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To: Les H who wrote (203180)	5/20/2009 10:18:00 AM
From: James Hutton	Read Replies (2) \| Respond to of 306849

Yes, it is an end run around Congress (controlled by the President's party - that's another reason it's nutty). I only mean "smaller" in the sense that presumably there would be fewer employees/responsibilities for the SEC and a non-governmental body - the Fed would pick up those responsibilities. It's crazy - the Federal Reserve Board of New York - under the current Treasury Sec. was complicit in creating our current economic problems and now they give them more oversight (and enforcement?) authority? UFB.

To: Les H who wrote (203180)	5/20/2009 10:26:50 AM
From: ajtj99	Read Replies (1) \| Respond to of 306849

I get the feeling Summers is running things now, just like Cheney and Rove were running things before, although Summers' influence is limited to economic policy.

To: Les H who wrote (203180)	5/20/2009 12:59:43 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

Wednesday, May 20. 2009 Posted by Karl Denninger in Editorial at 08:12 Ok, You're A Crook Obama I was willing to give President Obama the benefit of the doubt. Not any more: May 19 (Bloomberg) -- The Obama administration may call for stripping the Securities and Exchange Commission of some of its duties under a regulatory reorganization that could be unveiled as soon as next week, people familiar with the matter said. The proposal, still being drafted, is likely to give the Federal Reserve more power to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies, the people said. On the table: giving oversight of mutual funds to a bank regulator or a new agency to police consumer-finance products, two people said. That is unconscionable. Go back and read the White Paper I published a couple of days ago. The Fed had primary responsibility for preventing banks from lending unsecured beyond their excess capital. Instead they willfully and intentionally covered up bank insolvency through the use of "23A" letters and other machinations. This is not conjecture - the historical record is present for anyone who cares to look. The 23A letters are a matter of fact, not supposition and the fact that several firms given them "in the interest of stability" later failed and resulted in significant losses to the system as a whole, including the FDIC, is also a fact. That "Prompt Corrective Action" absolutely barred this sort of action is a fact. That The Federal Reserve Act has been intentionally ignored is a fact. Now President Obama wishes to give the fox, who just got done eating half the chickens, formal status as guard over the henhouse? Please don't take this as an endorsement of the SEC. After all, the SEC in 2004 granted Henry Paulson's request (on behalf of Goldman and the other investment banks) to drop the 12:1 leverage limit - a change that we now know was directly responsible for the failure of both Bear Stearns and Lehman! For those who want to play "banker baseball" your ire is misplaced. We have formal regulatory structures in our government that are charged with preventing this sort of nonsense. These regulators have been sleeping (in some cases with) or actively conspiring along with those who created this mess; without an ignorant or complicit regulatory function it is not possible for the sort of game-playing that has gone on to occur, nor can the damage that happened our our economy come to pass. Heads need to roll across the board; we can argue about what agency should get regulatory responsibility going forward after we deal with ejecting sans parachute each and every person involved in intentional malfeasance or misfeasance thus far, including Geithner, Bernanke and all the "career folks" at the SEC who it is alleged have been trading on inside information! This nation desperately needs a statesman who will stand up and say "no more fraud and theft - period damnit! Every one of you jagoffs is going straight to prison!" We weren't going to get it with McCain and his condescending brand of political crap, but it has unfortunately become very clear that Obama is similarly compromised. Prepare for The Greater Depression folks, because with this sort of outrage and a refusal to address the problem through reform and punishment for the guilty who brought about this disaster it is inevitable. SPX 300 is on deck. PS: We need a new political party and we need it now. Disclosure: Short both Democrats and Republicans market-ticker.org