Trumpocalypse Now
Another nail in the coffin of transparency
Oil companies won big in Congress last week with the confirmation of oil tycoon Rex Tillerson and a House vote to dismantle financial transparency. Republicans justified repealing the anti-corruption regulation by focusing on the quantifiable cost of compliance while downplaying the unquantifiable cost of transparency and institutional integrity. Expect the Trump administration and Congress to fall back on this argument as they continue repealing or passing measures to support corporations at the expense of citizens’ rights and welfare.
The Republican-controlled House voted Wednesday to overturn a regulation that was part of the 2010 Dodd-Frank Wall Street reform law and required oil, gas and mining companies to disclose their payments to foreign governments. If the Senate follows the House’s lead, it could send a stark signal to the rest of the world that rooting out corruption is no longer a U.S. government priority, critics say.
Senate Banking Committee Chairman Mike Crapo (R-Idaho) said on the Senate floor Thursday that the SEC’s own research did not show a strong connection between transparency and improving the lives of citizens in countries where mineral extraction revenues fuel government corruption.
“Unlike the potential benefits, though, the costs of this rule are reasonably certain,” he said. “The SEC estimated up to $700 million in initial costs, and up to $590 million on ongoing annual costs.”
