The New York Times ran this editorial supporting strong financial reform. Here are key excerpts:
The Volcker rule and the derivatives spinoff are critical structural reforms, not just rule changes. They are essential to protecting the system.
Banks and other lenders are also fighting to ensure that a new consumer financial protection regulator is neither powerful nor independent. There must be no exceptions for auto dealers and payday lenders, no pre-emptive or veto power for federal officials over the consumer regulator’s decisions.
In order for the financial system to avoid more disasters, derivatives must be traded on transparent exchanges, with only very narrow exemptions, and there must be legal recourse against banks that violate the requirements. Banks must be required to pay into a fund to cover the costs of dismantling failing institutions. Brokers must have to put investors’ financial interests first.
Anything less is not real reform. Anything less means that the system could implode again.