We need to talk about Donald – the Nightmare continues

[DRSB]

Trump and Ryan to release banks from oversight
http://www.esquire.com/news-politics/po ... ll-street/

I thought Hillary was the friend of banks!

[Hermit]

Trump and Ryan to release banks from oversight
http://www.esquire.com/news-politics/po ... ll-street/

I thought Hillary was the friend of banks!

Let's wait for Forty Two to explain this to us. I expect it will turn out to be a cunning way of draining the swamp.

[pErvinalia]

He is. By cutting regulations and whatnot on banks he reduces the need for bank lobbyists and political insurgents in Washington. He's really very clever. High IQ. So high.

[Brian Peacock]

The covfefe is strong in him.

[rainbow]

The covfefe is strong in him.

[Forty Two]

It's not as simple as "Dodd Frank good - Choice Act bad - ugh."

One, the Dodd Frank Act hasn't served it's purpose. It was supposed to toughen up on the big banks, when in reality is served the big banks at the expense of small banks. Since Dodd Frank, the larger banks have gotten larger and there are fewer and fewer smaller banks around.

Dodd Frank provided for taxpayer funded bailouts of big banks. The new law would eliminate that. That's a good thing. Dodd Frank set up a taxpayer funded bailout pool. Good riddance. Section II of the Choice Act would "End “Too Big to Fail” and Bank Bailouts." https://financialservices.house.gov/upl ... ummary.pdf

In order to be allowed to avoid heightened regulatory requirements, the CHOICE ACT requires a bank to demonstrate that it is financially secure and significantly better capitalized than that which is required under Dodd Frank. The Financial Choice Act will "Provide an “off-ramp” from the post-Dodd-Frank supervisory regime and Basel III capital and liquidity standards for banking organizations that choose to maintain high levels of capital. Any banking organization that makes a qualifying capital election but fails to maintain the specified non-risk weighted leverage ratio will lose its regulatory relief." https://financialservices.house.gov/upl ... ummary.pdf

Increased penalties on wall street firms for fraud and deceptive practices - the new act would "Demand accountability from Wall Street through enhanced penalties for
fraud and deception."

Regarding the Consumer Finance Protection Board - the reforms are needed - and the new act would "Replace the current single director with a bipartisan, five-member commission which is
subject to congressional oversight and appropriations."

The CFPB was a strange creature when created by the likes of Pocahontas Warren. Its purpose was glossed over by the media because all they report is that it's some sort of agency designed to protect the public, therefore it must be good. A court of appeals, however, held that it was unconstitutional because the director has wide-ranging power with little oversight. The court found that the arrangement “represents a gross departure from settled historical practice” of having multi-member commissions at independent agencies to keep them in check. “The CFPB is the first of its kind and a historical anomaly,” wrote Judge Brett Kavanaugh in the court’s 110-page opinion. “In short, when measured in terms of unilateral power, the Director of the CFPB is the single most powerful official in the entire U.S. Government, other than the President. Indeed, within his jurisdiction, the Director of the CFPB can be considered even more powerful than the President.” In its ruling, the court argued that the federal government had never before seen an agency like the CFPB, which has broad powers over all of consumer finance but is run by a single director who does not answer to the president. The court argued that such an arrangement flouts the Constitution’s separations of powers and poses a risk to individual liberty.
https://www.cadc.uscourts.gov/internet/ ... 640101.pdf

So, I have a House Finance Committee summary of the bill's provisions, there, and the text of the US Court of Appeals' opinion, but the new bill was snarkily criticized and mocked in a paragraph within a highly partisan opinion piece in "Esquire" magazine. So....

[Tero]

Banks allowed to rip you off and gamble with your money again and get bailed out by Evil Federal Guvment:

House Republicans voted Thursday to deliver on their promise to repeal Dodd-Frank — the massive set of Wall Street regulations President Barack Obama signed into law after the 2008 financial crisis.

In a near party-line vote, the House approved a bill, dubbed the Financial Choice Act, , which scales back or eliminates many of the post-crisis banking rules.

The legislation is the brainchild of House Financial Services Committee Chairman Jeb Hensarling, R-Texas.

"Dodd-Frank represents the greatest regulatory burden on our economy, more so than all the other Obama-era regulations combined," Hensarling told reporters Wednesday. "There is a better way: economic growth for all; bank bailouts for none."
http://www.npr.org/2017/06/08/532036374 ... egulations

[Tero]

James fucking Comey cleared Trump!
http://karireport.blogspot.com/2017/06/ ... trump.html

[pErvinalia]

I love how Trump thinks he was vindicated or something. The (former) top cop in the country called him a liar and said that he didn't trust him. Only in Trump's Merka could that be seen as anything other than a massive controversy.

[Forty Two]

Banks allowed to rip you off and gamble with your money again and get bailed out by Evil Federal Guvment:

House Republicans voted Thursday to deliver on their promise to repeal Dodd-Frank — the massive set of Wall Street regulations President Barack Obama signed into law after the 2008 financial crisis.

Well, Dodd Frank set up the pool to bail out the banks with our money. So, if you're against bailing out the ripoff banks with our money, then you'd be against Dodd Frank.

In a near party-line vote, the House approved a bill, dubbed the Financial Choice Act, , which scales back or eliminates many of the post-crisis banking rules.

Only for banks that meet heightened capitalization levels. See my link above.

The legislation is the brainchild of House Financial Services Committee Chairman Jeb Hensarling, R-Texas.

"Dodd-Frank represents the greatest regulatory burden on our economy, more so than all the other Obama-era regulations combined," Hensarling told reporters Wednesday. "There is a better way: economic growth for all; bank bailouts for none."
http://www.npr.org/2017/06/08/532036374 ... egulations

Sounds good. Economic growth helps, and bailouts seem to be something we all oppose.

[Forty Two]

I love how Trump thinks he was vindicated or something. The (former) top cop in the country called him a liar and said that he didn't trust him. Only in Trump's Merka could that be seen as anything other than a massive controversy.

As Chris Matthews of MSNBC noted, Trump was definitely vindicated on the issue of Russia collusion. Major media outlets, including the New York Times, CNN etc. had to issue corrections to their previously published stories because Comey revealed that their sources were wrong. Comey said the New York Times story which broke the Russia-collusion narrative was "wrong."

Also, Comey affirmed that Trump was correct that Comey had assured him that he, Trump, was not under investigation. Comey testified to that three times yesterday.

That's some solid vindication, actually.

[Tero]

The bail outs will end up in the post Trump era. They always happen, whether law dictates it or not. 4 more years of risky banking guarantees it. Financial derivatives are crap.

[pErvinalia]

I love how Trump thinks he was vindicated or something. The (former) top cop in the country called him a liar and said that he didn't trust him. Only in Trump's Merka could that be seen as anything other than a massive controversy.

As Chris Matthews of MSNBC noted, Trump was definitely vindicated on the issue of Russia collusion. Major media outlets, including the New York Times, CNN etc. had to issue corrections to their previously published stories because Comey revealed that their sources were wrong. Comey said the New York Times story which broke the Russia-collusion narrative was "wrong."

Also, Comey affirmed that Trump was correct that Comey had assured him that he, Trump, was not under investigation. Comey testified to that three times yesterday.

That's some solid vindication, actually.

Your top cop called your president a liar and untrustworthy, and hinted at serious investigation into (and concern about) several members of Trump's team. In any normal country this would be a massive scandal. Because it's Trump, and everyone already knows he's a liar and untrustworthy, it's just another day in his presidency. What a sad fucking state your democracy has descended too.

[Forty Two]

The bail outs will end up in the post Trump era. They always happen, whether law dictates it or not. 4 more years of risky banking guarantees it. Financial derivatives are crap.

https://www.nytimes.com/roomfordebate/2 ... nity-banks

With more than 22,000 pages of regulations, the destabilizing consequences of the Dodd-Frank Wall Street Reform and Consumer Protection Act are numerous. One notable concern is that the law has forced consolidation of the United States banking system. The number of community banks (those with less than $10 billion in assets) shrank 14 percent between Dodd-Frank’s passage in 2010 and late 2014. Surely, consolidation is driven by many factors, some of which are good. It is also no recent trend, but neither is regulatory growth: between 1997 and 2008, banking regulations grew 18 percent.

When regulations – not consumers – drive consolidation, banking system risk increases. Dodd-Frank’s “Wall Street” focus snares community banks in an increasingly complex web of rules designed for larger banks. As such, the law forces well-managed institutions to unnecessarily divert resources to compliance (survey data shows community banks are doing just that), or worse, to close their doors. Minneapolis Fed research suggests that adding just two members to the compliance department would make a third of the smallest banks unprofitable.

As the Bank of England’s Andrew Haldane accurately noted in 2012, regulatory simplicity is key to combating risks brought about by increasing financial system complexity. By adding massive layers of rules atop an already convoluted U.S. bank regulatory framework, Dodd-Frank inherently drives consolidation. A costly web of uncoordinated bank regulations crafted around past financial crises distracts U.S. banks from designing and implementing more effective firm-tailored risk management strategies. Simplifying U.S. bank regulation is critical to reducing financial system risk.

[Tero]

Nice propaganda. Banks are just banks. They don't drive the economy.