Both the New York Times and the Wall Street Journal have been finding out details before the Senate Financial Reform bill is released.

Some key points these reporters mention:

• CFPA - the much fought for Consumer Financial Protection Agency, has been put under the Federal Reserve. Bear in mind advocates have been fighting for an independent agency as well as the Federal Reserve has always had consumer protection power. Banksters - score 1, Americans - 0.
• Federal Reserve to oversee banks with $50 billion or more, and a vaguely defined "systemically risky institutions", in other words the same players who brought you the bail out are still running the show.
• A new systemic risk council stuffed with the same players, the Federal Reserve, the Treasury and then the FDIC, the SEC. a 75% vote on this council can overturn any rulings of the CFPA.
• OTC (Over the counter) derivatives are to be regulated but as we saw in the House Bill, there are enough loopholes and exemptions to drive a Mac truck through them.
• Empty, non-binding shareholder vote on executive compensation which does nothing (Say on Pay bill).
• It appears the Volcker Rule is out.
• It appears Audit the Fed is completely dead, not even mentioned, so much for discovery on $2 trillion dollars in loans.
• Smaller bank holding companies, if they have a federal charter, would be overseen by a new regulator formed out of the Office of the Comptroller of the Currency, which already oversees national banks.
• The Federal Deposit Insurance Corporation, which already oversees state-chartered banks that are not members of the Fed system, would gain oversight over those that are.

From the New York Times, here is the guaranteed derivatives loophole, which has been demanded by the Banksters:

Companies that do not primarily deal in derivatives and are not major participants in the swaps market would be exempt from the new requirements. The size and extent of that exemption has been a key focus of behind-the-scenes negotiations over the past several months.

Right. All you have to claim is this isn't your main business and wala, you are exempt.

There will assuredly be more. After all, why regulate the #1 element which brought down the globe and has us in hock past our asses?

Then, through a lot of bureaucratic, legalize gobbledygook, they are killing the CFPA. Why waste the paper, just write in the bill fuck you American consumer and save the taxpayers the money from creating a toothless new agency.

Folks, this is just an overview. Firstly we must parse through the actual legislation itself and then, with amendments, one can get an entirely different piece of legislation after a bill is introduced. Then, assuming a miracle happens and the Senate actually passes something (after 18 months from the biggest financial Armageddon since the Great Depression), they must reconcile the House and Senate versions of the bill. We have some overview here on what the House actually passed.

One thing I find hilarious is the claim Senate aids have been working on legislation for months. Even something as complex as this, I'm positive even we could write it in 6 months. What are they doing? Architecting a massive document to make sure it does nothing and has no teeth? Burying loopholes and exemptions to make sure few will see them until after the bill is passed?

Seriously, this is offensive. It's 18 months past this debacle and we get bought and paid for empty nothing to guarantee another Financial Armageddon will happen.