Anonymous
Anonymous asked in Politics & GovernmentPolitics · 9 years ago

Why did the liberal politicians Financial reform bill regulate banks not to give out loans?

Their financial bill is destroying the economy even further! People with good credit can't even get LOANS!

So its pretty obvious the far leftists have planned to Collaspe America all along.

Wonder if the Apollo Alliance will go away now?

Update:

The Republicans- like Rand Paul wants to Repeal all of Obamas radical destructive Bills he passed.

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  • 9 years ago
    Best Answer

    Here is a simple explanation of the bill. http://www.washingtonpost.com/wp-srv/special/natio... As you can see, there is no restriction forbidding banks from making loans. They stopped doing that in 2008, even after they were bailed out. Many small businesses went under because they could not cover their expenses with previously agreed lines of credit.

    The main reason banks are still not making loans is that their ability to turn these loans into pieces of stock called derivatives has been severely restricted. Since it was these very derivatives that caused the financial crisis, we cannot afford to allow them to do this again. Eventually, they will figure out that their ability to make money is being hampered by their refusal to invest in the economy. For now though, they're sitting on their reserves as if protecting themselves from all risk is a good business decision.

    If you can't get a loan, you need to look at your credit score and see what you can do to improve it.

  • 9 years ago

    And what part of the Financial Reform Bill stopped banks from giving out loans? Let see the specifics.

    No part did.

    You are merely repeating some boneheaded rightie talking point you must have heard somewhere.

  • 9 years ago

    this all started during the Clinton years when Barney Frank and the boys pressured the banks to relax lending rules

    then in 2005, Bush tried to get the mess back under control, but when the bill hit the Senate, one senator took it upon himself to filibuster to protect the lax rules established during the Clinton years

    then, the banks went crazy giving loans to people who previously would not have qualified

    around September 25th, 2008, it all came crashing down

    then we started the bailouts, and the banks radically changed their lending policies

    in January 2009, the filibustering Senator was sworn in as President of the USA

    Source(s): congressional record, NY Times, WSJ
  • Anonymous
    9 years ago

    The intention of that bill is to keep banks from giving loans to people who can't afford them.

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  • Dale
    Lv 7
    9 years ago

    Nope wrong how many lies can a person tell in one day. You going for the record?

  • Anonymous
    9 years ago

    Same reason why ObamaCare bill regulates insurance companies not to sell any policies to kids - neither to sick kids nor to healthy kids anymore.

  • Jim
    Lv 5
    9 years ago

    Because they're all lawyers, too long in DC & too insulated to have any economic sense.

  • Anonymous
    9 years ago

    Stupid repuke lie , as usual ..

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