DOCSLIB.ORG

Dodd-Frank Wall Street Reform and Consumer Protection Act Viene Firmato Dal Presidente Barack Obama Il 21 Luglio 2010

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Dodd-Frank Wall Street Reform and Consumer Protection Act Viene Firmato Dal Presidente Barack Obama Il 21 Luglio 2010 Economia Finanziaria e Monetaria Lezione 14 – Recuperare stabilità: riforma finanziaria (UE vs. USA) 1 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 0. Outline Scaletta della lezione 14 1. Le buone intenzioni del G-20 del 2009 2. La ri-regolamentazione finanziaria USA 3. La ri-regolamentazione finanziaria UE 4. La ri-regolamentazione finanziaria in East Asia 5. Congruenze e divergenze tra UE, USA e East Asia 6. Il “lento pede” della ri-regolamentazione finanziaria 2 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 1. Le buone intenzioni del G-20 del 2009 – 1 Important decisions were agreed at the 2 April 2009 meeting of the G20 in London and at its 25 September 2009 meeting in Pittsburgh. The London meeting of the G20: Among the proposed measures the ones key to our discussion were: i) scaling up the resources available to the IMF for crisis prevention and assistance; ii) establishing the Financial Stability Board (FSB) with the mandate of collaborating with the IMF to provide early warning of macroeconomic and financial risks and the actions needed to address them; iii) reshaping regulatory systems to identify and take account of macro-prudential risks; iv) extending regulation and oversight to all systemically important financial institutions, instruments and markets, for the first time including systemically important hedge funds; 3 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 1. Le buone intenzioni del G-20 del 2009 – 2 The London meeting of the G20: (cont’d) v) endorsing and implementing the tough new principles on pay and compensation mandated by the Financial Stability Forum (predecessor to the FSB) and supporting sustainable compensation schemes and the corporate social responsibility of all firms; vi) taking action, once recovery is assured, to improve the quality, quantity, and international consistency of banks’ capital. In future, regulation should prevent excessive leverage and require buffers of resources to be built up in good times; vii) taking action against non-cooperative jurisdictions, including tax havens, standing ready to deploy sanctions to protect members’ public finances and financial systems; viii) calling on the accounting standard setters to work urgently with supervisors and regulators to improve standards on valuation and provisioning and achieve a single set of high-quality global accounting standards; 4 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 1. Le buone intenzioni del G-20 del 2009 – 3 The London meeting of the G20: (cont’d) ix) extending regulatory oversight and registration to Credit Rating Agencies to ensure they meet the international code of good practice, particularly to prevent unacceptable conflicts of interest. The Pittsburgh meeting of the G20: The outcome of the September 2009 meeting of the G20 suggests that the leaders’ attention is still focused on restoring financial stability via sounder regulation/supervision. The communiqué at the end of the meeting stresses that “reckless behaviour and a lack of responsibility led to crisis, we will not allow a return to banking as usual”. 5 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 1. Le buone intenzioni del G-20 del 2009 – 4 The Pittsburgh meeting of the G20: (cont’d) It also commits to: raise capital standards; implement strong international compensation standards aimed at ending practices that lead to excessive risk-taking; improve the over-the-counter derivatives market; and create more powerful tools to hold large global firms to account for the risks they take, where the standards for large global financial firms should be commensurate with the cost of their failure. The G20 mandates the FSB to include major emerging economies and coordinate and monitor progress in strengthening financial regulation. More specific measures are designated to: building high quality capital and mitigating pro- cyclicality; reforming compensation practices to support financial stability; improving over-the-counter derivatives markets; addressing cross-border resolutions and systemically important financial institutions. 6 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 1. Le buone intenzioni del G-20 del 2009 – 5 The Pittsburgh meeting of the G20: (cont’d) Regarding the controversial issue of the bonuses, it is agreed that more will be paid out in shares rather than cash, and more pay will be deferred. In particular, efforts will be made to tie remuneration more closely to long-term value creation—more paid in restricted shares, with employers able to claw back a portion if trades lead to big losses and multi-year bonus guarantees to be avoided. It is also worth noting that, in the preamble, the world leaders admonish “a sense of normalcy should not lead to complacency”. 7 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione finanziaria USA – 1 The US prospected reform: In the US, President Obama has put forward his blueprint for reform on 17 June 2009 (US Treasury, 2009). It is useful to summarise the main ingredients of the US reform plan for two chief reasons: i) to check whether the US prospected actions are consistent with those in the EU and East Asia; ii) because the US is still the most important financial centre and, thus, what is going to happen there cannot be disregarded elsewhere. In essence, this is a wide range proposal that, if adopted, would greatly overhaul the financial system. It tackles several issues with a macroprudential approach under the authority and responsibility of the Fed: 8 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione finanziaria USA – 2 The US prospected reform: (cont’d) 1) promoting robust supervision and regulation of financial firms: creating a Financial Services Oversight Council to facilitate information sharing and coordination, identify emerging risks and assist the Fed on the identification of firms whose failure could pose a threat to financial stability due to their combination of size, leverage, and interconnectedness (Tier 1 FHCs); facilitating coordination among all the relevant Agencies; implementing heightened consolidated supervision & regulation of all large, interconnected financial firms; strengthening capital and other prudential standards for all banks and BHCs; better aligning executive compensation practices of financial firms with long-term shareholder value and to prevent compensation practices from providing incentives that could threaten the safety and soundness of supervised institutions; 9 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione finanziaria USA – 3 The US prospected reform: (cont’d) 1) (cont’d) adopting accounting standards to induce financial firms to employ more forward-looking loan loss provisioning practices that incorporate a broader range of available credit information; revise fair value accounting rules to provide users of financial reports with both fair value information and greater transparency regarding the cash flows management expects to receive by holding investments; strengthening firewalls between banks and their affiliates to protect the federal safety net that supports banks and to prevent spread of the subsidy inherent in the federal safety net to bank affiliates; close loopholes in bank regulation; requiring hedge funds and other private pools of capital to register; reducing the susceptibility of money market mutual funds to runs; enhancing oversight of the insurance sector; 10 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione finanziaria USA – 4 The US prospected reform: (cont’d) 2) establishing comprehensive regulation of financial markets: strengthening supervision and regulation of securitisation markets requiring originators to retain an economic interest in a material portion of the credit risk of securitised credit exposures, aligning compensation of market participants with longer term performance of the underlying loans and increasing the transparency and standardization of securitisation markets requiring robust reporting by issuers of ABS; strengthening the regulation of credit rating agencies including robust policies/ procedures to manage and disclose conflicts of interest, differentiate between structured and other products, and otherwise strengthen the integrity of the ratings process and reducing the use of credit ratings in regulations and supervisory practices; creating comprehensive regulation of all OTC derivatives, including CDS; harmonizing futures and securities regulation. 11 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione finanziaria USA – 5 The US prospected reform: (cont’d) 3) protecting consumers and investors from financial abuse: creating a new Consumer Financial Protection Agency with the authority/responsibility to improve: a) transparency; b) simplicity; c) fairness; d) access; strengthening investor protection through the SEC. 4) providing the government with the tools it needs to manage financial crises: creating a resolution regime for failing BHCs, including Tier 1 FHCs; amending the Fed’s emergency lending authority so that it will not need prior written approval of the Secretary of the Treasury for any extensions of credit by the Fed to individuals, partnerships, or corporations in “unusual and exigent circumstances.” 12 Economia Finanziaria e Monetaria Giovanni Ferri Bari, EIMF 2012 2. La ri-regolamentazione
Load more

Recommended publications
  • Modernizing Financial Services: the Glass-Steagall Act Revisited
    MODERNIZING FINANCIAL SERVICES: THE GLASS-STEAGALL ACT REVISITED National Association of Federally-Insured Credit Unions NATIONAL ASSOCIATION OF FEDERALLY-INSURED CREDIT UNIONS | NAFCU.ORG | 1 INTRODUCTION: Since the financial crisis, the credit union industry has experienced significant consolidation in the financial marketplace while the largest banks have reaped record profits and grown in both size and scope. From 2008 to 2017, the National Credit Union Administration (NCUA) chartered only 29 new federal credit unions while, during that same period, 2,528 credit unions closed or merged out of existence. The post-crisis regulatory environment has contributed to this decade-long trend of consolidation, but credit unions have also faced barriers to growth in the form of field of membership rules, capital requirements, and limits on interest rates, among many other restrictions. Accordingly, while it is essential to promote regulatory relief that reduces compliance burdens, credit unions also need modern rules to evolve and grow. Regulatory burden and the pressure to consolidate affects more than just the credit union industry. Community banks have experienced similar declines.1 The lack of new charters among community institutions illustrates the extent to which complex and poorly tailored regulations have put a stranglehold on growth and, by extension, limited consumer financial services. In recognition of these trends and the need for regulatory relief, Congress recently passed the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155). S. 2155 garnered bipartisan support and helped alleviate some burdens associated with reporting under the Home Mortgage Disclosure Act and the NCUA’s member business lending rules, and provided new safe harbors for compliance with federal consumer financial protection laws.
    [Show full text]
  • Executive Intelligence Review, Volume 36, Number 30, August 7, 2009
    Executive Intelligence Review EIRAugust 7, 2009 Vol. 36 No. 30 www.larouchepub.com $10.00 Reality of Collapse Destroys Fantasy of Recovery The Incredible Shrinking Obama Presidency ‘China Youth Daily’ Circulates LaRouche’s Proposals LaRouche Webcast: The Fall Of the House of Windsor SUBSCRIBE TO EIR ONLINE The Banking System Has Already Collapsed! “There is no possibility of a non-collapse of the present financial system—none! It's finished, now!” —Lyndon H. LaRouche, Jr., webcast, July 25, 2007 Unless the Homeowners and Bank Protection Act “is enacted as a first order of business of the 110th Congress in September [2007], many millions of Americans will be evicted from their homes.... The foreclosure tsunami is occurring, not as a result of a mere housing or mortgage crisis, but a disintegration of the entire global financial system.” —EIR Editorial, Aug. 31, 2007 “My view of the economy is that the fundamentals are strong.” —President George W. Bush, Dec. 20, 2007 EIR Online’s Subscribers Know What Is Really Going On.... Do You? To subscribe: www.larouchepub.com/eiw Call 1-800-278-3135 (toll-free) See back cover for subscription rates Founder and Contributing Editor: Lyndon H. LaRouche, Jr. Editorial Board: Lyndon H. LaRouche, Jr., Antony Papert, Gerald Rose, Dennis Small, Edward Spannaus, Nancy Spannaus, Jeffrey Steinberg, EI R William Wertz Editor: Nancy Spannaus Managing Editors: Bonnie James, Susan Welsh Science Editor: Marjorie Mazel Hecht Technology Editor: Marsha Freeman From the Managing Editor Book Editor: Katherine Notley Graphics Editor: Alan Yue Photo Editor: Stuart Lewis Circulation Manager: Stanley Ezrol “ INTELLIGENCE DIRECTORS f I were President, I’d end this thing right now!” Lyndon LaRouche Counterintelligence: Jeffrey Steinberg, Michele I Steinberg declared at his Aug.
    [Show full text]
  • Leading Articles & Commentary On
    Leading Articles & Commentary on the Financial Crisis Inquiry Commission Compiled by the Robert Crown Law Library April 2011 Source Link Excerpt Derivatives, As Accused by Buffett http://dealbook.nytimes.com/2011/03/14/derivative By Andrew Ross Sorkin s-as-accused-by-buffett/ New York Times March 14, 2011 The Official Verdict: America’s FCIC http://www.economist.com/node/18060818?story_i “The report of the Financial Crisis Inquiry Report is Big, Surprisingly Readable d=18060818 Commission (FCIC), America’s official and a Disappointment probe, gets things slightly the wrong way Economist round. It is breezily written, despite its Mar. 3, 2011 bulk. “The fault lies not in the stars, but in us” is its way of underlining that the crisis was avoidable.” In Case You Didn’t Get the http://www.washingtonpost.com/business/in-case- Memo...The Real Causes of the So- you-didnt-get-the-memo--- Called Financial Crisis /2011/02/19/ABMMfvH_story.html By Michael Lewis Washington Post February 20, 2011 1 A Political Divide Over the Inquiry of http://www.nytimes.com/2011/02/17/business/17cri “The government inquiry into the causes the Financial Crisis sis.html of the 2008 financial crisis was the focus By Sewell Chan of intense partisan bickering on New York Times Wednesday at a House hearing. February 17, 2011 Republicans called the final 545-page report a political exercise whose findings were mostly inevitable, while Democrats defended its main conclusion: that Wall Street risk-taking and regulatory negligence combined to produce an avoidable disaster.” Social Forces, More than Bad Actors, http://www.americanbanker.com/bankthink/- Led to Crisis 1032740-1.html By Gregory D.
    [Show full text]
  • The Glass–Steagall Act: Unraveling the Myth Norbert J
    BACKGROUNDER No. 3104 | APRIL 28, 2016 The Glass–Steagall Act: Unraveling the Myth Norbert J. Michel, PhD Abstract The 1933 Glass–Steagall Act is widely acclaimed for ending abusive and Key Points risky financial practices that led to the Great Depression, but it has a much better reputation than it deserves. The foundation of its supposed n The Glass–Steagall Act, the 1933 success is the Act’s vaunted separation of commercial and investment law that separated commercial banking. In truth, however, this separation was never absolute. The law and investment banking, gained a much better reputation than it implemented general prohibitions on certain activities, but included ever deserved. exceptions in every case. That is, the Act did not implement a complete n separation of commercial and investment banking. Furthermore, there There is virtually no evidence that allowing banks to engage in is virtually no evidence that the combination of commercial and invest- securities activities during the ment banking threatened bank safety in the pre-Glass–Steagall era. In pre-Glass–Steagall era worsened most cases the evidence supports the opposite conclusion, that the com- their financial condition relative to bination actually strengthened banks. In virtually all cases of supposed- those engaged in strictly commer- ly abusive and unsound practices during the pre-Glass–Steagall era, the cial bank activities. evidence cited either refers to a secondary source, is nonexistent, or is ir- n Allowing banks to engage in both relevant because Glass–Steagall did not address the practice specifically. types of financial activities actu- ally strengthened these commer- he 1933 Glass–Steagall Act is still admired by many who believe cial banks relative to their special- Tits separation of commercial and investment banking banned ized peers.
    [Show full text]
  • Financial Crisis Inquiry Commission
    FinancialCrisisInquiryCommission Background: ThisMayCongresspassedandPresidentObamasignedtheFraudEnforcementandRecovery Actof2009(FERA).Amongotherthings,theActestablishedaFinancialCrisisInquiry Commission(FCIC)andchargeditwith“examin[ing]thecauses,domesticandglobal,ofthe currentfinancialandeconomiccrisisintheUnitedStates.”ThelawinstructstheCommissionto investigatetheroleof22specifiedfactorsinprecipitatingthecrisisandlookintothecollapseof eachmajorfinancialfirmthatfailedorwouldhavefailedwithoutextraordinarygovernment assistancebetweenAugust2007andApril2009.TheCommissionreceivedbroadsubpoena power,anopen-endedmandatetogatherinformationfromgovernmentagenciesandprivate entitiesandtheauthoritytorefercasesforfederalorstateprosecution.(seeAttachmentA) TheCommissionconsistsofsixmembersappointedbyDemocraticcongressionalleadersand fourmembersappointedbytheirRepublicancounterparts.(AttachmentB)FormerCalifornia statetreasurerPhilAngelidesservesaschairmanoftheFCIC(AttachmentC);formerHouse WaysandMeansCommitteechairmanBillThomas(R-CA)wasnamedvicechairman.The CommissionwillholditsfirstpublicmeetingonSeptember17andisrequiredunderFERAto reportitsfindingsinDecember2010. TheCommission’sOpportunities: • Deepenandsustainthedemandforreformbyshapingpublicunderstandingofthedoctrines, policiesandpracticesthatledtothecollapse • Buildafoundationalrecordforsubsequenthistoricalaccountsoftheeventsunder investigation • Advancetheprocessofbringingindividualandinstitutionalwrongdoerstojustice • Indicatethescopeandkeycharacteristicsofreformsneededtorestorestability,accountability
    [Show full text]
  • New Deal & Economy
    New Deal & Economy New Deal & Economy • Banks & Credit • Federal Spending • Money • Taxation • Industry • Stock Market New Deal and the Banks Bank Crisis • 1931-32 • 2,000 banks failed • Assets - $1.7 billion • March 1933 – 38 states closed banks – NY Stock Exchange closed – Chicago Board of Trade closed Banking • Five day bank holiday • Emergency Banking Act (March ‘33) – Drafted by Hoover’s Treasury Dept – Assistance to private bankers • Federal Deposit Insurance Corp – June 1933 – Accepted by FDR Emergency Banking Act of 1933 • Authorized RFC to – Evaluate banks • Sound banks to reopen • Unsound banks closed – Buy bank stock • Authorized Federal Reserve bank notes Reconstruction Finance Corp. • Hoover: – Voluntary bankers’ pools • RFC: next step • Loans to insolvent banks • $2 billion thru 1932 Glass-Steagall Act of 1933 • Enacted - June 1933 • Separate commercial & investment banking • Established FDIC Federal Deposit Insurance Corp. • Opposed by FDR & Eastern banks • Supported by John Nance Garner & Jesse Jones • Based on Texas program • Original limit: $2,500 • Banks to sell preferred stock to RFC Banking Act of 1935 • Federal Reserve control of monetary policy • Greater govt control of Federal Reserve Jesse Jones • Born Tenn. 1874 • Lumber & banking • Houston Ship Canal QuickTime™ and a • Wilson Dem. decompressor are needed to see this picture. • Anti-Wall Street • Dem Fin. Dir. 24-28 RFC under FDR • “Government Bank” • Loans to – Railroads • Management oversight • Limits on salaries – NYC & Chicago – Bonneville Power Authority RFC Subsidiaries • Export-Import Bank • Federal National Mortgage Association • Electric Home and Farm Authority • Commodity Credit Corporation RFC Controversy • High interest rates – Not compete with private banks • Careful lending • Insufficient? • Private banks & corporations too timid? • More expansion needed? Banks & Credit • Rescued banking system • Expanded credit • Enough? New Deal and Federal Spending FDR & Federal Budget • Believed in balanced budgets • Willing to incur temporary deficit for relief • Unimpressed by J.M.
    [Show full text]
  • Vote Wide Inquiry on Short Selling
    DON’T BLAME THE SHORTS This page intentionally left blank DON’T BLAME THE SHORTS WHY SHORT SELLERS ARE ALWAYS BLAMED FOR MARKET CRASHES AND HOW HISTORY IS REPEATING ITSELF ROBERT SLOAN New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2010 by Robert Sloan. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-163687-2 MHID: 0-07-163687-0 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-163686-5, MHID: 0-07-163686-2. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occur- rence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at [email protected]. Articles reprinted from The New York Times, March 4, April 9, 11, and 21 © 1932 The New York Times. All rights reserved. Used by permission and protected by the Copyright Laws of the United States.
    [Show full text]
  • In Search of the Banking Regulator Amid U.S. Financial Reforms of the 1930S Dominique Lacoue-Labarthe
    In Search of the Banking Regulator amid U.S. Financial Reforms of the 1930s Dominique Lacoue-Labarthe To cite this version: Dominique Lacoue-Labarthe. In Search of the Banking Regulator amid U.S. Financial Reforms of the 1930s. 2014. hal-00937533v1 HAL Id: hal-00937533 https://hal.archives-ouvertes.fr/hal-00937533v1 Preprint submitted on 28 Jan 2014 (v1), last revised 16 Dec 2014 (v2) HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. The documents may come from émanant des établissements d’enseignement et de teaching and research institutions in France or recherche français ou étrangers, des laboratoires abroad, or from public or private research centers. publics ou privés. In Search of the Banking Regulator amid U.S. Financial Reforms of the 1930s Dominique Lacoue-Labarthe LAREFI Working Paper N° 201 4-01 2014 http: //lare -efi.u -bordeaux4.fr LAREFI Université de-Bordeaux Bâtiment Recherche Economie – 1er étage Avenue Léon Duguit – 33 608 Pessac i LAREFI – LABORATOIRE D ’ANALYSE ET DE RECHERCHE EN ECONOMIE ET FINANCES INTERNATIONALES AUTHORS Dominique Lacoue-Labarthe, LAREFI, Université Montesquieu Bordeaux IV NOTICES LAREFI Working Papers contain preliminary material and research results. They have been peer reviewed. They are circulated in order to stimulate discussion and critical comment; any opinions expressed are only those of the author(s). Copyright LAREFI. All rights reserved. Sections of this material may be reproduced for personal and not-for-profit use without the express written permission of but with acknowledgment to LAREFI.
    [Show full text]
  • Financial Regulatory Reform After the Crisis: an Assessment
    Financial regulatory reform after the crisis: an assessment By Darrell Duffie1 Executive Summary “You never want a serious crisis to go to waste.” – Rahm Emanuel, November 2008. This report offers a brief assessment of the post-crisis regulatory reform of the financial system: the most sweeping re-regulation of banking and financial markets since the US “New Deal” reforms2 conducted during the Great Depression. In the 21st century, finance permeates the global economy more deeply and intricately than ever before. The financial crisis of 2007-09 revealed powerful new variations of the notion of a “bank run”. As with the US reforms of the 1930s, governments have been energized by the heavy economic fallout of the crisis, especially given the revelations of socially excessive risk-taking and self-interested misbehavior. Commenters seethed over bailouts of wide swaths of the financial system, including banks, broker-dealers, a huge insurance firm, government- affiliated mortgage agencies, and money-market mutual funds. Staggering social costs were evident in lost output and employment. For example, within five quarters of the end of 2007, the real gross domestic product of the United States and the euro area each fell by about 4%, and were even further below their normal growth paths.3 The impact on Japan was even more severe. The euro area was then battered by a second wave of crisis arising from the exposure of its already weakened banking system to shaky sovereign debt and from worries over the future path of the eurozone. Legislatures and finance ministers around the world empowered financial regulators to rehabilitate on a grand scale.
    [Show full text]
  • Why a New 'Pecora Commission' Is Urgently Needed
    Click here for Full Issue of EIR Volume 36, Number 10, March 13, 2009 EIR Conference Report JACQUES CHEMINADE Why a New ‘Pecora Commission’ Is Urgently Needed The Schiller Institute, founded by Helga Zepp- the tax code, so that Morgan and his like would never LaRouche, held an international conference in Rüs- pay taxes. Al Capone would never have gone to prison, selsheim, Germany, Feb. 21-22, with the title, “Re- had he known “Andy” Mellon better. Pecora then building the World Economy after the Systemic Crisis.” showed that the total taxes paid by the entire House of Keynoted by Lyndon LaRouche and Helga Zepp- Morgan, not only J.P. Morgan, but the entire House of LaRouche, whose speeches we published last week, the Morgan, and its partners, in the previous five years, was conference was attended by about 350 people from 25 a single payment of $5,000 in 1931. nations. We continue here with presentations by some of Then came the list of J.P. Morgan’s and his associ- the other speakers. ates’ properties. They controlled most of the American Jacques Cheminade, president of France’s Solidar- economy, with their British friends. And then came J.P. ity and Progress party (Solidarité et Progrès) addressed Morgan’s preferred list, by which a bank’s influential the conference on Feb. 22. The panel was entitled, “Is friends, including former President Calvin Coolidge, Mankind Capable of Governing Himself?” participated in stock offerings at steeply discounted rates. Their full control of the American economy was Good morning. then exposed. The scene is in the United States hearings.
    [Show full text]
  • A History of Notable Senate Investigations: the Pecora Committee
    A History of Notable Senate Investigations prepared by the United States Senate Historical Office Citation: "Subcommittee on Senate Resolutions 84 and 239 (The Pecora Committee), Notable Senate Investigations, U.S. Senate Historical Office, Washington, D.C.” Subcommittee on Senate Resolutions 84 and 239 (The Pecora Committee) Resolution passed: March 2, 1932 Report issued: June 16, 1934 Chairman: Peter Norbeck (R-SD), 1932-1933; Duncan Fletcher (D-FL), 1933-1934 Vice Chairman: Duncan Fletcher, 1932-1933; Peter Norbeck, 1933-1934 Committee members: John Blaine (R-WI) Edward Costigan (D-CO) James Couzens (R-MI) Carter Glass (D-VA) John Townsend (R-DE) Origins Beginning in September 1929, the “Roaring Twenties” came to an agonizing halt as stock prices on Wall Street plunged. On October 24, tagged Black Thursday, a selling frenzy resulted in one-day losses that totaled $9 billion. The following Tuesday, October 29, the market traded 16 million shares—a record that would stand for 39 years. By November the market had shed some $26 billion in value. The market crash in 1929 led to the Great Depression, the longest economic downturn in American history. By 1932 nearly one-quarter of all Americans were unemployed. The financial crisis closed thousands of banks across the country. As depositors panicked, “bank runs” became a common sight on American main streets. To strengthen the financial sector and bolster sagging markets, President Herbert Hoover called on banks to enforce their internal regulations. Amid rumors that “bear raiders” were undermining his efforts, Hoover asked senators to investigate stock market practices. Process On March 2, 1932, senators passed Senate Resolution 84 authorizing the Committee on Banking and Currency to investigate “practices with respect to the buying and selling and the borrowing and lending” of stocks and securities.
    [Show full text]
  • The Rise and Permanence of Quasi-Legislative Independent Commissions
    The Rise and Permanence of Quasi-Legislative Independent Commissions By: Steven R. Ross,* Raphael A. Prober,** and Gabriel K. Gillett*** Disclaimer ABSTRACT This article explores Congress’s recent trend of creating quasi-legislative independent commissions to augment its own investigations, and determines what factors may enhance the chance that a commission will prove successful. Although Congress has never been the lone forum for investigations, since 2001 the legislature has been empanelling entities of outside experts to investigate the most significant economic and national security issues. This Article begins with a history of governmental investigations in America, highlighting activity by Congress, independent agencies, and presidential commissions. Next, it describes the modern political, communications, and scheduling strains on Congress that have created an opportunity for new types of investigations, and offers case studies of three quasi-legislative independent commissions – the Commission on Terrorist Attacks Upon the United States, the Commission on Wartime Contracting in Iraq and Afghanistan, and the Financial Crisis Inquiry Commission. Then, this Article scrutinizes these case studies and concludes that a quasi-legislative independent commission is most likely to be successful where it has a limited scope and investigative flexibility, features members seen as free from political pressures, uses discretion in compelling information, and ties its mission to larger legislative reform. Finally, this Article concludes by
    [Show full text]