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"To be sure this is still a very stressful time for out financial system, but over time the strength of our society and systems will allow us to overcome this crisis," said Schumer, who went on to speculate that President-elect Barack Obama will choose a treasury secretary in the mold of Larry Summers.
Schumer continued on to say that the strength of the American financial system is built on a foundation of being pro-business and pro-regulation. "There's no tooth fairy, no Santa Claus, and no financial instrument that creates rewards without risk," he added. "The overhaul of the financial regulation system will be a major priority of the new Congress and is something we'll be starting on this session, but threading the needle between regulationary oversight and freedom for business is very difficult." Schumer warned. "The new regulatory systems must have the technology and authority to question and understand the risks that those they oversee are taking." To that end, Schumer advocated the creation of a single regulatory body for the U.S. financial system similar to the one in the U.K. "A regulatory framework that fails to recognize the global nature of financial firms will not be able to handle the task," Schumer said. "Our financial system has evolved into a system where there are a number of financial Jupiters orbited by asteroids. Today these firms don't operate in the same old ways, the rules do." Schumer outlined six principles he thinks Congress must adhere for regulatory reform:
- George White
CategoriesComments
From: Jay,
In the latest news concerning the financial meltdown Schumer who has often bragged about his intellectual abilities, now is saying that he did not understand the risks and the devices that the financial companies were using and he was protecting through deregulation. I would argue that Schumer can't have it both ways in intelligence and ignorance. I would suggest that instead of ignorance this Senator like the ladies of the street sold his services and intelligence to the highest bidder as often as he could.
Posted on:
December 16, 2008 6:19 PM
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Sen. Charles Schumer, D-N.Y., the opening speaker at the Securities Industry and Financial Markets Association's Summit on the Troubled Asset Relief Program, answered the question of what financial markets should be expecting in terms of regulatory reform from the new Congress.
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Schumer is clueless, talking out of both sides of his mouth, and thinks the rest of us are stupid.
Saying "We have to figure out how to regulate currently unregulated actors and exotic financial instruments," to THIS audience is effectively saying "HELP!I'm in over my head. I have to pretend I had no idea what you guys have been up to. I need you to write the regulations for me in language I can sell. It doesn't have to be effective, we just have to sell it! And I will be expecting buckets of money from you guys when I ram this through."
Not a single specific regulatory idea. As if there haven't a multitude of derivatives related crisis in the past 15 years that created systemic risk. And on top of it, he suggests a Treasury Secretary "in the mold of Larry Summers," a guy who was deeply against regulation of derivatives when he worked in Treasury in the 90's.