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As others see it: Financial overhaul is necessary

The idea of good government is to always be moving forward, improving upon the foundation that has been laid by predecessors, not to tear down what was done.

That seems to be the case with congressional Republicans who would repeal health care reform if they win the U.S. House.

They are also pledging to repeal the financial systems reform passed earlier this year should Republicans win control of Congress. Should that happen, consumers would lose out and Wall Street would be returned to the very conditions it was that brought our economy on the brink of collapse.

Repeal of the Wall Street overhaul would be wrong, as pointed out by President Barack Obama in his Saturday address . ...

The legislation that passed helped bring Wall Street into the 21st century, making up-to-date rules, providing oversight and making trading more transparent, especially among the more risky, "no holds barred" derivatives market. Other legislation dealt with bank overdraft fees and abuses such as retroactive interest rate increases on credit card balances.

The Wall Street overhaul put in place the regulatory requirements necessary to prevent the collapse that saw the $700 billion TARP bailout of the big banks in the last months of the George W. Bush administration.

A champion of the issue has been U.S. Rep. Collin Peterson, DFL-7th District, who believes his House Agriculture Committee should have jurisdiction over derivatives trading, since much of it involves commodities. He was able to work into the bill some transparency measures for derivatives.

Differing from his Democratic colleagues, however, Peterson believes that no bank is too big to fail. He believes big banks should be broken up so that they no longer threaten the collapse of the economy with their failure.

Repeal of the Wall Street overhaul would also preserve big banks and make the financial system less transparent. Without warning, an economic collapse could be imminent without warning -- just like before. And we don't want another Great Recession.

Bemidji Pioneer