This is very, very interesting news. Is the White House serious, or is this a pro-consumer doggie biscuit to keep the left wing off their back? Here's hoping it's the real thing:

WASHINGTON (AP) -- The Obama administration waded into negotiations over Wall Street regulations Wednesday, calling for limits on the size of financial institutions and insisting that consumer protections remain a central objective of legislative attempts to rein in the industry.

In the Senate, talks continued on how to create a consumer protection entity. Republicans pressing for a watered-down consumer agency even as they voiced optimism that they could reach a deal with Senate Banking Committee Chairman Chris Dodd, a Connecticut Democrat, within a week.

The Treasury Department circulated proposed legislation that would prevent commercial banks from carrying out high-risk trades and that would restrict the size of financial firms to holdings no greater than 10 percent of the entire financial industry's liabilities. That restriction would apply only to firms that grow through a merger or an acquisition.

Consumer protections and doing away with financial firms deemed too big to fail are two of the key elements of the legislative efforts to overhaul the rules that govern Wall Street and prevent a recurrence of the 2008 financial crisis. In reiterating its points, the administration was making certain its views were being heard in the Senate at a sensitive time in negotiations between Dodd and Sen. Bob Corker, R-Tenn.

Continue reading »

Gee, what are the odds Dick Cheney will once again accuse the Obama administration of making the nation vulnerable to terrorist attack again this morning when he makes a fresh round on the talk-show circuit with an appearance on ABC's This Week?

Fortunately, Joe Biden will also be out there, making two appearances in one day (on "Meet the Press" and "Face the Nation"). Right-wingers love to make fun of Biden, but stacked up against Dick Cheney, just about anyone looks good.

ABC's "This Week" - Former Vice President Richard Cheney sits down with guest anchor ABC News’ Congressional Correspondent Jonathan Karl.

CBS' "Face the Nation" - Vice President Joseph Biden.

NBC's "Meet the Press" - Vice President Joseph Biden, former Rep. Harold Ford, Rep. Aaron Schock, R-Ill., David Brooks, Rachel Maddow.

NBC's "The Chris Matthews Show" - Panel: John Heileman, New York Magazine; Katty Kay, BBC Washington Correspondent; Gloria Borger, CNN Political Analyst; Bob Woodward, Washington Post.

CNN's "State of the Union" - National Security Adviser Jim Jones; Sens. Evan Bayh, D-Ind., and Jon Kyl, R-Ariz.

CNN's "Fareed Zakaria GPS" - Paul Volcker, Obama's key economic advisor and former fed chairman, on a crisis even more serious than financial reform. Then, Iran increases its nuclear capabilities - what options are left? Finally, a discussion with South African President Jacob Zuma. 20 years after Nelson Mandela was set free, where does the country stand?

CNN's "Amanpour" - An exclusive interview from Haiti with U.N. Goodwill Ambassador Angelina Jolie. Christiane speaks with Jolie about adoption in Haiti and child trafficking in the midst of the disaster. Iran's Rallying Cry: 31 years after Iran's Islamic revolution there are massive pro- and anti-government rallies. The government vowed opposition protests would be crushed. We look at Iran's Islamic republic at odds with itself.

"Fox News Sunday" - "As Washington recovers from its historic snowfall, a political storm continues to rage over homeland security. Should John Brennan, the president's chief counterterrorism adviser, step down? We'll get reaction from Gen. Jim Jones, White House national security adviser, and Sen. Lindsey Graham, R-S.C."

What piques your interest this morning? Leave your tips in the comments.

Very interesting - if Congress actually intends to pass this. (Or if the banks let them!) The repeal also removed protections that kept banking and insurance interests separate, which accelerated the Wall St. meltdown:

Dec. 28 (Bloomberg) -- A one-page proposal gaining traction in Congress could turn back the clock on Wall Street 10 years, forcing the breakup of banks, including Citigroup Inc.

Lawmakers in both parties, seeking to prevent future financial crises while soothing public anger over bailouts and bonuses, are turning to an approach that’s both simple and transformative: re-imposing sections of the 1933 Glass-Steagall Act that separated commercial and investment banking.

Those walls came down with passage of the Gramm-Leach- Bliley Act of 1999. A proposal to reconstruct them, made by U.S. Senators John McCain and Maria Cantwell on Dec. 16, would prevent deposit-taking banks from underwriting securities, engaging in proprietary trading, selling insurance or owning retail brokerages. The bill could also force the unwinding of deals consummated during the financial crisis, including Bank of America Corp.’s acquisition of Merrill Lynch & Co.

“The impact on Wall Street would be severe,” Wayne Abernathy, an executive vice president at the American Bankers Association, said in a telephone interview.

[...] Splitting banking functions needed for the smooth operation of the economy from riskier securities and trading activities was proposed earlier this year by the Group of Thirty, a nonprofit organization made up of former government officials and bankers, including Paul Volcker, a former Fed chairman and head of the president’s Economic Recovery Advisory Board.

The group said the crisis spread like a contagion from firm to firm, putting both commercial banks and securities companies at risk. To prevent a domino effect, systemically important financial institutions shouldn’t be allowed to engage in proprietary trading that involved “particularly high risks” or “serious conflicts of interest,” the group said.

While that would not bar banks from underwriting securities, as some U.S. lawmakers want, it might force them to shutter or sell trading divisions. The financial system has “failed the test of the marketplace,” Volcker said in January. He added that “it’s been proven that they’re unmanageable, the existing conglomerates.”

.