Posted by Congressman John Campbell at 12:00 am on Jul 20, 2010 Comments Off on FinReg
It now appears that FinReg is the generally accepted
shorthand name for the financial regulatory reform bill that the
president will sign into law this week. As most readers of this
missive know, I opposed this bill because it will not solve the
problems that led to the 2008 financial crisis and it will make
consumer and small business credit more difficult to get and more
expensive. Therefore, it will be another addition to the list of
bills (health care, cap and trade, stimulus, etc.) which will
increase taxes, lower growth, and destroy even more private sector
jobs in this country. The bill has 3 basic elements which I will
describe briefly below. Also, I will tell you what I think the
economic and societal effects will be. When all of this becomes
apparent during the next 12 months, remember that this is the piece
of legislation driving it.
Derivatives regulation: I support much of this
effort, unfortunately however, the bill fails to create sufficient
exceptions for end users of derivatives (such as farmers), who do
not use derivatives as an investment, but rather as a “hedge” to
insure against market volatility in an
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