Eric Von Berg - Newmark Realty Capital - 595 Market Street, Suite 2550, San Francisco, CA 94105 - for loan quote: 415 956 9922

July 10, 2010

Financial Reform - can we keep it simple?

Finance reform is on hold, waiting for the successor to Senator Robert Byrd to vote it through. Will the new Bill do the trick though? Harvey Pitt, former chairman of the SEC, tells StreetWise columnist Suzanne McGee he's not happy with it.
We’ve got 2,500 pages, which ensures that pretty much no one in Congress has actually read it.
Ouch! Harvey Pitt would like to see three very simple elements:
First, a provision that anyone whose business or dealings have a significant impact on financial markets should be forced to supply significant data on their products and services, their liquidity and leverage, and so on to regulators.Secondly, we need to impose an obligation on government to analyze all this data and disseminate it... Finally, we need to set circuit breakers, something that will give government the ability to stop, look, listen... and identify any systemic threats.
A number of analysts are comparing Wall Street and BP. In his Global Research article, Can We Fix the Oil and Financial Crisis Before It's Too Late? Danny Schechter points to BP's frequent full-page ad “We may not always be perfect, but we will make this right” then asks "and who will make our economy right?"
I've been broadly quoted as saying finance is not that complicated and financial reform should not be that difficult. And yes, I do think you can explain it to a kindergartner (read my Mad Meat !). It should not be that hard to regulate