422554231860
On this day in 1987, the Chicago Board of Trade took its own precautionary steps, implementing a daily price ceiling on the Major Market Index future, as well as the Institutional Index future.

Under these limits, the 20 stocks on the Major and Institutional indices were restricted to moves of no more than 40 and 25 points, respectively.

Following the October debacle, Wall Street officials came under fire for failing to reign in and regulate index-futures trading; the move by the Chicago Board was a step toward quieting these claims, as well as holding off potential legislative action by Congress or federal officials.

Source: History.com

This Day in Wall Street History 1987: Chicago Board of Trade implements daily price ceilings is a post from: Before You Invest Your Money

]]> With Wall Street still feeling the effects of the record crash of October 1987, futures exchanges scrambled to prevent any more precipitous declines.

On this day in 1987, the Chicago Board of Trade took its own precautionary steps, implementing a daily price ceiling on the Major Market Index future, as well as the Institutional Index future.

Under these limits, the 20 stocks on the Major and Institutional indices were restricted to moves of no more than 40 and 25 points, respectively.

Following the October debacle, Wall Street officials came under fire for failing to reign in and regulate index-futures trading; the go by the Chicago Board was a step toward quieting these claims, as well as holding off potential legislative action by Congress or federal officials.

Source: History.com

This Day in Wall Street History 1987: Chicago Board of Trade implements daily price ceilings is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/this-day-in-wall-street-history-1987-chicago-board-of-trade-implements-daily-price-ceilings/feed/ 0 Firms try to prevent reinstatement of Glass-Steagall Act http://before-you-invest.com/firms-try-to-prevent-reinstatement-of-glass-steagall-act/ http://before-you-invest.com/firms-try-to-prevent-reinstatement-of-glass-steagall-act/#comments Sat, 14 Nov 2009 06:55:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-483011583404789244

Firms try to prevent reinstatement of Glass-Steagall Act is a post from: Before You Invest Your Money

]]> Former President Bill Clinton repealed the Glass-Steagall Act, which split investment-banking activities from retail-banking operations, a decade ago. Congress is considering reinstating the measure, and financial firms are scrambling to prevent the change. “We’re playing with live ammo,” said Sam Geduldig, a lobbyist at Clark Lytle & Geduldig who represents financial-services companies. “The banking community is rightfully concerned.”

Firms try to prevent reinstatement of Glass-Steagall Act is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/firms-try-to-prevent-reinstatement-of-glass-steagall-act/feed/ 0 New Provision in Investors Protection Act to Provide FINRA with Additional Power http://before-you-invest.com/new-provision-in-investors-protection-act-to-provide-finra-with-additional-power/ http://before-you-invest.com/new-provision-in-investors-protection-act-to-provide-finra-with-additional-power/#comments Thu, 29 Oct 2009 19:52:00 +0000 Before You Invest tag:blogger.com,1999:blog-706213494996385248.post-207747150892430838
Though some agree with this move while others oppose, it came as a shock to both sides that the amendment was added so easily to the language of the bill. If the IPA passes in its current iteration, FINRA would in essence have the power to oversee any adviser associated with a registered broker-dealer. That power, if exercised, would include a major percentage of the investment advisory business.

The amendment was submitted by Republican Representative Spencer Bachus, R-Alabama. The entire bill, which also includes a single fiduciary standard for registered investment advisers and independent broker-dealers, is one part of a move by Congress to reform the financial industry. The complete bill is expected to be approved for full House consideration by Wednesday.

New Provision in Investors Protection Act to Provide FINRA with Additional Power is a post from: Before You Invest Your Money

]]> In a recently added amendment to the Investor Protection Act (IPA) of 2009, the Securities and Exchange Commission (SEC) would have the power to allow the Financial Industry Regulatory Authority (FINRA) to carry out oversight on investment advisers working at broker-dealer firms.

Though some agree with this go while others oppose, it came as a shock to both sides that the amendment was added so easily to the language of the bill. If the IPA passes in its current iteration, FINRA would in essence have the power to oversee any adviser associated with a registered broker-dealer. That power, if exercised, would include a major percentage of the investment advisory business.

The amendment was submitted by Republican Representative Spencer Bachus, R-Alabama. The entire bill, which also includes a single fiduciary standard for registered investment advisers and independent broker-dealers, is one part of a go by Congress to reform the financial industry. The complete bill is expected to be approved for full House consideration by Wednesday.

New Provision in Investors Protection Act to Provide FINRA with Additional Power is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/new-provision-in-investors-protection-act-to-provide-finra-with-additional-power/feed/ 0 Regulating derivatives could do more harm than good http://before-you-invest.com/regulating-derivatives-could-do-more-harm-than-good/ http://before-you-invest.com/regulating-derivatives-could-do-more-harm-than-good/#comments Fri, 23 Oct 2009 03:59:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-3710777938879875276 Rep. Eric Cantor, R-Va., writes that lawmakers are focusing on an easy target -- the derivatives market -- rather than identifying and tackling the root causes of the global financial crisis. Cantor, the Republican whip, warns that new regulations being considered by Congress could do irreparable damage to businesses and consumers. "Rather than the tool for gross financial manipulation it is portrayed to be, the derivatives market plays a very important role in solidifying the competitiveness of American businesses," Cantor writes.

Regulating derivatives could do more harm than good is a post from: Before You Invest Your Money

]]> Rep. Eric Cantor, R-Va., writes that lawmakers are focusing on an simple target — the derivatives market — rather than identifying and tackling the root causes of the global financial crisis. Cantor, the Republican whip, warns that new regulations being considered by Congress could do irreparable hurt to businesses and consumers. “Rather than the tool for yucky financial manipulation it is described to be, the derivatives market plays a very vital role in solidifying the competitiveness of American businesses,” Cantor writes.

Regulating derivatives could do more harm than good is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/regulating-derivatives-could-do-more-harm-than-good/feed/ 0 This Day in Wall Street History 1914: Nation’s first income tax http://before-you-invest.com/this-day-in-wall-street-history-1914-nations-first-income-tax/ http://before-you-invest.com/this-day-in-wall-street-history-1914-nations-first-income-tax/#comments Thu, 22 Oct 2009 14:36:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-5752431268515036662
Source: History.com

This Day in Wall Street History 1914: Nation’s first income tax is a post from: Before You Invest Your Money

]]> The passage of the anti-protectionist “Underwood-Simmons Act” took a bite out of the nation’s pocketbook. To compensate for the lost income, Congress passed the “Revenue Act” on Oct. 22, 1914, mandating the first tax on incomes over $3,000.

Source: History.com

This Day in Wall Street History 1914: Nation’s first income tax is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/this-day-in-wall-street-history-1914-nations-first-income-tax/feed/ 0 Blankfein questions resentment directed at Goldman http://before-you-invest.com/blankfein-questions-resentment-directed-at-goldman/ http://before-you-invest.com/blankfein-questions-resentment-directed-at-goldman/#comments Sun, 30 Aug 2009 00:09:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-1434658878287436569 During the past six months, Goldman Sachs has taken risks and been handsomely rewarded for it. The firm repaid billions of dollars the government forced it to take in the fall, raised billions more from Warren Buffett and other investors, and encouraged its executives to tone down activities that could be construed as conspicuous consumption. Despite all of these efforts, Goldman has been the target of much resentment from its rivals, the media, Congress and the public, raising questions from CEO Lloyd Blankfein.

more at

Blankfein questions resentment directed at Goldman is a post from: Before You Invest Your Money

]]> During the past six months, Goldman Sachs has taken risks and been handsomely rewarded for it. The firm repaid billions of dollars the government forced it to take in the fall, raised billions more from Warren Buffett and other investors, and encouraged its executives to tone down activities that could be construed as conspicuous consumption. Despite all of these efforts, Goldman has been the target of much resentment from its rivals, the media, Congress and the public, raising questions from CEO Lloyd Blankfein.

more at

Blankfein questions resentment directed at Goldman is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/blankfein-questions-resentment-directed-at-goldman/feed/ 0 Geithner presses Congress for rules on derivatives market http://before-you-invest.com/geithner-presses-congress-for-rules-on-derivatives-market/ http://before-you-invest.com/geithner-presses-congress-for-rules-on-derivatives-market/#comments Fri, 10 Jul 2009 12:48:00 +0000 Before You Invest tag:blogger.com,1999:blog-7461018119073696961.post-3625382814950764274 Treasury Secretary Timothy Geithner is seeking laws for the $592 trillion derivatives market. Geithner is set to testify before a joint hearing of the House Agriculture and Financial Services committees to call for requiring all "standardized" contracts to be traded on exchanges or other regulated platforms. Disclosure rules also would apply to the derivatives contracts, Geithner said.

more at

Geithner presses Congress for rules on derivatives market is a post from: Before You Invest Your Money

]]> Treasury Secretary Timothy Geithner is seeking laws for the $592 trillion derivatives market. Geithner is set to testify before a joint hearing of the House Agriculture and Financial Services committees to call for requiring all “standardized” contracts to be traded on exchanges or other regulated platforms. Disclosure rules also would apply to the derivatives contracts, Geithner said.

more at

Geithner presses Congress for rules on derivatives market is a post from: Before You Invest Your Money

]]> http://before-you-invest.com/geithner-presses-congress-for-rules-on-derivatives-market/feed/ 0