When the African slaves were viciously
transported to America, they worked in the
cotton fields, in plantations and industries.
They created the material wealth that made
America great.. Unfortunately, the distribution
of wealth in America has favoured the Caucasian
immigrants and other social groups.
With the decline in American fortunes and the
world-wide econo mic crises of the last five
years, it became very necessary to re-shape the
way American financial institutions operated.
Initially, the financial establishment kicked
against the drive to regulate their banking
practices. Investment executives often
misadvised their clients, promising EL DORADOS
that ended in the wilderness.
The regulatory institutions were either
complacent or incompetent. The banks should have
been asked to beef up their capital in good time
and this could have saved them from asking and
desperately obtaining bail-outs from the
government.
Recently, the United States Undersecretary, Lael
Brainard observed that "the recent financial
crisis underlined the necessity for banks
world-wide to hold more capital to ensure that
they can weather downturn. Mrs Brainard pointed
out that the "lesson is clear: more and higher
quality capital must be at the core of our
efforts to ensure a more resilient financial
system" There is no way the world can develop a
globally convergent financial system if the
United State's financial order is not regulated
more tightly.
The falsely canvassed opinion by the Tea Party
that the Obama Administration is adopting
socialist measures is convicted of error. The
scare-crow system of political dialogue being
adopted by this conglomerate of political
malcontents and hecklers will do America no
good.
We all understand the under-current flowing in
the storm in their tea cups. Apart from fanning
the mindless violence that seems to be the
trademark of The Tea Party politics, rational
people applaud the efforts being made by the
OBAMA ADMINISTRATION to turn the fortunes of the
United States around.
America does not need socialism but is in need
of social policies that can bring about social
change.
There is a consensus that some Americans are
more priviledged than others. Some can borrow
more easily to start businesses, repay loans and
enjoy the good life. It must be pointed out that
America is a land of opprtunities and one can
land on any page.
Wall Street has to reconcil its financial
pursuits with the concerns of Main Street. In a
nation, where a group eats the fat of the land,
while others eck out their living as hewers of
wood and drawers of water is bound to experience
internal insecurity, muggings and mayhem caused
by the dispossessed.
The OBAMA/DOOD bill has woven a tidy net that
will keep the US financial system under
eagle-eyed regulators.
The US goverment has included in the bill,
contingency plans for responding to emergencies
and guidelines which flash warning lights to big
and small corporations. The Era of Corporate
recklessness is at its dead-end.
No bank will be granted a favoured treatment.
The scope of operation is now well-defined.
Outsourcing of busines has come under close
watch as well as the export of capital.
American banks' stress test mechanisms are now
better defined. As a result, European banks
operating in America will have to imbibe the new
legal culture of probity
The standards of supervision and regulation are
now very stringent. As a result, customer
confidence will be restored and banking will no
longer be casino lucky dip.
Financial speculators, investment ponzi schemes
will be put under regulatory vigilance and that
will be good for the American and world
economies..
Professor Dr Emmanuel Omoh Esiemokhai is the
President of the proposed AFEMAI UNIVERSITY,
FUGAR, EDO STATE, NIGERIA.
