Rortybomb: 6 things to look for in Senate finance bill.

Post #325,135 by Another Scott 4/24/10 9:57:35 AM Reply	Rortybomb: 6 things to look for in Senate finance bill. http://rortybomb.wor...-the-senate-bill/ Cheers, Scott.
Post #325,143 by boxley 4/24/10 11:47:04 AM Reply	not enough the following is on commerical banks as opposed to investment banks and hedge funds derivatives on exchanges, commercial banks cannot trade derivatives offshore, must use an exchange to receive any govt assistance from self funded bailout plans cannot insure more than 75% of cdo or other financial offerings cannot trade/swap interest rates cap at 18-1 debt ratios mark to market on liquid liabilities only (yes I know that is risky) just a start If we torture the data long enough, it will confess. (Ronald Coase, Nobel Prize for Economic Sciences, 1991)
Post #325,146 by Another Scott 4/24/10 12:33:40 PM Reply	The "self funded bailout fund" isn't. It's a "wipe out the stockholders and shut down the company" fund - aka "Orderly Liquidation Fund": http://www.politifac...uards-financial-/ The March 15 version of the bill is here - http://banking.senat...gislationBill.pdf (1336 page .pdf). The OLF is in Title II, Section 201, starting at page 107 of the PDF. SEC. 204. ORDERLY LIQUIDATION. (a) PURPOSE OF ORDERLY LIQUIDATION AUTHORITY.ÂIt is the purpose of this title to provide the necessary authority to liquidate failing financial companies that pose a significant risk to the financial stability of the United States in a manner that mitigates such risk and minimizes moral hazard. The authority provided in this title shall be exercised in the manner that best fulfills such purpose, with the strong presumption thatÂ (1) creditors and shareholders will bear the losses of the financial company; (2) management responsible for the condition of the financial company will not be retained; and (3) the Corporation and other appropriate agencies will take all steps necessary and appropriate to assure that all parties, including management and third parties, having responsibility for the condition of the financial company bear losses consistent with their responsibility, including actions for damages, restitution, and recoupment of compensation and other gains not compatible with such responsibility. It's not a "bailout fund". I don't have much of an opinion on your other proposals, yet. ;-) HTH. Cheers, Scott.
Post #325,150 by boxley 4/24/10 1:08:18 PM Reply	do you really think that will pass :-) If we torture the data long enough, it will confess. (Ronald Coase, Nobel Prize for Economic Sciences, 1991)
Post #325,152 by drook 4/24/10 1:18:46 PM Reply	"It won't pass, so we won't ask." Democrats need to stop thinking like that. And Republicans know it, which is why they keep telling Democrats to "be reasonable". If you start by eliminating everything that the opposition won't pass, you've just given up your negotiating position. -- Drew
Post #325,147 by drook 4/24/10 1:00:39 PM Reply	Government is insane Strong derivatives language crafted by Senator Lincoln has passed through the Agriculture Committee. The *Agrigulture* Committee?! Is this the news or did I accidentally start reading Gulliver's Travels? -- Drew
Post #325,149 by boxley 4/24/10 1:07:26 PM Reply	everything goes thru the agricultural commitee If we torture the data long enough, it will confess. (Ronald Coase, Nobel Prize for Economic Sciences, 1991)
Post #325,158 by beepster 4/24/10 7:09:46 PM 4/24/10 7:10:01 PM Reply	Our best at work... I will choose a path that's clear. I will choose freewill. Edited by beepster April 24, 2010, 07:10:01 PM EDT Expand All History
Post #325,356 by mhuber 4/28/10 5:11:02 AM Reply	Why not BATF? Historically, it would appear that the entire concept of law derives from Mesopotamian regulations regarding the distribution of an alcoholic beverage produced by following the lyrics of the Hymn to Ninkasi (oldest known recipe for anything). That beverage was more or less what we would call beer, but a bit more complicated and without pressure vessels and usually consumed via a gold straw (I suspect there was also a cheaper tool) in mid-ferment. So the entire government, historically, is a branch of the BATF. But not the tobacco or firearms part. This is an odd species, in case you hadn't noticed. --------------------------------------- Why, yes, I did give up something for lent. I gave up making sense.
Post #325,160 by Another Scott 4/24/10 7:23:46 PM Reply	Old news. As I understand it, derivatives grew out of agricultural hedging - pork bellies, corn for delivery in 6 months, etc. Which was under the purview of the Agriculture committees. It's not totally senseless for it to be there. http://www.rollcall....news/45481-1.html A derivative is a financial product in which investors bet on the future price of commodities or other financial products. Derivatives are often used by companies who want to try to lock down lower prices for commodities, such as oil or agricultural goods. In recent years, the derivatives market that bases its futures on financial products has ballooned. For example, investors can bet on future changes in interest rates or on the credit risks associated with loans or other financial instruments. Yes, it probably should be rationalized and put with the rest of the Finance stuff now. Cheers, Scott.

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