The International Monetary Fund proposed a draft of two global taxes — a bank tax, and a “FAT” tax against what politicians deem to be excessive salaries or bonuses in the financial sector — at the Washington G-20 meeting last weekend. The final version of the proposal to create what the IMF calls a “stable global financial system” will be discussed by G-20 nations at the Toronto summit in June.
In addition to valiant congressional efforts for increased transparency, the Federal Reserve System and its cohorts are being targeted with criminal complaints and multiple lawsuits that attempt to shed to light on the central bank’s “bailouts” and its manipulation of the stock market, the precious-metals market, and more.
"Congress is to be applauded for tackling financial regulatory reform," wrote U.S. Chamber of Commerce president Thomas J. Donahue in an op-ed piece published yesterday by the D.C. political journal, The Hill. But for most of the piece, Donahue appeared to be applauding with one hand, using the other to point to what the Chamber regards as a severe overreach in the regulatory bill now before the Senate.
Goldman Sachs Group, Inc. executive director Fabrice Tourre probably didn't help his company's public relations efforts (assuming it has some) by referring to an index that facilitates derivatives trading as "a little like Frankenstein turning against his own inventor." But Tourre made that observation in January 29, 2007 e-mail that predated the crisis in the subprime mortgage market.
Some of the opponents of the recently enacted health care legislation may have been premature with their warnings about "death panels." A death panel of sorts can be found in the Restoring American Financial Stability Act of 2010, the financial regulation bill that has Congress divided once again along partisan lines. The bill would establish in the U.S Bankruptcy Court in Delaware an ominous-sounding Orderly Liquidation Authority Panel to preside over the (presumably) orderly process of putting out of business a large bank or non-banking financial firm whose "financial distress or failure" could create "risks to the financial stability of the United States..."