Practice Management

The Senate's over-hyped overhaul.

By Dan Hull

And is 'shambolic' a real word? See The Economist's take on last week's Senate approval of the financial reform bill in "Almost There". Three excerpts:

The most important component aimed at preventing another crisis is ?resolution authority?, under which any big financial company, not just a bank, can be seized and wound down in an orderly way. Lack of such authority led to the shambolic failure of Lehman Brothers and the controversial bail-out of AIG.

The new consumer-protection bureau should help to close the gap between well-regulated banks and poorly regulated mortgage brokers and finance companies, which led the race to the bottom in loan-underwriting standards. But many firms, most significantly small banks, are exempted from its authority.

...Some of banks? biggest worries remain unresolved. They are resigned to accept some form of the ?Volcker rule?, which would restrict their proprietary trading and investment in hedge funds and private equity.

Full post as published by What About Clients? on May 24, 2010 (boomark / email).