Senator Dodd’s Financial Regulation Plan: 14 Fatal Flaws

The Heritage Foundation reviewed the Senate's financial reform bill that is currently being debated and came up with 14 fatal flaws. The following is a listing of their findings and the full article explains each flaw. It appears to be a road map for the takeover and control of the whole financial industry, enabling the seizure of private property, a slush fund and "line of credit" to reward allegiance to Democrats and a "lollipop" for the trial lawyer constituency.

Not listed is the Consumer Protection Agency being established on top of the SEC, FTC, and Fed Reserve. Where is the cost savings in this.

Excerpt:
1. Creates a protected class of “too big to fail” firms.
2. Provides for seizure of private property without meaningful judicial review.
3. Creates permanent bailout authority.
4. Establishes a $50 billion fund to pay for bailouts.
5. Opens a “line of credit” to the Treasury for additional government funding.
6. Authorizes regulators to guarantee the debt of solvent banks.
7. Limits financial choices of American consumers.
8. Undermines safety and soundness regulation.
9. Enriches trial lawyers by authorizing consumer regulators to ban arbitration agreements.
10. Subjects firms to hundreds of varying state and local rules.
11. Subjects non-financial firms to financial regulation.
12. Imposes one-size-fits-all reform in derivative markets.
13. Allows activist groups to use the corporate governance process for issues unrelated to the corporation or its shareholders.
14. Does nothing to address problems at Fannie Mae and Freddie Mac.