What Will ELECTION RESULTS mean for Wall Street?

 The election results have obviously given the Republicans a lot more clout. According to the following article, Republicans will have oversight of the agencies whose task is to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act. Also, the House takeover and the GOP's strengthened position in the Senate will also give the party greater influence over the direction and independence of the new Consumer Financial Protection Bureau. Changes are coming!
     . . . June

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Election results: What they mean for Wall Street:
Tradeonlytoday.comPosted on November 03, 2010

The shift of the U.S. House of Representatives to Republican control is expected to give the GOP and Wall Street a fresh opportunity to reshape pending financial regulations.


Republicans will have oversight of the agencies whose task is to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act, The New York Times reports. The Securities and Exchange Commission and the Commodity Futures Trading Commission will be working on more than 240 rules that govern items such as bank capital standards.

The House takeover and the GOP's strengthened position in the Senate will also give the party greater influence over the direction and independence of the new Consumer Financial Protection Bureau.

Republicans say they will use the House Financial Services Committee to ensure that regulators such as the CFTC and the consumer protection bureau do not write rules for the banking industry that lawmakers consider overly restrictive, Bloomberg News reports.

Slower rule making or additional pressure on regulators could benefit companies such as Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., which lobbied against parts of the Dodd-Frank law and predicted it would hurt their financial results.

Democrats still control the Senate, and Republicans are unlikely to be able to fundamentally reshape or repeal the Dodd-Frank law or unwind the government's role in housing finance. But the Republican approach will mark a shift from Democratic policies.

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Will Elizabeth Warren Be Wall Street Consumer Watchdog?

 Will Elizabeth Warren fill the post for Wall Street Consumer Watchdog? According to the following article,Warren has served as chairwoman of the Congressional Oversight Panel, a watchdog group for the financial bailout program. She has been championed by many left-wing Democrats, who see her outspokenness, intellect and sarcastic sense of humor a perfect fit to police Wall Street's shenanigans. Sounds good to me!
   . . . June


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White House eyes Elizabeth Warren for Wall Street consumer watchdog post

By Kenneth R. Bazinet DAILY NEWS WASHINGTON BUREAUTuesday, September 14th 2010, 1:40 PM

WASHINGTON - The White House is considering its options for naming frontrunner Elizabeth Warren as the government's Wall Street consumer watchdog, sources told the Daily News Tuesday.

Warren has served as chairwoman of the Congressional Oversight Panel, a watchdog group for the financial bailout program. She has been championed by many left-wing Democrats, who see her outspokenness, intellect and sarcastic sense of humor a perfect fit to police Wall Street's shenanigans.

President Obama may still pick someone else to fill the post created by the new financial reform law. But he also is weighing whether to appoint Warren as temporary head of the Treasury Department's Consumer Financial Protection Bureau or avoid Senate confirmation by giving her a recess appointment, according to an administration official.
"If we do it as a recess appointment...she's out a short time later. There may be a way to get her in there now," said an administration official.
Warren, a Harvard law professor who specializes in finance and bankruptcy law and has long backed the new watchdog agency, has some strong boosters, including Obama, who has known her since his days at Harvard Law School. There are also senior aides who like the idea.
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Financial Reform and Transparency in Hedge Fund Management

According to the article below, the Dodd-Frank Act seeks to restore trust and establish a sound regulatory framework for the financial services marketplace. It contains numerous components aimed at more transparency through the disclosure of relevant information and awareness of risk. Lets hope that it works that way.

   . . . June


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Press Release - Financial Reform Legislation and Transparency in Hedge Fund Management:
"September 11, 2010 /24-7PressRelease

With the economy sputtering, seeking to recover from the Great Recession that followed the financial meltdown of 2008, Congress worked for more than a year to develop comprehensive financial reform legislation. The result was the Dodd-Frank Wall Street Reform and Consumer Protection Act, which President Obama signed on July 21.

Dodd-Frank contains many features intended to require more transparency in financial transactions, so that elaborately packaged products do not create and disguise excessive risk that can harm unwary investors and consumers.

The concerns that led to the legislation reared their head during the 2008 crisis, but they had been building for years. Credit had been too easy to obtain for too many people. Subprime real estate loans, even for people with problematic credit histories or insufficient income, were the most obvious and egregious example. But the problems went beyond subprime loans. Investment banks and financial services firms package such loans and other forms of debt into numerous complex financial instruments that often were devoid of any transparency. And these same financial institutions took on more and more risk through credit default swaps and the use or ever-increasing leverage that placed the future existence of the institutions at great risk. Such risk is what led to the demise of investment banks like Lehman Brothers.

These financial problems infected the economy. Main Street, Wall Street and Washington spent much of 2008 and 2009 performing on-the-fly improvisation, trying to get credit flowing again in the midst of loan defaults, bankruptcies (including Lehman Brothers), rising foreclosures, high unemployment, and a huge government bailout of "too-big-to-fail" financial firms like AIG.

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