US House plays at trying to repeal Dodd Frank

Discussion in 'Politics, Religion, Social Issues' started by LizKat, Jun 9, 2017.

  1. LizKat macrumors 68040


    Aug 5, 2004
    Catskill Mountains
    Well the Repubican-controlled House did in fact pass HR 10 yesterday, which purports to repeal the Volcker Act and completely gut the Consumer Protection Agency, ditch some toolsets meant to enable safe unwinding of a failing big bank, etc. HR 10 is a nasty piece of legislation in detail, which the GOP talking points have glossed over by talking about how it will restore competition in community banking and also let Main Street banks operate with less red tape...

    The Senate, in its not-quite-wide-enough majority wisdom. has already telegraphed that this bill is DOA on their side of the Congress. They'd need 8 Democratic votes they would not be able to round up. Still it's enlightening to keep track of the ways in which the Republicans and Trump are trying to interpret what means "drain the swamp".

    Even the White House, in its statement of support for the CHOICE Act, concluded by writing “the Administration looks forward to working with the Senate on arriving at a final piece of legislation,” admitting that the bill as it is won’t reach the finish line.
    Further, not all investment bankers even favor the idea of gutting Dodd-Frank entirely and "starting over" with new regulations. Doubtless because this administration would start over by having zero regulations, which, as Morgan Stanley's CEO James Gorman says, "Americans don't want." He stipulates there are parts that seem too onerous or that have had some unintended consequences but rejects the idea of complete repeal, noting that Dodd Frank's toolbox is part of a series of measures installed over a forty-year period that have helped the US financial system lay claim to what stability it has.

    An opinion of HR 10 from a fellow at the liberal think tank Roosevelt Institute, for those interested:

    No one should think the idea of repeal is dead, and there are likely to be some piecemeal legislative efforts before 2018 to reduce financial regulations that protect consumers. Some of them may pass. Stay tuned.
  2. Eraserhead macrumors G4


    Nov 3, 2005
  3. mac_in_tosh macrumors regular


    Nov 6, 2016
    Maybe the founding fathers knew what they were doing.
  4. LizKat thread starter macrumors 68040


    Aug 5, 2004
    Catskill Mountains
    They certainly seemed to think they needed a Senate to keep a "hot-headed" House representing populist urges in check. Who knew the House "populists" were instead to end up as Congressmen in bed with the establishment while selling the populists a complete fairytale?

    The founders seemed to think danger could come from rabble rising up, not from bankers filleting the rabble like so many fish.

    This is what Rep. Mike Capuano (D-Mass) had to say about the bill in his newsletter today (bolding is mine)

    Wrong CHOICE Act

    Yesterday the House completed consideration of H.R. 10, the Financial CHOICE Act of 2017, which repeals the most important provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This legislation became law after the 2008 financial crisis to protect the U.S. economy from another worldwide financial collapse that facilitated the worst recession since the Great Depression. H.R. 10, or the Wrong CHOICE Act, deregulates the largest financial institutions in the world, makes it harder for state and federal regulators to pursue bad actors, and brings back the Wild West environment that Wall Street enjoyed before the 2008 financial crisis.

    I have many, many problems with this bill. It destroys the Consumer Financial Protection Bureau (CFPB) which has recovered billions of dollars for consumers harmed by fraudulent mortgage servicing, student loans, payday lending, discriminatory auto lending, and abusive debt collection practices. To date, almost 30 million consumers have been assisted by the CFPB. H.R. 10 eliminates almost all of the CFPB’s authority to oversee financial institutions, ends the independent funding process for the CFPB and gives the President the authority to fire the CFPB Director any time he wants and for any reason.

    H.R. 10 repeals the Volcker rule which exists to prevent commercial banks from gambling with federally insured deposits. It weakens the Financial Stability Oversight Council (FSOC) which was established to help identify and manage financial risks so they do not destabilize the economy. It weakens the Securities and Exchange Commission (SEC) by watering down rules relating to credit rating agencies and shareholder rights. It repeals the Department of Labor's fiduciary duty rule, which simply requires people who hold themselves out as financial advisors to act in their client's best interests.

    Instead of heeding the lessons of the 2008 financial crisis, the Wrong CHOICE Act would take us back to its darkest days. It is opposed by dozens of advocacy groups, from the Veterans of Foreign Wars and the National Fair Housing Alliance to the Consumer Federation of America and the AARP. I spoke on the floor about H.R. 10.
    Now what I want to know is how many of the left-behind variety of Trump followers are actually keyed in today on what the House did "for" them yesterday afternoon. Heh, I am sure they would not think to thank their lucky stars there aren't 8 Democrats willing to cross the aisle and make this GOP dream into an American nightmare.

    I guess the Democratic Party leaders, to abuse a word, figure as long as the vote counts look steady in the Senate on stuff that needs 60 votes, they don't have to get out there and message "the deplorables"... they can just let the WaPo, NYT, Bloomberg run pieces about House passage and likely Senate defeat, to keep up the interest of the better-heeled leftie voters who make political contributions.

    To me, this kind of thinking and lack of message tailoring is a big chunk of why the Democrats lost the elections. The other problem is that in piecemeal approach to passing aspects of the HR 10 effort later on, not all of those will require more than 51 Senate votes. If the Dems are still sitting around gawking at Trump's tweets about whatever by then, progressives will be storming the offices of the the damn DNC.

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