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Monday, August 10, 2009

Analysis: Fed, Frank, GE battle Treasury over regulatory reform

*in case you were wondering what change is likely to come out of this financial crisis: CATEGORICALLY NOTHING and we need look no further than our old friend Barney Frank. Will someone please run against him in Massachusetts.

The Wall Street Journal
While the Treasury is trying to close loopholes that are seen as having contributed to the financial crisis, its efforts are hitting stumbling blocks, columnist Peter Eavis explains. Under proposed measures, General Electric, as well as other nonfinancial companies, would have to become bank holding companies. However, the Treasury does not want nonfinancial companies supervised by banking regulators, so it wants those companies to split off their finance divisions. The proposal has sparked a dispute with the Treasury on one side and the Federal Reserve, Rep. Barney Frank, D-Mass., and GE on the other.

*so GE comes so close to bankruptcy that Paulson has to ask Buffett to come and save them or it's all over. Now that Geithner wants to do something right, like force GE to spin off their financial arm, after you have bungled the group AGAIN (they tried to do this in the 90's under Welch and lost their underwear then too), but good ole Barney saves GE's day by stepping in front on this claiming GE should be able to do whatever it wants at TAXPAYER expense!

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