Hello behemoth bank bill!

http://seattletimes.nwsource.com/html/businesstechnology/2012361072_apusfinancialoverhaulhighlights.html

Executive Summary:

The new bank regulatory bill has passed the Senate and appears set to become law.  This is another buge bill like the health care bill (>2000 pages) and it will take months to determine all the effects.  Some of the provisions include:

A10-member council led by the Treasury secretary may identify companies they feel are "too big to fail."  Companies identified in this way could be liquidated by the government.

A great deal of "watching" and "regulating" by new and old divisions of government, sometimes government agencies seemingly watching other government agencies being watched by other government agencies.

More restrictions on what products banks can offer and what banks can invest in.

(Mostly) non-binding rules about executive pay.  However, if executive pay appeared to "promote risky business practices," the feds could block it.

The end of the TARP program passed in 2008 to buy up toxic mortgages.  $11 billion from some of the remaining funds will be used to fund some of the new oversight programs in this bill.  The rest of the funds needed will come from additional fees the government charges banks.

Opinion:
Where do I start?  Another day, another huge bill to be passed that no one knows exactly what is in it.  However, if what the AP summary says is accurate, there is plenty to be worried about.  10 people (and the Treasury Secretary) will now have the power to determine if a company (maybe the one YOU work for) is "too big to fail" and seize it whenver they wish.  This is not something that will make people want to invest in large companies, regardless of their financial health.  Not to mention that this would be taking private property without due process.  But the Constitution is a living document that means whatever we want it to mean, right?  What this bill means for the average person is that 1) their bank fees are going up, as banks now have fewer ways to make money and 2) you had better hope you don't work for a company that is "too big to fail".

Will we also now get an acknowledgement that TARP was an ill-advised bill that perhaps was never intended to buy up bad mortgages?  Nah.