Herochat

Senate Democrats aid GOP in Forcing Through More Bank Deregulation

Imperial

  • Was once the Greatest of All Time
  • ******
  • 2658
  • +10/-2
    • View Profile
As if the below is not bad enough by itself,

http://money.cnn.com/2018/03/14/news/economy/senate-banking-bill-summary/index.html

Two large custody banks, State Street and Bank of New York Mellon, would also be spared from a rule that forces them to hold millions of dollars of capital to protect against losses.

Citigroup and other lenders have been lobbying lawmakers to broaden the exemption to win a break for themselves, too.

Although the bill doesn't offer big Wall Street banks relief, the Congressional Budget Office last week estimated there's a 50% chance that the Fed will relax the rule for Citigroup and JPMorgan after lawmakers pass the bill.
                                                                                                                                                                     
MAIN ARTICLE :

https://www.usnews.com/opinion/thomas-jefferson-street/articles/2018-03-05/why-are-senate-democrats-backing-the-gops-bank-deregulation-bill

Stop Doing the Banks' Bidding

A bunch of Senate Democrats support a bank deregulation bill that is bad politics and awful policy.

AT A TIME WHEN Democrats at the grassroots level are more fired up and ready to go then they've been in years – spoiling for a fight with President Donald Trump and his cronies in the GOP – a group of Senate Democrats is joining with Republicans to, if you'll believe it, deregulate banks.

Huh?

Yes, instead of taking action on, say, gun control, the Senate this week will likely approve a rollback of the regulations adopted in response to the 2008 financial crisis. About a dozen Democrats are backing the effort, along with nearly every Republican, and the GOP is fishing for even more votes from the blue side of the aisle in the hopes of turning a win into a rout.

Let's be clear: It's no surprise that a government wholly controlled by the GOP wants to reduce bank regulations. But that Democrats are lending them a helping hand is terrible policy and awful politics.

Democrats supporting this thing are making the case that it's for the benefit of small, community banks, which are politically sympathetic and generally not the cause of global financial panics. Don't buy it. While there are some bits of the bill that would reduce reporting requirements for small banks, it also includes big benefits for large financial institutions.

For instance, the bill would increase the amount of assets a bank needs to have in order to qualify for enhanced regulation from the Federal Reserve from $50 billion to $250 billion. This one move would exempt 25 of the nation's 38 biggest banks from stronger supervision. The bill also includes an exemption from capital standards – essentially the amount of money that banks need to have on hand in case things go south – that benefits some big financial firms, and even more are lobbying to be included.

That's just the tip of the iceberg when it comes to the damage this bill would inflict. Read this piece by David Dayen at The Intercept for all the hoary details.

In addition to being very dangerous policy, this is very lousy politics. As senators like Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., have shown, the energy and vitality when it comes to the Democratic base is in preventing financial shenanigans, not encouraging them. Polls bear that sentiment out. There's a reason no one who is considered a top tier 2020 Democratic candidate wants to touch this bank bill with a 100-foot pole.

So what's the deal with the Democrats who have signed on? Some, such as Delaware Sens. Chris Coons and Thomas Carper, are from bank-friendly states, and have local political reasons, I suppose, for doing what they're doing. But most of the rest are simply from places President Donald Trump won in 2016, and seem to be operating under the assumption that they need to display bipartisan bonhomie on something in order to survive their next re-election campaign.

Color me skeptical, though, that voters in Montana, North Dakota or Missouri will be more likely to support Sens. Jon Tester, Heidi Heitkamp or Claire McCaskill because they backed a bank deregulation bill. These are the kinds of places where Sanders ran very well against 2016 Democratic nominee Hillary Clinton, so it's not like Democrats there are clamoring for a pro-corporate candidate who sings Kumbaya with the GOP.

In fact, they're the sort of places where a real populist candidate might do better than the standard-issue, centrist-approved Democrat over whom Washington consultants fawn, if given the chance.

Perhaps a simpler explanation, then, is that backing the bill is just about money. The senators in question have seen a boom in financial industry donations, and while I generally tend to dismiss the popular view of campaign contributions as an explicit quid pro quo for legislative favors, this one sure stinks more than most.

Meanwhile, there are Democratic senators from purple states such as Virginia's Tim Kaine and Mark Warner or Colorado's Michael Bennet for whom backing this bill is simply inexcusable, whatever pablum about community lenders they spew.

For Republicans, deregulating banks is standard operating procedure for which they generally don't pay a political price. It should be a different story on the left. If you live in a state where a Senate Democrat thinks that the world needs fewer rules for big banks, perhaps take a long, hard look at a primary challenger?

Again, proponents will say that the legislation we're discussing here is about freeing community banks from the shackles of government regulation so they can make more loans to Main Street. But a bank with more than $200 billion in assets is not straight out of "It's a Wonderful Life." To reduce the ability for regulators to keep a handle on them is unacceptable, and sets the country on the road to a 2008 redux.

Ten years ago, we learned what happens when the threads of the regulatory system are pulled out a bit at a time. No one should want to relive those dark days. But too many Democrats seem to have memories that are far too short.

Avatar : Scarlett Bordeaux
Sig : Sydney Maler


Imperial

  • Was once the Greatest of All Time
  • ******
  • 2658
  • +10/-2
    • View Profile
Stadium Bank Swindle
« Reply #1 on: March 15, 2018, 03:31:39 PM »
And for more gory details :

https://theintercept.com/2018/03/02/crapo-instead-of-taking-on-gun-control-democrats-are-teaming-with-republicans-for-a-stealth-attack-on-wall-street-reform/

REVENGE OF THE STADIUM BANKS

Instead of Taking on Gun Control, Democrats Are Teaming With Republicans for a Stealth Attack on Wall Street Reform

In MID-JANUARY, Citigroup executives held a conference call with reporters about the bank’s fourth-quarter 2017 earnings. The discussion turned to an obscure congressional bill, S.2155, pitched by its bipartisan supporters mainly as a vehicle to deliver regulatory relief to community banks and, 10 years after the financial crisis, to make needed technical fixes to the landmark Wall Street reform law, Dodd-Frank.

But Citi’s Chief Financial Officer John Gerspach told the trade reporters he thought that some bigger banks — like, say, Citigroup — should get taken care of in the bill as well. He wanted Congress to loosen rules around how the bank could go about lending and investing. ..............
Avatar : Scarlett Bordeaux
Sig : Sydney Maler


Imperial

  • Was once the Greatest of All Time
  • ******
  • 2658
  • +10/-2
    • View Profile
And these are the guilty parties
« Reply #2 on: March 15, 2018, 03:43:27 PM »
The 16 Dems that voted yes include former VP candidate Tim "Big Banks" Kaine btw. Thanks, Hillary.

https://www.pastemagazine.com/articles/2018/03/here-are-the-democrats-who-helped-republicans-dere.html

The 16 Democrats include, perhaps most glaringly, Hillary Clinton’s former running mate and Tim Kaine (VA) and the recently elected senator Doug Jones from Alabama. While many liberals were quick to champion Kaine, the “king of dad jokes,” along with “woke” Doug Jones whose election victory was saved by African Americans, it’s worth noting that neither of them were very liberal to begin with.

Many of the other Democrats voting for the bill are also moderate or come from largely conservative states, and include several women like Maggie Hassan (D-NH), Heidi Heitkamp (D-ND), Claire McCaskill (D-MO), Jeanne Shaheen (D-MI) and Debbie Stabenow (D-MI). The other Democratic senators who voted for the bill include Michael Bennet (D-CO), Tom Carper (D-DE), Christopher Coons (D-DE), Joe Donnelly (D-IN), Joe Manchin (D-WV), Bill Nelson (D-FL), Gary Peters (D-MI), Jon Tester (D-MT) and Mark Warner (D-VA).
« Last Edit: March 29, 2018, 09:34:35 PM by Imperial »
Avatar : Scarlett Bordeaux
Sig : Sydney Maler


AP

  • ********
  • 18207
  • +110/-55
    • View Profile
Re: And these are the guilty parties
« Reply #3 on: March 15, 2018, 05:22:26 PM »
The 16 Dems that voted yest include former VP candidate Tim "Big Banks" Kaine btw. Thanks, Hillary.

https://www.pastemagazine.com/articles/2018/03/here-are-the-democrats-who-helped-republicans-dere.html

The 16 Democrats include, perhaps most glaringly, Hillary Clinton’s former running mate and Tim Kaine (VA) and the recently elected senator Doug Jones from Alabama. While many liberals were quick to champion Kaine, the “king of dad jokes,” along with “woke” Doug Jones whose election victory was saved by African Americans, it’s worth noting that neither of them were very liberal to begin with.

Many of the other Democrats voting for the bill are also moderate or come from largely conservative states, and include several women like Maggie Hassan (D-NH), Heidi Heitkamp (D-ND), Claire McCaskill (D-MO), Jeanne Shaheen (D-MI) and Debbie Stabenow (D-MI). The other Democratic senators who voted for the bill include Michael Bennet (D-CO), Tom Carper (D-DE), Christopher Coons (D-DE), Joe Donnelly (D-IN), Joe Manchin (D-WV), Bill Nelson (D-FL), Gary Peters (D-MI), Jon Tester (D-MT) and Mark Warner (D-VA).


But... but... Russia!

Imperial

  • Was once the Greatest of All Time
  • ******
  • 2658
  • +10/-2
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #4 on: March 15, 2018, 07:57:04 PM »
This may be especially bad for minorities too. Just shows that the corporate Dems are all fluff but no substance on so many things. Both Virginia Senators supported this sham. And both are Dems.

https://www.huffingtonpost.com/entry/democrats-banks-racial-discrimination_us_5a96e489e4b0e6a523042fc8



A Dozen Democrats Want To Help Banks Hide Racial Discrimination In Mortgages

These senators are finding common ground with President Trump............

According to Center for Responsive Politics data, the top three recipients of campaign contributions from commercial banks in the 2018 cycle have been Heitkamp, Donnelly and Tester, in that order. Heitkamp’s $157,000 haul is nearly double what Crapo  ― usually a top target as the committee chair ― brought in. Only Tester made the list of the top 20 Senate recipients of commercial bank cash in the 2016 cycle, suggesting that the bank lobby has been working overtime to get Democratic help this year.
Avatar : Scarlett Bordeaux
Sig : Sydney Maler


LiquidSailor

  • *******
  • 6346
  • +69/-149
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #5 on: March 29, 2018, 05:29:05 PM »
I wrote both my senators, Debbie Stabenow and Gary Peters.

Peters was a bitch and didn't respond.  Debbie did.


Thank you for contacting me about the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) before the Senate. I understand your concerns and share your commitment to keeping strong banking protections in place for consumers, families, and small businesses.

The most important point about this bill is that it does not weaken the regulations and oversight of the Wall Street banks that caused the financial crisis. We cannot forget what our country experienced in the financial crisis, and nowhere else in the country was the impact felt more gravely than in Michigan. For that reason, I understand the strong emotions around any changes to Dodd-Frank, the major Wall Street reform law passed in 2010.

I am a staunch supporter of Dodd-Frank, and through my leadership on the Senate Agriculture Committee, which has jurisdiction over the Commodity Futures Trading Commission, I have been the leader in stopping efforts to change any consumer protections that regulate derivatives and swaps a cornerstone of the Wall Street reform law.

While it's critical that we maintain the strong consumer protections in Dodd-Frank, it's equally important that we fix the unintended consequences of this law that threaten to undermine strong community-based banks and member-driven credit unions. Our credit unions and community banks are vital to communities, small businesses, and families. I am deeply concerned that these community-based institutions are starting to disappear from cities and small towns across Michigan as they are eaten up by bigger banks.

That is why I support this legislation. The bill will cut red tape that prevents our credit unions and community banks from helping more families buy a home or start a business. At the same time, it keeps the regulatory focus on the biggest banks that were at the heart of the financial crisis and frees up regulators to more vigorously enforce our laws against bad actors.

I understand that some of my colleagues do not support any changes to the current law. I do not believe that makes sense for Michigan.

Thank you for taking the time to share your views with me. Your input is important. Please continue to keep me informed about issues of concern to you or your family.

DIGUSTING

LiquidSailor

  • *******
  • 6346
  • +69/-149
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #6 on: March 29, 2018, 05:30:24 PM »
I also received a follow-up




I wanted to follow up with you on the email you sent to share your concerns about the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).

There has been a lot of misinformation and confusion surrounding this bill, particularly that the bill would weaken the Dodd Frank Act, the landmark 2010 banking reform law that I voted for and continue to staunchly support.  Earlier this week, former Rep. Barney Frank, the key author of Dodd Frank, gave an interview in which he addressed those concerns.

“I think there is less here than meets the eye," he told WBUR radio station on Monday. “Two of the major changes in this bill, frankly, I publicly supported in 2013. One is to exempt banks under $10 billion in assets, which we call community banks, from some of the rules, because they have not been the problem.”  He went on to say that for banks between $50 billion and $250 billion, this bill “will give them a better chance at competing with the biggest banks.”

Concerning claims that the bill could fuel another financial crisis, Frank said, “I greatly disagree,” and “I think that is a misreading.” He also said that most of the regulatory rules set in place by Dodd Frank to address the financial crisis remain intact. “They're not weakening the rules about derivatives, they're not weakening the rules on mortgages being packaged into a security.”

Now that the Senate has passed the bill, it moves to the House of Representatives for consideration. I want to restate my firm commitment that if changes are made that undermine consumers, weaken regulations on the Wall Street banks that caused the financial crisis, or in any other way harm Michigan, I will vote no on the final bill.

Thank you again for contacting me. Your input is very important. Please continue to keep me informed about this and other issues of concern to you or your family.





Using Barney Frank's words to try and convince me was not really helpful since he turned out to be a Hillary whore.

DIGUSTING

LiquidSailor

  • *******
  • 6346
  • +69/-149
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #7 on: March 29, 2018, 05:31:28 PM »
In my email, I also asked her why she supported Clinton for President when Sanders won our state.  No response to that.  Nor why I asked why she is supporting Gretchen Whitmer for Governor, when she herself is another Hillary whore who is running against two Sanders progressives.

DIGUSTING

XerxesTWD

  • *****
  • 6538
  • +96/-26
  • You can't park here, buddy. Earth is closed today.
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #8 on: March 29, 2018, 05:57:26 PM »
If you are using the words "Hillary whore" in the email, they probably won't respond.

NeoGreenLantern

  • ********
  • 16131
  • +90/-21
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #9 on: March 29, 2018, 07:07:13 PM »
Yeah probably should have went with Killary. It's more punchy.

LiquidSailor

  • *******
  • 6346
  • +69/-149
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #10 on: March 29, 2018, 10:41:52 PM »
Haha, I assure you my letter was very professional and clean.  I only said nigger once in each.

DIGUSTING

superlurker

  • ***
  • 545
  • +22/-0
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #11 on: March 30, 2018, 03:52:04 PM »
The intern that wrote those replies must be quite a mind-reader to come up with those letters in response to a one-word mail.

LiquidSailor

  • *******
  • 6346
  • +69/-149
    • View Profile
Re: Senate Democrats aid GOP in Forcing Through More Bank Deregulation
« Reply #12 on: March 30, 2018, 11:44:52 PM »
The intern that wrote those replies must be quite a mind-reader to come up with those letters in response to a one-word mail.

I just wonder if they actually pay the interns.  Cause otherwise I see no reason to tow the line on such nonsense.

DIGUSTING