Will the Latest Regulatory Bill Prevent Another Crisis?

Recently the U.S. Senate approved a new financial regulatory bill. Experts claim that this bill consists of various loopholes that lessen its true impact on our financial situation. Many of the provisions stated therein rely upon the same regulatory agencies that have failed us in the past. The reasoning behind these loopholes and lack of foreseen effectiveness can be solely put on the banking and other industry bigwigs whom sent lobbyist to fight against the aspects of this bill that would lessen their ability to profit.
The influence that the financial industry has over Washington D.C. is astounding. They have surpassed every other lobbying industry in the past 12 years Uco Bank Personal Loan Interest Rate 2019 by spending a massive $3.8 billion. In just the past 20 years they have also donated $2.3 billion to candidates in hopes of getting what they want.
This financial regulatory bill, that has yet to be to be passed by the full Congress, addresses some of the issues that may have aided in our most recent financial crisis.
The first point to examine is how derivatives are to be treated. Before, they could be considered a mere side bet on how various investments such as mortgages, futures, and stock options, were to perform. With the new bill, derivatives will be bought and sold in trade exchanges so that regulatory agencies can more easily keep these types of investments on the up and up.
Next is the issue of the regulation of the banking industry. Before, there were many regulators that were not able to recognize the high risk that banks were taking on. With the new bill the Office of Thrift Supervision will be eliminated all together due to the fact that they have been found to be the most lax regulatory issues. Larger financial institutions will be overseen with stricter regulations to prevent risks that may threaten the system. Smaller banks will still be able to hire independent regulators which will most probably be the most lenient they can find.
The main reason the banking industry evaded much stricter changes is due to the aggressive Small Business Management Tips lobbying done by the regulators in order to protect the authority of their agencies.
Another key point is the new consumer protection watchdog that will be put into place in order to regulate various banking products. Then when necessary, they will be able to ban those products that are simply too risky, without any consideration of who is offering them. On the down side, only companies with a minimum of $10 billion in assets will be confined by the consumer protection watchdog. This limit was put into place due the efforts of the Chamber of Commerce, the National Automobile Dealers Association, and the payday lending industry.
Looking at this bill as an average American citizen I can see many pros and cons. My main concern is; can a regulatory agency regulate themselves? Only time will tell.

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