Tuesday, November 8, 2011

Dodd - Frank

            There are a lot of bills, laws and acts that are being talked about in the political field. In the midst of a presidential campaign season there may be things thrown around that we don’t know about. So I’m starting a series to clear up any confusion on some of these things. I’ll provide general information on each item, discuss the positive and the negative and then state where each candidate stands on the issue.

Today I’ll be discussing Dodd – Frank:

Key Players

Barack Obama

2008 Financial Contribution Numbers

Goldman Sachs – $1.013 Million

JP Morgan Chase – $808,000

Citigroup - $736,000

Morgan Stanley - $512,000

Barney Frank

2008 Financial Contribution Numbers

Bank of America - $12,000

JPMorgan Chase & Co. – $11,000

Morgan Stanley - $11,000

Ernst & Young - $10,000

PriceWaterhouse Coopers - $10,000

Goldman Sachs - $10,000

Independent Community Bankers of America - $10,000

Chris Dodd

2008 Financial Contribution Numbers

Royal Bank of Scotland - $250,000

Citigroup Inc. - $184,000

Bear Stearns - $111,000

Morgan Stanley - $105,000

Goldman Sachs - $90,000

Merrill Lynch - $82,000

Lehman Brothers - $74,400

JPMorgan Chase & Co. - $71,800

Richard Shelby

2008 Financial Contribution Numbers

Citigroup Inc. - $120,000

PriceWaterhouse Coopers - $98,000

JPMorgan Chase & Co. – $86,000

Ernst & Young – $63,000

Thanks to three decades of deregulation (1980 – 2000) (Jimmy Carter’s Depository Institutions Deregulation and Monetary Control Act of 1980 and the Gramm – Leach – Bliley Act) the banks were allowed to speculate, invest in hedge funds and write up predatory mortgages. These things lead to the market crash of ’07 – ’08 and caused Chris Dodd, Barney Frank and Barack Obama to pass reactionary regulation because the 1930’s reactionary regulation had been legislatively dwindled down to nothing. This left the market to gluttonously implode from playing with money that wasn’t there. George W. Bush tried to correct the problem with a bank bailout (TARP) and the banks sat on the money (Whether W. knew the banks were going to sit on the money is a – whole – ‘nother debate/conversation). Needless to say, W. didn’t try to regulate the banks and, despite what I think is excessive additions to an already excessive bureaucracy, Barack Obama did.

Here are some examples of the bureaucracy I mentioned:

                        Financial Stability Oversight Council: This council has broad authorities to identify and monitor excessive risks to the U.S. financial system arising from the distress or failure of large interconnected bank holding companies or non – banking financial companies.

                        Office of Financial Research: Was created to improve the quality of financial data available to policy makers and facilitate more robust and sophisticated analysis of the financial system.

                        Bureau of Consumer Financial Protection: Regulates consumer financial products and services in compliance with federal law.

            Examples of regulation:

              The Volcker Rule, which restricts United States’ banks from making certain kinds of speculative investments that do not benefit their customers.

                        A ban on proprietary trading by commercial banks, whereby deposits are used to trade on the bank’s personal accounts.

                        “Taxpayers shall bear no losses from liquidating any financial company under this title and any losses shall be the responsibility of the financial sector recovered through assessments.” (H.R. 4173 Section. 214)

                        Title VII of Dodd – Frank, the Wall Street Transparency and Accountability Act of 2010 repeals exemption from regulation for security – based swaps under the Gramm – Leach – Bliley Act.

                        Title XIII amends the Emergency Economic Stabilization Act of 2008 to limit the TARP, by reducing the funds available by $225 billion (from $700 billion to $475 billion) and further mandated that unused funds can not be used for any New programs.

So, regardless of how skeptical I am, was and want to be, it feels to me that Dodd – Frank was good in the way of regulation, and that regulation is necessary, as is proved by the negative effects of the slow repeal and disassembling of Glass – Steagall. The counter arguments are that it will make it more expensive to start up a small business (isn’t that the republican argument against every bill?) and that it didn’t repeal Fannie Mae and Freddie Mac and replace them with private mortgage lending.

So, what do the 2012 Presidential Candidates have to say on this particular issue?

(In the spirit of OWS and the ideology of ‘Getting money out of politics’ I’ve decided to include with each candidates’ opinion of Dodd – Frank, their top and most interesting financial contributions for the current presidential race.)

Michele Bachmann

Carbon Concepts – $15,000

College Loan Corp. - $12,000

Hubbard Broadcasting - $10,000

Empire Office Inc. - $10,000

Fager Inc. - $10,000

! Citizens United - $5,000

! Koch Industries - $5,000

                                                (Michele Bachmann has 18.9% incomplete or non disclosure.*)

“I’m pleased to offer a full repeal of the job-killing Dodd-Frank financial regulatory bill,” Bachmann said. “Dodd-Frank grossly expanded the federal government beyond its jurisdictional boundaries. It gave Washington bureaucrats the power to interpret and enforce the legislation with little oversight.” – Newsmax.com

Herman Cain –

                                    Wausau Homes - $9,000

                                    ! Wells Fargo - $8,000

                                    Houston Texans - $7,000

                                    Cold Spring Granite - $6,000

                                    Cinco Natural Gas - $5,000

                                    (Herman Cain has a 50.6% incomplete or non disclosure.)

"I would get the government off the backs of the banks, that's one of the reasons we have so many problems," Cain said. "Many of the banks can't do some of the things they want to do to help folks. A lot of the problems have to do with regulations or the threat of regulations coming out of Washington D.C." – Huffington Post

Newt Gingrich –


                                    Rock – Tenn Co. - $25,000

                                    Poet LLC - $17,000

                                    First Fiscal Fund - $15,000

                                    State Mutual Insurance - $10,000

                                    American Fruits and Flavors - $10,000

                                    ! Wells Fargo - $5,000

                                    ! Citizens United - $5,000

                                    (Newt Gingrich has 10.3% incomplete or non disclosure.)

            “And if you want to put people in jail, I will second what Michelle said: let's look at Barney Frank and Chris Dodd and let’s look at the politicians who profited from the environment and the politicians who put this country in trouble.” – Huffington Post

            Jon Huntsman –


                                                Fertitta Entertainment - $32,000

                                                UFC - $26,000

                                                Station Casinos - $26,000

                                                Crow Holdings - $20,000

                                                Fresenius Medical Care - $17,000

                                                Huntsman Corp. - $14,000

                                                ! Morgan Stanley - $9,000

                                                ! JPMorgan Chase and Co. - $7,000

                                                ! Goldman Sachs - $6,000

                                                Microsoft Corp. - $6,000

                                                (Jon Huntsman has 21.8% incomplete or non disclosure.)

            The jobs plan Huntsman proposed would repeal Dodd-Frank, and he has said the law is ‘making it impossible to get our life blood to small businesses.’” – ThinkProgress

            Gary Johnson –


                                                Tower Energy Group - $10,000

                                                Welcom Products - $5,000

                                                Corriente Advisors - $5,000

                                                Ryan LLC - $5,000

                                                Google Inc. - $2,000

                                                (Gary Johnson has 30.7% incomplete or non disclosure.)

"Repeal [Dodd-Frank], for starters, understanding that this is just another example of government passing laws with unintended consequences."

"This is government picking winners and losers. In this case, the big banks are bigger, the whole notion of 'too big to fail' lives on, and that was just codified in this legislation.” – Benzinga Radio

            Fred Karger –


                                                RMI Investment - $2,000

                                                Dahn Corp. - $2,000

                                                Murchison and Cumming - $2,000

                                                ABC Advocacy Group - $1,000

                                                Corcoran Group - $1,000

                                                (Fred Karger has 6.8% incomplete or non disclosure.)

            I was not able to find anything in the way of Fred Karger being for or against Glass – Steagall. I will add that he seems to support Occupy Wall Street and has some interesting ideas, such as: Aside from easing the job search for unemployed Americans with a centralized website, Karger would also like to see tax credits given to those who need to relocate to find a job. – The Daily Caller

            Barack Obama –

                                                Microsoft Corp. - $170,000

                                                Comcast – 116,000

                                                Harvard – 94,000

                                                Google Inc. – $90,000

                                                University of California - $87,000

                                                Time Warner - $60,000

                                                Bank of America - $46,000

                                                (Barack Obama has 16.3% incomplete or non disclosure.)

            … He signed Dodd – Frank.

            Ron Paul –


                                                US Air Force - $23,000

                                                US Army - $23,000

                                                US Navy – $16,000

                                                Mason Capital Management - $14,000

                                                Microsoft Corp. - $13,000

                                                Boeing Co. - $10,000

                                                Google Inc. - $10,000

                                                Lockheed Martin – $9,000

                                                IBM Corp. - $8,000

                                                AT&T Inc. – $7,000

                                                Intel Corp  - $6,000

                                                Federal Express Corp - $6,000

                                                (Ron Paul has 16.3% incomplete or non disclosure.)

            U.S. Representative Ron Paul (R-TX) called Dodd-Frank a “disaster.” - RegBlog

            Rick Perry –

                                                Ryan LLC - $197,000

                                                Murray Energy – $866,000    

                                                USAA - $51,000

                                                Contran Corp - $50,000

                                                Ernst & Young - $45,000

                                                JPMorgan Chase & Co. - $27,000

                                                ! Morgan Stanley – $20,000

                                    (Rick Perry has 24.4% incomplete or non disclosure.)

With Jon Huntsman’s recent economic speech, virtually all the Republican candidates for President—Romney, Bachmann, Huntsman, and Gingrich—have said they’re for repeal of the Dodd-Frank Act. (Rick Perry hasn’t said that specifically, but, in a book published in 2010, he suggested that the act was unconstitutional). The American

Buddy Roemer –


Candidate Buddy Roemer says Wall Street actually wrote the Dodd-Frank bill. He's also called for reinstating Glass-Steagall.” – Conway Daily Sun

Mitt Romney –

                                    ! Goldman Sachs – $354,000

                                    Credit Suisse Group - $195,000

                                    ! Morgan Stanley - $185,000

                                    HIG Capital - $176,000

                                    Barclays - $155,000

                                    ! Bank of America - $121,000

                                    PriceWaterHouse Coopers – $118,000

                                    ! JPMorgan Chase & Co – 109,000

                                    Bain Capital - $69,000

                                    ! Wells Fargo – $63,000

                                    ! Citigroup – 56,000

                                    (Mitt Romney has 11.6% incomplete or non disclosure.)

“‘The extent of regulation in the banking industry has become extraordinarily burdensome following Dodd-Frank,’ Romney told a roundtable of 18 businessmen at The Common Man Restaurant.” – Boston.com

Rick Santorum –

                                    Bluecross/Blueshield of South Carolina - $15,000

                                    Universal Health Services - $14,000

                                    Kimber Manufacturing - $12,000

                                    El Dorado Holdings - $10,000

                                    Achristavest - $10,000

                                    (Rick Santorum had 23.2% incomplete or non disclosure.)

“Santorum has called for reducing taxes, repealing Dodd-Frank and Sarbanes-Oxley, and rolling back regulations at the EPA, FDA, and NLRB.” – Reason.com

* Thanks to opensecret.org for all the numbers used on this piece. The money figures were rounded down.

For Further Reading:


The 5 Best and 5 Worst Regulations in Dodd-Frank


July 19, 2011


Is Dodd-Frank Overdue or Overkill? 2 Dueling Views


August 3, 2011, 4:20 pm


Dodd – Frank

By Wikipedia

            There it is - a rather long and interesting piece on Dodd – Frank with an interesting look at money in politics thrown in. I hope this has been both informing and entertaining. 

- Alexander Fisher


"Those that dream by night, in the dusty recesses of their mind, wake in the day to find that all was vanity, but the dreamers of the day, are dangerous men, for they may act out their dreams and make them real."

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