Search This Blog

Wednesday, November 24, 2010

The GOP wages war on the Consumer Financial Protection Bureau

Elizabeth Warren has been a tireless fighter for more protection for consumers from the financial world.  Obama put her in charge of setting up the bureau and finding someone to head the bureau.  Republicans are now claiming that this is unconstitutional.  Obviously it is unconstitutional because Obama did it, but aside from that what the fuck is unconstitutional about it?

Their legal argument is that only the appointed head can do that.  The real reason is that Warren is smart and tenacious and Wall Street is very unhappy about that.  One of the letter writers is Spencer Bachus who will likely take the place of Barney Frank in heading the House Financial Services committee in the next Congress that will be seated in January.   Bachus received $132,200 from the securities and investment industry and $88,800 from commercial banks.  Pissed off consumers didn;t give him any money. 

The GOP has also demanded 'rigorous' oversight of the Consumer agency. At the same time 'rigorous' oversight of the financial services industry is, or any oversight for that matter something the GOP wants to kill entirely. They have already stated their intention to defund the agency once it is set up, especially if Warren is involved in any capacity.

The GOP claim that any restrictions on the banks to invest and create derivatives will "impose substantial costs on the American economy" and "may spark a mass exodus of clients." Bachus also targeted other regulations. "The derivatives provisions in Dodd-Frank alone... as they stand now they're going to take a trillion dollars out of our economy. Think how many jobs that's going to kill,"

Bachus obviously lives in an insulated balloon. Hasn't anyone told him thatour current econimic disaster was vastly exacerbates by turning the housing bubble collapse into a total overleveraged derivative based financial disaster that cost, rather than created billions of jobs. The Dodd-Frank financial reform bill won't ban derivatives but would make them more transparent and will prohibit tax payer guaranteed high risk derivatives from being used to finance them. Something that sane is too much for GOP minds to handle. It's Nazism and Communism all rolled into one.

A far saner person than Bachus, Warren Buffett has called derivatives "financial weapons of mass destruction." As Upton Sinclair famously wrote, "It is difficult to get someone to understand something when his paycheck depends on not understanding it." There are 221,000 thousabd reasons for Bachus to make sure he doesn't understand it.

No comments: