Republicans Side With Wall Street

The GOP has always been the Party of rich people and Big Business.  It has been for decades and yesterday and today they proved their bona fides by voting for Wall Street over Main Street.  The Party which repealed Glass-Steagall and refused to regulate Wall Street’s giant gambles with derivatives and other exotic financial instruments meant to poison the financial sector with toxic assets they then allowed these huge bankers unfettered opportunities to bet against their own handiwork and profit yet again.  The Republican ideology of pure free markets and laissez faire resulted in the worst global economic meltdown since the Great Depression.  Only immediate action by Presidents Bush (TARP) and Obama (ARRA) saved us from another Great Depression.

This week the Senate is attempting to enact a decent bill aimed at reforming the markets.  Though not as strong as I’d hoped it has been crafted over more than a year and includes some significant features:

·    End Taxpayer Bailouts.  As long as giant financial firms believe the government will bail them out if they get into trouble, they only have the incentive to get larger and take bigger risks.  This bill guarantees that taxpayers will never again be forced to bail out reckless Wall Street firms by creating a safe orderly liquidation mechanism for the FDIC to unwind failing significant financial companies; shareholders and unsecured creditors will bear losses; and management will be removed.

·    End “Too Big To Fail.”  The bill provides for strict new capital, leverage, liquidity, risk management and other requirements as companies grow in size and complexity, with significant requirements on companies that pose risks to the financial system. The Federal Reserve will be authorized, as a last resort, to require a large complex company, to divest some of its holdings if it poses a grave threat to the financial stability of the United States.

·    Put a New Cop on The Beat.  The bill establishes the Financial Stability Oversight Council to focus on identifying, monitoring and addressing systemic risks posed by large, complex financial firms as well as products and activities that spread risk across firms.

·    Bring Sunlight and Transparency to Shadowy Markets.  The legislation eliminates loopholes that allow risky and abusive practices to go unnoticed and unregulated – including loopholes for over-the-counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

·    Guarantee Clear Information in Plain English.  The bill creates the Consumer Financial Protection Bureau, which will have the sole job of protecting American consumers from unfair, deceptive and abusive financial products and practices and will ensure people get the clear information they need on loans and other financial products from credit card companies, mortgage brokers, banks and others.

·    Protect Against Bernie Madoff-Type Scams.  The SEC has failed to perform aggressive oversight and is unable to understand some of the very companies it is supposed to regulate.  This bill creates a program within the SEC to encourage people to report securities violations and mandates an annual assessment of the SEC’s internal supervisory controls.  The bill also establishes a new Office of Credit Rating Agencies at the SEC to strengthen regulation of credit rating agencies, many of which failed in the past to warn people about risks hidden throughout layers of complex structures.

Every single Republican Senator voted against this bill and they were joined by Democrat Ben Nelson who is again trying to extort the American people into helping his state above all others.  Nelson may now be the biggest whore on the planet.  Unfortunately it is the American people he is screwing.  The financial sector has been pouring cash into Republican coffers and have flooded Washington with lobbyists.  There are now five lobbyists for every Member of Congress.

We know what side Republicans are on and Sen. Bob Casey reminds us in case we’ve forgotten:

4 thoughts on “Republicans Side With Wall Street”

  1. Nelson’s inexplicable and unjustifiable abandonment of Wall Street Reform undercuts, to some degree, the Dems argument that the Republicans alone are standing on the side of Wall Street against the good of ordinary Americans on Main Street. Harry Reid is such a wimp or so ineffective that he can’t hold his own members on important votes. I don’t believe for one second that Nelson’s position is a principled one. Reid should be able to make it more beneficial for Nelson to side with the Dems than to side with Wall Street.

  2. The world’s “greatest deliberative body” — the U.S. Senate — just agreed to deliberate. Wow!

    That’s what the Rs filibuster was — to prevent a deliberative body from deliberating. They unanimously, stubbornly, absurdly, and hopefully self-defeatingly voted 3 times in 3 days this week to refuse to BEGIN debate on legislation to restrain the modern robber barons of Wall Street.

    Harry Reid, who suddenly discovered where he had misplaced his testicles, threatened — merely threatened — to make the Rs filbutser all night long and they backed down. For almost three and a half yaers, since the Dems became the majority party in the Senate, voters, pundits and bloggers have told Harry again and again that he should force the Rs to conduct an actual — not merely a virtual — filibuster. But he wimped out time and again.

    How much else could have been accomplished if Sen. Wimp from Nevada had acted as if he was the Majority LEADER? And what’s with the rest of the Dems not electing someone with the courage and skills to be a real leader to replace Reid as thier leader in the Senate?

  3. Protect against bernie madoff type scams?

    Social Security is the largest ponzi scheme going…it makes what Bernie did look like two kids trading baseballs cards at recess in comparison…and you want the folks who bankrupted that program in charge too??

    Fannie and Freddie wrecked the economy (franklin raines should be in testifying and barney frank should be in jail for their fiscal malfeasance) and you want them in charge of wall street???   why does the analogy of the fox and the hen house come to mind

    clean up the waste, fraud, abuse, criminality and general piss poor leadership in DC first…build a track record of something other than corruption…then MAYBE talk to us about doing something else

    Are you fn kidding me!!?!?!?!?

    have a great day :)

  4. So barry says “I do think at a certain point, you’ve made enough money”

    Ok fine.  Let’s regulate wall street.

    but since barry himself pulled in a cool $5+ million last year and no one seems to think that was an issue…we shouldnt get involved when a CEO makes that much.

    Franklin Raines when he was running Fannie pulled in over 90 millions (52 of which was based on bonuses he got due to fraulent earnings, but i digress) and barry seems to have no issue with that.  So we dont get involved when CEO’s make 90 million.

    Who are we going after again?

    have a great day :)

Leave a Reply

Your email address will not be published. Required fields are marked *