"Wall Street Big Fish Rot From The Head Down" - Obama's failure

[WhiskeyGirl]

Wall Street Big Fish Rot From The Head Down

Robert Lenzner, 04.23.10, 05:25 PM EDT

Obama's financial reform will fail because all the masters of the universe know how to do is make money.

Regulatory reform on Wall Street would not have saved us from Richard Fuld's disastrous mismanagement of Lehman Brothers' finances and the ramifications of the greatest bankruptcy in American history. It is just plain absurd that Fuld claimed Lehman had no capital hole before it failed. Fuld's impossible-to-accept denial that he knew anything of accounting hanky-panky cannot get him free of the charge that when the fish stinks from the head, the whole fish may be caught in the net of its death throes.

Nor would the so-called Volcker rule to limit the size of major banks and their proprietary trading have stopped Bear Stearns chairman Jimmy Cayne from leaving his bridge tournament to return to New York to save his dying firm either. Absentee management and hubris about taking risk cannot be controlled by legislation.

more here - http://www.forbes.com/2010/04/23/richard-fuld-jimmy-cayne-barack-obama-streettalk-markets-lenzner.html?boxes=techchanneltopstories

Why not end the derivative gambling and require sound financial insurance products?  A return to the days before deregulation?

[WhiskeyGirl]

Senator Lincoln's Bill includes proposals that would stop banks who participate in the swaps market from gaining access to the Federal Reserve's discount window. If banks want to continue trading in derivatives, they will be forced to hive off such desks into separately capitalised entities. It also increases transparency for derivatives trades, calling for most to be performed through regulated exchanges and settled through clearing houses.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7616205/US-to-shine-light-on-derivatives-trading.html

Why aren't ALL going through exchanges and clearing houses?

What kind of secrets will remain hidden?  The dark pool of derivatives?

Why isn't Obama building financial fire walls to make sure no one gets a deadly virus?  When one nation sneezes, the others don't get the Spanish Influenza?