Thursday, June 24, 2010

Sen. Judd Gregg: Financial Overhaul Bill, as Written, 'Will Cause a Massive Contraction of Credit'"

From CNBC:

Financial Reform Will Cause Credit Crunch: Sen. Judd Gregg
The US will face a severe credit crunch if the financial regulation bill passes in its current form, Sen. Judd Gregg (R-NH) told CNBC Thursday.

"This bill as it's presently written is going to create a massive contraction in credit, I believe, in the financial markets and on Main Street over the next year to year and a half as people try to adjust to the new standards that are put in this bill," said Judd.
Judd, who is a member of House-Senate conference committee hammering out the final version of the bill, said the derivative language in the bill is one of the main reasons there could be a major credit squeeze....MORE