Topic: Financial Reform

The House passed a financial reform bill, often referred to as the Dodd-Frank Act, which grants the Federal Reserve Board of Governors increased oversight of banks. Critics, including Ron Paul, argue the bill empowers a private banking institution to oversee itself rather than providing true government accountability.

The Supreme Court's stance on the Second Amendment and the potential impact of Elena Kagan's appointment are discussed. The conversation also touches on the "moral hazard" created by the financial reform bill, which allows the Federal Reserve to oversee the banking system.

President Obama's weekly address regarding the Financial Reform Act is characterized as a power grab for the Federal Reserve. The hosts argue that the bill empowers the same bankers who caused the recession to oversee themselves, rather than providing the consumer protections the President claims.

The show concludes with a preview of upcoming topics, including Laura Bush's claim that she and the President were drugged in Germany, the loss of a secret Global Strike Glider from Vandenberg Air Force Base, and the "theater" of the Goldman Sachs congressional hearings.

The hosts discuss an Atlantic Monthly article titled "The Quiet Coup," which argues that the financial industry has captured the U.S. government. They list high-ranking Obama administration officials, such as Larry Summers and David Axelrod, who received millions in payments from Wall Street firms like Goldman Sachs and Citigroup. They suggest that "financial reform" is actually a mechanism for the next industry bailout.

Harry Markopolos stated that no one in Washington has been held accountable for the 2008 financial collapse or the Madoff scandal. He highlighted the irony that some SEC staffers responsible for the oversight failures were actually promoted or moved to lucrative private-sector jobs. Markopolos called for a complete teardown of the current regulatory scheme, citing a total lack of accountability in government.