The House of Representatives again decided not to pass cramdown, that is the practice of allowing bankruptcy court judges to alter the terms of mortgage loans, in a clear victory for the taxpayer funded banking industry.
When this sort of thing keeps happening, you know that the Congress remains a captive of the financial services industry.
Most of the “regulatory reform” that will pass does absolutely nothing to limit the size and power of Wall Street.
A few caps on pay may be popular, and a fig leaf of transparency may make derivatives trading seem benign, but too big to fail remains the guiding principle behind Washington’s approach.
It’s an abrogation of both fiduciary duty and moral hazard that all but guarantees the next big bubble disaster.
Gorilla says: “Volcker was right, the only thing innovative in the banking industry for 30 years was the ATM, and now there’s one in every Congressional office!”
