Summers: New Financial Rules Will Pass

President Barack Obama's top economic adviser said Sunday he believes Congress will pass new oversight rules for the financial industry.

Lawrence Summers also said putting even more Americans back to work is a White House "preoccupation."

Saying the employment trend has turned, Summers cautioned that "to get back to the surface we've got a long way to go."

"It is the president's preoccupation to put people back to work," he said.

He also criticized Republicans who are holding up an extension of unemployment benefits, saying the economy still needs emergency action.

On the overhaul of the financial regulatory system, which Obama has said he wants to see passed in the Senate within two weeks, Summers said, "I expect that reform is going to pass."

He said he did not see how the measure could fail "given what we've been through" in the deepest recession in more than 50 years.

Summers predicted the economy will continue creating jobs but slowly and that the unemployment rate will decline slowly because more people will start trying to find work as the economy improves.

He spoke on ABC television's "This Week" and CNN's "State of the Union."

[stormerF2]

Why do the Democrats want to make all the un-employed dependent on the government? Keep extending benefits and that is what happens. Time for them to apply for welfare and food stamps.,.. Summers is the White House dog washer who wants to keep his cushy job. Hiring 48,000 government TEMPORARY Census workers is not job growth, and will not boost the economy.Hiring 16,000 more IRS agents will not improve your health care either. Wish Democrats could understand what they read.

[pasmalltown]

Why does the Federal Government exist?

Because big business needs someone to blame for their mistakes....
--------------------------------------------------
I realize this to be oversimplification of fact - however, there's a lot of truth told in a joke.

[stormerF2]

The Government needs to get the hell out of business,and let the free market take care of its self. Government can not run The Post Office,AM- Trak, Medicare/Medicaid,or Social security. and the Bedwetters want them to run our Health care industry? What a joke.

[pubsrtoast]

by hateisafourletterword April 4, 2010 2:57 PM EDT
It was done because Barney Frank and Chris Dodd
_________________________________________________________

Hey Liar, Here is something Rush Limbaugh probably omitted when he programmed you...

Governor Randall S. Kroszner
At the Confronting Concentrated Poverty Policy Forum, Board of Governors of the Federal Reserve System, Washington, D.C.
December 3, 2008

Evidence on CRA and the Subprime Crisis
Over the years, the Federal Reserve has prepared two reports for the Congress that provide information on the performance of lending to lower-income borrowers or neighborhoods--populations that are the focus of the CRA.3 These studies found that lending to lower-income individuals and communities has been nearly as profitable and performed similarly to other types of lending done by CRA-covered institutions. Thus, the long-term evidence shows that the CRA has not pushed banks into extending loans that perform out of line with their traditional businesses. Rather, the law has encouraged banks to be aware of lending opportunities in all segments of their local communities as well as to learn how to undertake such lending in a safe and sound manner.

Recently, Federal Reserve staff has undertaken more specific analysis focusing on the potential relationship between the CRA and the current subprime crisis. This analysis was performed for the purpose of assessing claims that the CRA was a principal cause of the current mortgage market difficulties. For this analysis, the staff examined lending activity covering the period that corresponds to the height of the subprime boom.4

The research focused on two basic questions. First, we asked what share of originations for subprime loans is related to the CRA. The potential role of the CRA in the subprime crisis could either be large or small, depending on the answer to this question. We found that the loans that are the focus of the CRA represent a very small portion of the subprime lending market, casting considerable doubt on the potential contribution that the law could have made to the subprime mortgage crisis.

Second, we asked how CRA-related subprime loans performed relative to other loans. Once again, the potential role of the CRA could be large or small, depending on the answer to this question. We found that delinquency rates were high in all neighborhood income groups, and that CRA-related subprime loans performed in a comparable manner to other subprime loans; as such, differences in performance between CRA-related subprime lending and other subprime lending cannot lie at the root of recent market turmoil.

In analyzing the available data, we focused on two distinct metrics: loan origination activity and loan performance. With respect to the first question concerning loan originations, we wanted to know which types of lending institutions made higher-priced loans, to whom those loans were made, and in what types of neighborhoods the loans were extended.5 This analysis allowed us to determine what fraction of subprime lending could be related to the CRA.

Our analysis of the loan data found that about 60 percent of higher-priced loan originations went to middle- or higher-income borrowers or neighborhoods. Such borrowers are not the populations targeted by the CRA. In addition, more than 20 percent of the higher-priced loans were extended to lower-income borrowers or borrowers in lower-income areas by independent nonbank institutions--that is, institutions not covered by the CRA.6

Putting together these facts provides a striking result: Only 6 percent of all the higher-priced loans were extended by CRA-covered lenders to lower-income borrowers or neighborhoods in their CRA assessment areas, the local geographies that are the primary focus for CRA evaluation purposes. This result undermines the assertion by critics of the potential for a substantial role for the CRA in the subprime crisis. In other words, the very small share of all higher-priced loan originations that can reasonably be attributed to the CRA makes it hard to imagine how this law could have contributed in any meaningful way to the current subprime crisis.

______________________________________________________________

Did you get that Liar? Here, let me repeat.....


OUR ANALYSIS OF THE LOAN DATA FOUND THAT ABOUT 60 PERCENT OF HIGHER-PRICED LOAN ORIGINATIONS WENT TO MIDDLE- OR HIGHER-INCOME BORROWERS OR NEIGHBORHOODS. SUCH BORROWERS ARE NOT THE POPULATIONS TARGETED BY THE CRA.

Signed:
Anxiously awaiting your next lie.

[stormerF2]

You left out the part about Chris Dodd adding an Amendment to the FDIC act in 1991 that made investment and non-commerical banks(AIG) fall under the same protection as Other banks and savings institutions,which contributed to the Mortgage crisis.

[KeithDrippingSprings]

You people that are afraid of the government quit worrying, They didn't do anything about Health Care. You know how I know? The insurance companies stocks went up after the bill passed. They aren't going to do anything about the Financial sector. You know how I know? because they already broke several laws bailing them out the first time and they aren't going to stop the gravy train.

Scoundrels and Thieves are running eh government and until you quit fighting each other and attack the real enemy , incumbent Congressman then you will continue to have the sold out bunch of crooks you have now.

[RobAla]

Wait until the full impact of the health care bill hits the economy and the job situation.

The middle class will see:
1) Their state and federal taxes go up ? including Medicare taxes
2) Their private insurance premiums go up

Seniors will see:
1) $500 billion less in Medicare
2) Fewer doctors willing to accept Medicare patients

States will see:
1) Federal government expansion of Medicaid ? adding financial burden on the states
2) This action forces the states to greatly raise taxes on citizens of each state

Businesses will see:
1) Federal mandates which force them to provide insurance ? adding financial burdens
2) This action will cause many to have to lay off more workers

The majority of Americans:
1) Asked for reform on a few specific areas ? but will see health care turned upside down
2) Have been ignored, after stating in polls that they do not want this bill


Americans were asking Washington to help bring down the cost of health care, but instead Washington took this as an opportunity to fatten itself at our expense. This bill will cause premiums to go up dramatically, and the higher taxes will result in our standard of living going down. Washington turned a deaf ear to the majority of Americans, and we will have an opportunity to set things straight come November.

[nearl451]

Yeah, we know....THATSTOCK MARKET IS GONNA CRASH RIGHTAFTEROBAMA SIGNS!~!!!!!! AUUUUGH!!!

Your inane pisant predections are getting just a little tiresome.

[pubsrtoast]

I love the posters that support discrimination by doctors based on political affiliation. They were the same ones mouthing fabrications predicting the Democrats would discriminate against Republicans; are now proclaiming support for any doctor that chooses NOT TO TREAT Democrats; the hypocrites and bigots will do anything to perpetuate a system they believe treats them better than others.

_________________________________________________________________

Very astute observation......

[Fixedratestupid]

The only thing I see that needs to be done is get a muzzle (tariff) on China and the greedy American industry's in China that are sucking the life out of American family's!

[sjc_1]

Two years after the meltdown and nothing has been done. I think people want to make sure this does not happen again. Lowering loan standards to increase home ownership is not a good idea, but it produced commissions and points fees for the banks and they could just get rid of the loans anyway. That was reckless and irresponsible, but it was done because deregulation allowed them to do it.

[hateisafourletterword]

It was done because Barney Frank and Chris Dodd (two people on financial oversight committees in Congress) demanded that financial institutions make more loans to the people now defaulting.

Stop blaming the banks for everything. Senators and Congresspersons forced this on them. Then civil rights groups threatened lawsuits for discrimination.

Was there greed on the part of banks - sure. But this was started by the stupid people we elected!

[sjc_1]

You keep telling those lies, maybe some day someone might believe them. Phil Gramm put in a resolution to allow CDO/CDS business and made sure NO one had any oversight.

[hateisafourletterword]

Great. 10:1 the rules will not apply to George Soros or Goldman Sachs since these democrats would never do anything to enrich themselves at the expense of others, right?

[nearl451]

Dumb is also a four letter word,as you provedailyin your ill informed posts.

Not woth reading really.

[stormerF2]

nearl451,...Where is your proof? The oversight committee rebuffed McCain and later Bush when they questioned them about the validity of the sub-prime loans. Look for yourself,stop whinning and do away with your ignorance of the truth.