Critic: Obama's overhaul is really no overhaul at all; banks still practice their own Ponzi scheme
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Not that an overhaul isn't needed at least for the banks' sake, if not for ours. (Several banks just officially veered into junk territory in a major S&P downgrading.)
Obama's plan calls for plenty of new regulation of the banking industry but pretty much leaves the industry itself intact, so expect more junk behavior. Forget about a new Glass-Steagall Act — George Soros, for one, says that would be "impractical." So the big banks will still be able to make reckless investments outside their primary areas.
Nomi Prins (author of It Takes a Pillage) says:
"The 'sweeping overhaul' of the financial system detailed by Geithner on behalf of the Obama administration does not overhaul the system at all. True, items like enhanced issuer accountability and restrictions for securitized products, greater leverage constraints and relegating certain derivatives to exchanges, are useful alterations. But, giving the Fed a bigger role, creating a 'council of regulators' to oversee the existing oversight bodies and allowing the biggest Wall Street players to maintain their status, leaves the system intact.
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