Friday, June 25, 2010
Financial Reform or Financial Nonsense?!
What does the new banking reform mean for Wall Street? Let me put it this way, a president who received millions of campaign dollars from organizations like Goldman Sachs is not going to challenge their primacy by way of legislative reform. This so called reform is a front.
The legislation gives the Federal Reserve more power. It will have more consumer regulation powers. The derivative problem is not addressed and we're back at square one.
Predicatively, the too big to fail banks enjoyed a boast in stocks. Bank of America Corp. surged 2%, Goldman Sachs and JPMorgan Chase each increase more than 3%.
The Bottom line: The Federal Reserve gets more power and the too big to fail banks will run free (until they suffer from another meltdown and need to bum money off the taxpayers.)
Enjoy your weekend!