Senate Passes Broader Rules for Overseeing Wall Street

President Obama and Congressional leaders will now begin to fashion the final bill to expand government oversight of the banking industry and financial markets.

The conference committee will come back with a hybrid bill for both houses to pass.

Bill Passed in Senate Broadly Expands Oversight of Wall St.

NEXT THING IN LINE SHOULD BE THE FIX FOR THE BANKRUPTCY LAW. THE CURRENT LAW PASSEED IN 2005, WAS PUSHED BY THE BANKS, AND THEY GOT THE THEIR WAY. IT SPECIFICALLY SAYS THE PROVISION WOULD ALLOW BANKRUPTCY JUDGES TO MODIFY--(OR CRAM DOWN) MORTAGE PAYMENTS "FOR HOME OWNERS WHO OWE MORE ON THEIR HOME THAN IT IS WORTH". CURRENTLY, BANKRUPTCY JUDGES ARE NOT ABLE TO MODIFY LOANS ON A PRIMARY RESIDENCE (LIVING IN THE HOUSE) BUT CAN MODIFY LOANS ON A SECOND HOME. ALSO BUSINESS, APARTMENT OWNERS CAN USE THE CREM DOWN PROVISIONS. THIS REPEAL WAS IN THE STIMULAS BILL, BUT WAS STRIPPED OUT TO GET THAT BILL PASSED BY THE REPUBLICIANS AND BIG BANKS. see http:wonkroom.thinkprogress.org/2009/01/23/mortage-stimulus/ Jan 23, 2009. Also Mark Jandi, Moody's.com, Judge Samuel L. Bufford, US Bankruptcy Court in L A, Cal. has lots of press on this. The Democrates have tried to get a bill on the floor as late as March 2010, but could not get it out on the floor. This is more indication of the intent of the lenders to move the risk to the home owner living in their home in 2005. This would force the banks to modify the loans at the current value and at lower interest availiable today. This would force the people that got us in this mes to refinance. A $150,00- loan at 9% = $1,206.93 per mo., at todays rate 5% it would be 805.23. In the old pre 2005 bankruptcy law, you could lower to this. Not being able ot modify values or interest is a quarantee, that most modifications will fail. That is why the lenders are not even trying.

That's right. Debt is not a friend. All the owners must sign off on a modification.

Modifications will not happen.

The recommended comments are about evenly split. Krugman thinks this is as good a bill as we are likely to get soon. It is a far better bill than it could have been.