Republicans Impede Financial Reform

Given the disastrous failure of the American financial system one would think that elected leaders would be diligent in implementing safeguards to prevent a future melt down. One would be wrong if they are thinking about Republicans in the United States Senate.

President Obama is sending Richard Cordray, former Ohio Attorney General, to the Senate for confirmation as the first director of the Consumer Financial Protection Bureau.

The Bureau was established as part of the Dodd-Frank financial reform bill and has the responsibility of ensuring that banks comply with the law and regulations. It, however, cannot exercise its power until a director is appointed and confirmed… and there is the rub.

Republicans were not successful in completely gutting Dodd-Frank in the last session of Congress, so they are now working to defang it. Forty-four of them have said they will block the confirmation of any director until the Bureau’s powers are significantly reduced.

This disregard of consumer interest in favor of their banking constituents is part of a Republican campaign to return to the unregulated days that led to the collapse. They are also blocking a dozen other confirmations of key staff regulatory agencies, including the Federal Deposit Insurance Corporation, the Office of the Comptroller of Currency, and two members of the Securities and Exchange Commission (SEC) board.

The House Appropriations committee also took a swipe at the SEC by cutting $200 million from its budget. Did they do this in the name of fiscal responsibility, in the name of trimming the deficit: No! The SEC is not funded from taxpayer revenues, and thus does not impact the federal deficit. In fact, it actually contributes hundreds of millions of dollars to the treasury (in addition to restoring billions— $2.2 billion last year) to victims of financial fraud.

The reason for the cut is simply right-wing dogma: undercut any regulation on private business.

Putting the Cards on the Table

Mitch McConnell, the Republican leader in the Senate, gave insight into what is really motivating him in the debt-limit fight. He warned his colleagues that a default would hurt the Republican “brand” and help President Obama.

He didn’t express his concern for making payroll for our soldiers, sailors, Marines, and airman; nor for the poor, frail or elderly who would lose life-saving support; nor for those who faithfully contributed through their working lives to Social Security and Medicare. No, his only concern was for the Republican “brand”.

Where Are the Jobs?

One Republican mantra throughout the 2010 election campaign was “jobs, jobs, jobs.” So how many “jobs” bills have passed out of the Republican-controlled House of Representatives? None!

In both the House and the Senate they have blocked every Democratic attempt to fuel the economy, from extending the payroll tax holiday, to public works projects and trade agreements.

Why are they taking this tack?  For two reasons: Kill government, and pass nothing that might reflect positively on President Obama. Their primary goal seems to be keeping the economy down, making sure that government can’t function, and blaming  Obama for their mess.