Wednesday, July 28, 2010

Government Mandates Diversity on Wall Street, Bloats Government Further

It always seems to happen. Inside the massive, 2,000+ page bills that manage to move their way through congress, there always seems to be a few nuggets of pure gold that no one seemed to notice before. Where can one find a complete take-over of the student loan system? The health care bill, of course. A tax on gold? Naturally, the health care bill.

Needless to say, to find out that a Financial Reform bill also includes new industry employment mandates should come as no shock to anyone.
Deep inside the massive overhaul bill, Congress gives the federal government authority to terminate contracts with any financial firm that fails to ensure the “fair inclusion” of women and minorities, forcing every kind of company from a Wall Street giant to a mom-and-pop law office to account for the composition of its work force.
...This applies to “services of any kind,” including investment firms, mortgage banking firms, asset management firms, brokers, dealers, underwriters, accountants, consultants and law firms, the legislation states. Every contractor and subcontractor must now certify that their workforces reflect a “fair inclusion” of women and minorities.
"Fair inclusion," eh? So, what constitutes "fair inclusion?" Surely, with an outcome a severe as contract termination, the government would spell out what would be considered "unfair." Let's continue to read, in the hopes that my government won't let me down.
The law sets no quotas, not even ratios or goals for hiring. And the government has options other than termination at its disposal for contractors who fail to meet the “fair inclusion” standard, including referring the matter to the Labor Department.
Well, nevermind that, then.

But wait, it gets better. What is one of the reasons why lawmakers felt it so necessary to add this ridiculous provision into the bill? Because of how hard minority groups were hit after the subprime mortgage industry collapsed. You see, they don't feel that woman and minority-owned businesses received an adequate share of the $700 million bank bailout. Gary Acosta, co-founder of the National Association of Hispanic Real Estate Professionals, argued in the article, “Considering the devastation that has taken place in the minority communities – that was done by irresponsible and predatory lending – this makes sense and helps them mitigate that."

...Right. Because the individuals who insisted on buying a $200,000 home on a $15,000/year job bear absolutely no responsibility in those situations. Those ev-il bankers used their jedi mind tactics to TRICK them into lending that money! And it was TOTALLY someone else's fault that those businesses decided to lend completely unqualified people that money!

The closing act to this new gem of a government mandate, is probably just as you'd expect. The law "establishes at least 20 new Offices of Minority and Women Inclusion across the Treasury Department, Federal Reserve, Securities and Exchange Commission and other finance-related agencies."

So, at the end of the day, here's what we have - a fuzzy government mandate, rewards for those who made irresponsible decisions, and an inflated government.

Sounds about right, don't you think?
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1 comment:

  1. Sounds like bunch of liberal cronies who have no sense of fiscal responsibility because they waste money,oxygen and space.