The coming liberal thugocracy

[Undertoad]

Originally Posted by tw

Some of the so many posted previously in other threads.

Point to ONE. Just ONE.

http://online.wsj.com/article/SB122403045717834693.html

While there has been significant deregulation in the U.S. economy during the last 30 years, none of it has occurred in the financial sector. Indeed, the only significant legislation with any effect on financial risk-taking was the Federal Deposit Insurance Corporation Improvement Act of 1991, adopted during the first Bush administration in the wake of the collapse of the savings and loans (S&Ls). FDICIA, however, substantially tightened commercial bank and S&L regulations, including prompt corrective action when a bank's capital declines below adequate levels and severe personal fines if management violates laws or regulations.

. . .

Originally Posted by tw

Basel 1 that defines equity required to be held. Investment banks were exempted from this international standard by the George Jr administration. ... But George Jr refused to implement Basel 2.

[citation needed]

[tw]

Originally Posted by Undertoad

Point to ONE. Just ONE.

Where does the FDIC legislation make Enron accounting illegal? It does not. The 1991 legislation addresses principles from Basel 1 - an international standard for how much equity a bank must hold. Equity in banking – not public corporation accounting standards.

BTW, the US is the only nation that does not comply to the International standards for accounting? The US standards are different from the rest of the world.

Only American banks required to meet Basel 2 are those who operate internationally. And those are the banks that have been so stable during this meltdown. Where did George Jr implement Basel 2? He did not even do that.

Enron style accounting remains so common as to even be evident in AIG just before its collapse. The detail cited in numerous other posts. Yes, the auditor had doubts. But today's deregulated accounting and near zero SEC enforcement made it difficult even for the internal auditor or PriceWaterhouse to see that AIG was collapsing.

Fortunately we have the accounting that a business school graduate - George Jr - wants. So what happened to all that cash in the Highway Trust Fund that the spread sheets say is still there? Sabanes-Oxley does not even require the president to sign off on the accounting.

UT tells us that the new American deregulated accounting standards are good? UT - show me where Enron style accounting practices were made illegal. You cannot. AIG was fully involved in hiding losses even just before the collapse. So what are these 'surprise' AIG losses that have already consumed $120billion? UT tells us everyone knew about these losses? Hardly. Due to today's deregulated accounting, nobody knows how much more AIG will lose.