The GOP’s (Quiet) Wall Street Reg Rollback

March 17th, 2011 at 11:37 am | 9 Comments |

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Republicans’ efforts to change the Dodd-Frank financial reform legislation should  offer the party a model for how it should deal with President Obama’s healthcare bill: rather than impractical, unworkable political grandstanding, House Republicans are offering real, substantive, and, yes, wonky, measures to fix what’s wrong with the bill.

Like the healthcare bill, Dodd-Frank attempts to confront some real problems but has serious flaws in its execution. Furthermore, as with healthcare, Congress “punted” on most specifics and has asked regulators to develop them. Unlike healthcare—where Democrats rammed their own preferred solutions down Republicans (and the nation’s) throat—perhaps 70 percent of the broad policies in Dodd-Frank represent common ground consensus measures. (The only person I have met that actually has promised to campaign for outright repeal of the bill is a Tea Party leader who also told me that the Federal Reserve is a private company owned by the Swiss. Oh.)

Thus, the legislative package Republicans are moving forward takes a serious look at the bill and aims to change its bad parts rather than taking a sledgehammer to it. Although some provisions that Republicans favor—the elimination of new credit card rules that simply transfer wealth from banks to merchants, repeal of burdensome data collection requirements—make a lot of sense, others (outright repeal of new derivatives rules) would probably cause more problems than they would solve.

Still, the overall approach of examining the law and trying to fix what’s wrong with it is a welcome move. It shows that House Republicans can, if prompted, actually get serious about governing.


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9 Comments so far ↓

  • SFTor1

    Who could be better suited for the job of putting Wall Street to rights than the Republicans? Who has a better track record over the previous eight years of Republican bicameral and administrative authority? A more conscientious and thoughtful approach? Who has better results?

    Yes, the nation trusts the Republicans to fix Wall Street.

  • rbottoms

    Jobs, jobs, jobs Real Soon Now ™

  • hisgirlfriday

    (outright repeal of new derivatives rules) would probably cause more problems than they would solve.

    You make this admission and yet this is what you call being “serious about governing”?

  • valkayec

    Just as major recipients of financial services donations here in the U.S. are working to defang regulations, allowing Wall St and others to go right back to unfettered gambling and putting the entire country at risk again, Europe is arguing tighter regulations. Specifically, too big to fail and increasing capital requirements. It seems Europe, especially England, may end up being more responsible than the U.S. Congress.

    http://baselinescenario.com/2011/03/10/battle-of-the-banking-policy-heavyweights/

    Everyone who studied the financial crash knows that solid regulations are needed to control the “casino” aspects of the financial market as well as to provide more transparency to trading of derivatives and more oversight of what traders are actually doing. Yet, those legislators who have received the most from the financial services industries want to roll back regulations, which meek though they are just might help to curb some of the worst excesses.

    Whose side are these legislators on: the side of the TBTF banks and hedge funds or the side of the American people? After the loss of several trillion dollars to our economy and the havoc created in ordinary people’s lives, these rollbacks, including the obvious attacks on the CFPA and Elizabeth Warren, are antithetical to the health and welfare of the American people, our businesses, and our economy.

    Everyone who was angry over the passage of TARP should be up in arms over the attempts at rolling back the mild (even weak) regulations just passed. Anyone who doesn’t understand that Wall St, et al, are working on the implicit perception of another taxpayer bailout should another bank crash occur is fooling themselves. There isn’t enough money in the world to fix the next big crash. If anything, the regulations need to be strenghtened, specifically to end TBTF and change the culture of Wall St.

  • Gus

    Whose side are these legislators on: the side of the TBTF banks and hedge funds or the side of the American people
    Isn’t the answer obvious? Who pays for their re-election campaigns?

  • ZigZag

    This just in:

    Fox Working Within the Framework of Farm Security Law to Improve Guarding of Henhouse.

    Take money out of politics.

  • jamesj

    “…rammed their own preferred solutions down Republicans (and the nation’s) throat”

    What is the obsession with right wing commentators and their fear of having things rammed down their throats? Very telling.

  • NRA Liberal

    “..Unlike healthcare—where Democrats rammed their own preferred solutions down Republicans (and the nation’s) throat…”

    This is a god damned lie.

    The unpopular aspects of that bill were based on a Heritage Foundation plan.