Financial firms are still lobbying on Capitol Hill to weaken the proposed financial regulation bill. Steve Forbes, CEO of Forbes, Inc., gave his opinons.
“If they didn’t do anything on this bill and let it die, you’d see the market go up 2,000 points,” Forbes told CNBC.
“There’s so much bad stuff in this—it perpetuates too-big-to-fail, it hurts small banks and businesses.”
Forbes said the bill can be seen as a “semi-takeover” by the government of the banking industry, because the firms would be have to be more dependent on discretion by bureaucrats if “some of the worst parts of the bill get through.”
“What you’re going to find is that these companies that try to make a point of thinking they can sit down with the devil and not get bit are going to be proven wrong,” he explained.
In regards to a provision in the bill that would require large banks to split off their derivative-trading operations, Forbes said companies should be given some requirements instead of having governments try to ban or regulate the derivatives.
“What are derivatives? They are modernized versions of soybean futures!” he said. “So put sensible margin requirements or clearinghouses and be done with them.”
Scorecard — What He Said:
- Forbes' Previous Appearance on CNBC (May 11, 2010)
More Views on Financials:
CNBC Data Pages:
Bank of America
No immediate information was available for Forbes or his firm.