There is no question our country is in need of regulatory reform. While the law recently passed in the Senate has some provisions that are beneficial in accomplishing that goal, there are too many provisions that help Wall Street at the expense of businesses on Main Street and the American taxpayer.
By lumping giants like Goldman and AIG with nonfinancial organizations like Idaho farmers and manufacturers, the law ensures increased costs to all Idahoans.
To achieve the goal of reforming Wall Street without increased costs to Main Street, we must:
1. End too Big to Fail. The current law creates a mechanism that allows the costs of failed large institutions to be passed on to consumers through smaller community banks and credit unions.
2. Go after the cause of the problem - not Main Street. The law will not affect the housing giants Fannie Mae and Freddie Mac. Those organizations need careful consideration in any reform.
3. Audit the Federal Reserve. The Fed's actions need to be carefully examined to determine its role in the economic recession and the ensuing bailouts.
4. Understand the consequences of changes made to the financial system. While reform is necessary, it is just as important to understand all the effects the law will have on our economy.