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Dirty Players Exposed: Fed, Hedge Funds, Cantor

The Dodd-Frank bill has the predicted response from the dirty players in the financial system. The main dirty player is the Fed. has an article devoted to a really dirty guy, Fed Governor Daniel Tarullo.

This guy makes the incredible statements that:

1. All firms pose systemical risk under stress. and

2. the pool, therefore, of hedge funds and mutual funds that should be on the systemic list should be a short one!

From the same website, we have the Financial Stability Oversight Council (FSOC) seeking rules that would prevent freedom of information regarding Dodd-Frank. I guess if you want another housing bubble you need to do it in secret. That way people won't be prosecuted for starting another bubble. Investors beware! Oh, that's right, investors want all loans guaranteed by the government, with or without Fannie and Freddie. Don't worry investors, the government will have your back at taxpayer expense. Wells Fargo, the IMF and everyone important want you covered!

That could explain the fight by the Tea Party to carve room in the budget for these future bailouts. A list of FSOC members who want to keep Dodd-Frank negotiations secret is listed below.

Then, we have Eric Cantor being funded massively by hedge funds, and no doubt the lobbying effort is a massive effort to stay off the systemic risk list. We know hedge funds are funding both parties, but the push to make these Tea Party candidates toe the line is particularly odious considering that the Tea Party thinks it immoral not to pay back your underwater housing loan. And yet they are funded to victory in the 2010 election by the very hedge funds that caused your house to rise in price and then crash! Dirty politicians want another housing bubble, and Cantor is the main player!

Anyway, hedge funds that are on the systemic list won't be able to fund the SIV's that allow banks to get around capital requirements. Skirting capital requirements gives the banks a way to fund shadow bank mortgage companies that are involved in easy money housing bubbles. Therefore, the shorter the list, the more hedge funds available to blow another Federal Reserve housing bubble! The more dirty hedge funds, the bigger the easy money bubble can become!

Oh, the speculation! So much for the lie that speculation doesn't hurt mainstreet. Any banker still wanting to make that argument?

We view this website, Fierce Finance, with author Jim Kim, saying the delay in Dodd-Frank is a means to help regulators get too big to fail right. It looks to me that the delay and effort to stay off the list is a means to get too big to fail entirely wrong. For the Fierce Finance author, the delay in implementation of Dodd-Frank is a victory for the hedge funds. But I fail to see how that means it is a victory for regulators! Oh, maybe the regulators, the dirty Fed being chief, want hedge funds off the list. A short list helps the regulators not regulate. I get it.

Will Rogers was right. Bankers don't know much about their business. But they know all about speculation and how to make it work.


Anyway, from Wikipedia, here is the list of FSOC members who don't want too much information going out. This is a list of men and women that are most likely above the law with regard to housing bubbles:

  1. Secretary of the Treasury (chairs the Council)
  2. Chairman of the Federal Reserve
  3. Comptroller of the Currency
  4. Director of the Bureau of Consumer Financial Protection
  5. Chairperson of the U.S. Securities and Exchange Commission
  6. Chairperson of the Federal Deposit Insurance Corporation
  7. Chairperson of the Commodity Futures Trading Commission
  8. Director of the Federal Housing Finance Agency
  9. the Chairman of the National Credit Union Administration Board