Friday, February 15, 2013

Senator Elizabeth Warren Makes Her Debut at Senate Banking Committee (VIDEO)

Senate Banking Committee Hearing - Senator Elizabeth Warren vs. the Regulators

I am somewhat torn on this. I love Senator Warren's passion and want to see her continue to kick ass. This was who "We the People" needed on our side. However, I am a bit concerned that she might get burned out a little too early, on the wrong people. 

Take a look at her exchange with regulators of the Federal Reserve, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, Securities Exchange Commission, Office of the Comptroller of the Currency, Commodities Futures Trading Commission,  and the US  Treasury.

In no way am I saying that penalty over trial is the way to go. In fact, Senator Warren brought up a very good point -- trial helps us extract evidence and get it on record. I personally have defended the regulators as of recently, but she has forced me to change my mind somewhat. 

Just a few days ago Bank of New York Mellon lost a federal case against the Internal Revenue Services, where they were found guilty of abusing the “Structured Trust Advantaged Repackaged Securities” tax shelter, for their institutional clients. The bank will be forced to cough up more than $800M. So to Senator Warren's point, the IRS held an upper hand here, because they got penalty pay and a trial to put their evidence on record. By the way this case will set the tone for the tax shelter debates taking shape in Congress. 

This all makes sense and is great, but is Senator Warren's strategy being used on the right folks? Regulators or Wall Street?

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