Look What Surprises They Snuck Into The Financial Reform Bill
Even just a decade ago, major pieces of legislation in the U.S. Congress would be just a few dozen pages long. But today, it seems like every time Congress passes an important bill it ends up being over a thousand pages long. In fact, the final version of the new financial reform law was over 2,300 pages. Overall, as we wrote about extensively in a previous article, this much-ballyhooed new law does a whole lot of nothing, but it turns out that lobbyists and special interests were able to insert a few nasty surprises that we are just now finding out about. But it was the same thing with the health care reform law. It was only after it was passed that most of us learned that it contained a provision that will force U.S. small businesses to collectively produce millions more 1099 tax forms each year. Now small businesses from coast to coast are screaming bloody murder about that provision but it is too late – the law has already passed. Unfortunately, there are some surprises in the recently passed financial reform law that are nearly just as bad.
So just what are those surprises?
Well, first let’s talk about what the financial reform law does not do. The financial reform bill was supposed to “fix” Wall Street and the financial system, but it did not do much of anything….
-It does nothing to address the problems with Fannie Mae and Freddie Mac.
-It does not eliminate “too big to fail”.
-It does absolutely nothing to eliminate the horrific bubble in the derivatives market.
-It does nothing to reform the organization most responsible for the recent financial crisis – the Federal Reserve. In fact, this new law actually gives the Federal Reserve even more power.
But it does create a ton of new paperwork and a bunch of new government organizations.
But was there any major law that Congress has passed over the last several years that did not increase the size and scope of government?
That is a good question.