The GOP in the House is, as usual, looking to make Trump’s presidency seem more legitimate by turning their attention to another piece of legislation that has in effect, put weights on the momentum of our economy in making rich people richer than they already are. The proposed Financial Choice Act (FCA) would provide banks with regulatory relief provided they meet a strict basic requirement for the capital they obtain to cover unexpected losses in the future. The bill goes further in removing Federal regulators the power to dismantle failing financial firms that are on the brink of collapse, selling off their pieces, to avoid a complete collapse of the firm that would send ripples through the financial system. Who remembers Lehman Brothers?
Republicans view the Dodd-Frank regulations as costly compliance for financial companies making it harder to lend money and spur economic growth. Trump calls the law a “disaster”.
When NET profit margins for these so-called financial companies is in the hundreds of billions year over year, it is hard to understand the out of touch view the Republicans have when they say its hard for these companies to lend and assist with economic growth. The truth seems to be that they’re all too quickly paying off their lobbies and silent investors leaving very little for them to actually lend and support the economy that 99% of the country is living in. Removal of the Dodd-Frank laws would only serve to accelerate the pace of money transferred to a small group of wealthy elite. In all honesty, Dodd-Frank would have never been required if Glass-Steagall wasn’t repealed in the late 90’s. It was a highly effective bill that served to keep toxic financial services from mixing and, as we found out the hard way, blow up in our faces in 2008.
This is the Republican plan to reform Wall Street and revitalize Main Street – all while protecting the financial futures of Americans. – Speaker Paul Ryan, R-Wis
While Dodd-Frank had teeth connected to agencies that weren’t directly tied to Congress, the FCA has been given filed down dentures that don’t really fit well. Normal Americans, still suffering from the wake of the 2008-09 financial crisis, need to understand what the FCA is doing for them compared to what the FCA is doing for the financial industry. The very same financial industry that received government bail-outs, paid enormous sums of money to cover contractual golden parachutes, while at the same time foreclosing on homeowners and converting the entire credit industry to variable interest rates.
Who’s interests do you think financial companies, and their congressional puppets, are protecting?
It certainly isn’t the normal American.