Saturday, January 10, 2009

REFORM OUR FINANCIAL SYSTEM #2











How about the logic behind the SEC (Securities & Exchange Commission) that is supposed to police Wall Street.

Many of the big shots at the SEC leave early for million dollar jobs on Wall Street. Does that sound a little stupid to you?

Let me say the stupidity aloud; will a person that is counting on getting a big job on Wall Street do anything while at the SEC to jeopardize that possibility? There you go.

My suggestion, pay the individual at the SEC a goodly salary and forbid that individual from holding a job after the SEC job for at least 15 years and enforce that rule with some real punishment like jail time and huge fine.

I know I am not a finance guy but I do know that the term “bank” has been diluted to the point that anyone can call themselves a bank without assuming all the stringent regulations associated with real banks.

I think we need to clean this up and re-introduce strict “capital” requirements on banks in “real” dollars and not the unrealistically rated and valued securities that the banks hold.

Yes, I want to go back to the old days where banks were serious institutions that conducted business following strict rules. Banking should be different from investing and investment banks should not be called banks but investment houses or institutions.

Your money should not be at risk in a well regulated bank. Your money should be at a realistically rated risk position in investment accounts. I was raised in a very fiscally conservative household and I raised my children that way (well maybe not as conservative as my parents were) but still fiscally RESPONSIBLE.

Lets get back to those days and regain control…

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