by Zach Carter, Media Consortium blogger

Last week, the U.S. Senate rejected a plan that would have broken up the nation’s six largest banks firms into firms that could fail without wreaking havoc on the economy. Even though the defeat reinforces Wall Street’s political dominance, there is still room for a handful of other useful reforms, like banning banks from gambling with taxpayer money and protecting consumers from banker abuses. After looting our houses, banks are now pushing for the ability to bet on movie box-office receipts, and will keep trying to financialize anything they can unless Congress acts.

The SEC accuses Goldman Sachs of fraud in a civil suit. An audit of Lehman Brothers reveals it used a shady accounting practice to conceal $50 billion in debts. An investigation of Wa-Mu shows it was rife with fraud, including fabricated loan documents. Clearly, these bankers can’t stop themselves from engaging in deceit to make money. And the “free market” has failed to moderate their reckless gambling. Strict regulation is crucial to prevent them from crashing the world economy again.

Pres. Obama’s “stern talking to” the financial industry, noted by Christy in her post, “Reason #427 Why Self-Regulation Doesn’t Work,” may be one side of a squeeze play, with Sen. Levin squeezing from the other direction.

Many of you may be aware of the New York Times article shining a spotlight on those parasites that continue to prey on vulnerable mortgage holders. They pose as law firms and offer money back guarantees. The State of California Dept of Real Estate has helpful information. I hope it can assist someone who is looking for legitimate assistance and hoping to avoid further pain.