published Thursday, October 27th, 2011

U.S. Sen. Bob Corker, R-Tenn., predicts credit problems from new Fed rule

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    In this file photo, Sen. Bob Corker, R-Tenn., speaks during a news conference on the debt ceiling on Capitol Hill in Washington. (AP)

U.S. Sen. Bob Corker, R-Tenn., said today he expects new banking regulations could soon limit access to capital for some businesses.

Corker said the so-called Volcker rule in the new Dodd-Frank financial regulation could cut credit for many borrowers by cutting off some forms of lending.

“When you look at credit availability, I think within the next 60 days you are going to hear a hue and cry from across the country of mainstream manufacturing entities because of some of these rules,” Corker said. “Here we are in the height of the time when people are having trouble getting credit, this Volcker rule comes out. People think it’s about traders at banks making money gambling at banks. But at the end of the day, what it also affects credit throughout our country.”

Named for its author -- former Federal Reserve Chairman Paul Volcker -- the new rules would ban banks from making short-term trades for their own accounts and prevent them from owning or sponsoring hedge funds and private-equity funds. The regulation is aimed at heading off risk-taking that helped fuel the 2008 credit crisis.

But during a Chattanooga appearance today, Corker said the rule is another example of regulatory overreach by the federal government.

“It’s unbelievably frustrating to know that these policies are going to such damage to the economy and to the things that people care most about in the economy,” he said.

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Facts said...

Whoever wrote this article, do us all a favor. When you interview Senator Bob Corker on anything that references the Dodd-Frank financial regulation, please ALWAYS included the fact that he helped write the Dodd-Frank bill. He now runs from it but he was a very important person in this ever passing.

October 27, 2011 at 2:07 p.m.
Astropig said...

"the new rules would ban banks from making short-term trades for their own accounts and prevent them from owning or sponsoring hedge funds and private-equity funds. The regulation is aimed at heading off risk-taking that helped fuel the 2008 credit crisis."

And how, exactly Mr. Bought And Paid For Senator, would this restrict anything BUT the casino gambling that is modern day Wall Street ?

It would be nice if we had capitalism (where people can succeed and fail based on their hard work and smarts), but we have "crony capitalism" where people who are well connected to people like the senator there can only succeed,never fail.

Crony capitalism is the sworn enemy of real capitalism because crony capitalism needs people on the take like Corker to stay in operation.

October 27, 2011 at 2:46 p.m.

The uninformed (Facts) strikes again.

Senator Corker was involved in the earlier, bi-partisan drafting of the Dodd-Frank bill. But he voted against it and is one of the sponsors of legislation calling for its full repeal.

October 27, 2011 at 4:04 p.m.
ibshame said...

bookieturnersghost wrote: "Senator Corker was involved in the earlier, bi-partisan drafting of the Dodd-Frank bill. But he voted against it and is one of the sponsors of legislation calling for its full repeal."

So in other words he was for it before he decided he was against it? LOL So he's a flip-flopper. Hmmm now why would he turn against something he was already for? Could it be because Mitch McConnell reminded him of their REAL OBJECTIVE - to make Barack Obama a ONE-TERM President at any cost? Oh no, our great Senator Corker would never bow to that kind of pressure would he? LOL

October 27, 2011 at 4:11 p.m.
mhteg said...

If you US didn't spend all their money on the war, they wouldn't have to raise the debt ceiling. They either have to raise the debt ceiling or cut spending costs or China might take over. If you don't know what the US debt ceiling is, this article gives an awesome explanation on it.

http://explainlikeakid.blogspot.com/2011/09/lets-say-you-have-credit-card-with-2000.html

October 27, 2011 at 7:18 p.m.
amnestiUSAF84 said...

Facts said... Whoever wrote this article, do us all a favor. When you interview Senator Bob Corker on anything that references the Dodd-Frank financial regulation, please ALWAYS included the fact that he helped write the Dodd-Frank bill. He now runs from it but he was a very important person in this ever passing.

So Corkale's predictions aren't PREDICTIONS after all? But the diehard masses will remain loyal, no doubt.

October 27, 2011 at 8:03 p.m.
amnestiUSAF84 said...

bookieturnersghost said... The uninformed (Facts) strikes again. Senator Corker was involved in the earlier, bi-partisan drafting of the Dodd-Frank bill. But he voted against it and is one of the sponsors of legislation calling for its full repeal.

U'rins r sayin' "B4 caukle wuz agin it he wuz fer it?"

October 27, 2011 at 8:05 p.m.
nucanuck said...

If Bob Corker doesn't believe that investment banking should be seperated from commercial banking, then he doesn't understand what has caused the massive financial instability that is bringing Europe and the US to their knees.

October 28, 2011 at 2:04 a.m.
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