Don’t let Trump Republicans gut Wall Street reform
With a puppet of the big banks in the White House and an administration full of Goldman Sachs alums, House Republicans are taking another run at shredding Wall Street reform.
The House has been deliberating on the Financial Choice Act 2.0, a nearly 600-page package that would undermine Sen. Warren’s consumer protection agency, slash the oversight of the biggest financial institutions and repeal the Volcker rule blocking banks from gambling with taxpayer-insured deposits — all essential reforms that CREDO members fought to make a reality.
This new bill is so extreme that it goes “further even than [financial] industry officials had hoped.” We need to make sure Democrats resist this bill in the House and do all they can to block it completely in the Senate.
Trump Republicans in Congress have spent recent years laser-focused on helping big banks. This new bill is a more-radical version of plans that Republicans introduced in prior years, including one package that our friends at Americans for Financial Reform called “a major rollback of financial reform.” The new Wall Street handout would:
- Undermine Sen. Warren’s consumer protection agency, the Consumer Financial Protection Bureau, by replacing its strong director, limiting its funding and putting new restrictions on rules it issues to protect the public.
- Dismantle a half-century of financial rules by allowing banks that hold a certain amount of capital to bypass financial regulations that go back to least the 1950’s, leaving us even more at-risk of a massive crash than we were before 2008.
- Eliminate the Volcker rule that stops banks from gambling with taxpayer-insured deposits, a straightforward bipartisan protection that says that banks that are backed by the taxpayers cannot make risky speculative trades to drive up profits.
In years past, corporate Democrats have sat down with Republicans to team up on helping big banks. Already this year, Democratic Sen. Heidi Heitkamp admitted to meeting with bank lobbyists about the consumer protection agency, and others — like Sens. Jon Tester and Joe Manchin — refused to say whether they had as well. We need to make it clear once again that Democrats must oppose and resist any attacks on Wall Street reform.
This giveaway goes beyond what even big banks have hoped for. And it ultimately amounts to a wolf in sheep’s clothing: Under the guise of forcing banks to hold on to more cash in case of emergencies — a good idea — it allows Wall Street to escape decades’ worth of financial regulation.
No Democrat should spend a split second considering supporting these changes. Nor should they attempt to negotiate with Republicans who have made their true agenda so clear. We need to show Democrats that no amount of arm-twisting from Wall Street lobbyists can change this simple fact: Rolling back Wall Street reform is simply unacceptable.
Originally published at act.credoaction.com.