Financial Reform: Can Markets Survive the Chris & Barney Show?

Financial Reform: Can Markets Survive the Chris & Barney Show?

Op-Ed

Financial Reform: Can Markets Survive the Chris & Barney Show?

I hardly have time to read the 1,500-page financial reform bill, let alone, given how such monsters are crafted, could I understand it.  But I do understand why everyone should be scared when it becomes law….

Here’s why: The Chairmen of the Senate & House committees writing the bill were two prime reasons for the financial collapse.  Retiring Senator Chris Dodd (D-CT) protected sub-prime mortgage lenders like his pal Angelo Mozillo–who arranged sweetheart mortgage loans for Dodd–from prosecution, so enraging his constituents that they deserted him and thus forced him into retirement.  As for Barney Frank (D-MA), he ferociously protected America’s financial Fric & Frac, Fannie Mae & Freddie Mac, as they leveraged themselves at 75:1 shoveling out bad mortgage loans (Wall Street firms were leveraged only 30:1 to 40:1); Frank even accused those seeking to rein in Fannie & Freddie of endangering markets by telling what turned out to be the truth.

Neither Dodd nor Frank as repented since the collapse.  Like the 18th century French Bourbons, they have “learned nothing and forgotten nothing.”  Yet their colleagues entrusted them with captaining the writing the most important financial reform bill in decades–perhaps, since the Great Depression.  As for the 56 Democrats & 3 Republicans who voted for the bill, let alone the two Democrats who voted against it for not being even more onerous, they exemplify the kind of insular club mentality that enrages more & more voters.

I support financial reform, but not a bill written by those guilty as buccaneers in Wall Street–complicit with them and taking their campaign cash by the carload in multiple election cycles.

Bottom Line.  If you want the likes of Chris & Barney to write your financial reform rules, remind me not to get on a plane piloted by someone who flies planes as well as Chris & Barney regulate markets.

John C. Wohlstetter is the founder and editor of the blog “Letter from the Capitol,” and author of the book The Long War Ahead and the Short War Upon Us.  He is a senior fellow at Discovery Institute.  Wohlstetter has been a frequent guest on numerous nationally syndicated radio shows including Dennis Miller, Jerry Doyle and G. Gordon Liddy.  He is a regular contributor to the Fenton Report.

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