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Warren writes: "Let's be clear: Banks of all sizes are making record profits right now. And if that wasn't enough, the Republican tax bill just gave away billions to the big banks. They are swimming in money. There is no reason at all to roll back the rules on these big banks so they can pad their pockets even more - and cut them loose to take on wild risks again."

Sen. Elizabeth Warren. (photo: Getty)
Sen. Elizabeth Warren. (photo: Getty)


Republicans AND Democrats Are Gutting the Rules on Wall Street

By Elizabeth Warren, Reader Supported News

21 February 18

 

n 2008, Wall Street’s reckless greed crashed our economy.

While millions of hard-working people lost their jobs, their homes, and their life savings, the big banks got a $700 billion no-strings-attached bailout from the American taxpayers. A bailout and nobody went to jail for causing the worst financial crisis since the Great Depression.

After the crash, Congress passed legislation called Dodd-Frank, which put new rules in place for the biggest financial institutions to stop another crisis and taxpayer bailout.

But now, less than a decade later, Senate Republicans – and some Senate Democrats – are getting ready to gut a lot of those rules for some of the country’s biggest banks. The bank lobbyists have been hitting Capitol Hill hard, and they have a Dodd-Frank rollback bill lined up with the support of every Republican and twelve Democrats.

We need to make some noise about this big wet kiss to the big banks by reminding Senators as loudly as possible: they work for the American people, not for big bank lobbyists. Sign our urgent petition right now to tell the Senate not to weaken the rules on big banks.

Dodd-Frank said that every bank with more than $50 billion in assets – that’s roughly the 40 biggest banks, or the top 0.5% of all banks by size – would have tougher rules than smaller banks. That means mandatory stress tests to analyze how they would react to another financial crisis and plans for how they would break apart, sell off assets, and liquidate in bankruptcy if they started to fail.

There’s a reason for this common-sense oversight of big banks: They are so big that they could potentially bring down the whole economy again if they failed and taxpayers didn’t bail them out again.

The bill that could be up in the Senate in the next few weeks would let almost 30 of the 40 biggest banks in the country could go back to looser rules like the ones that let them run wild before the 2008 crisis.

What could possibly go wrong?!?

The big bank lobbyists want you to believe that this bill is protecting poor little mom and pop banks from getting buried under red tape. But this bill is aimed at helping the big guys. These 30 banks got nearly $50 billion in taxpayer bailouts during the 2008 crisis.

And remember Countrywide? It was at the heart of the financial crisis. At its peak, Countrywide was financing one out of every five mortgages in the country. It was a major player in blowing up the economy. You know how big Countrywide was when it was leading the toxic mortgages that blew up our economy? About $200 billion – smaller than some of the banks that would be turned loose by this bill.

Let’s be clear: Banks of all sizes are making record profits right now. And if that wasn’t enough, the Republican tax bill just gave away billions to the big banks. They are swimming in money. There is no reason at all to roll back the rules on these big banks so they can pad their pockets even more – and cut them loose to take on wild risks again.

The American people – Democrats, Republicans, and Independents – want tougher rules on big banks, not weaker ones. It’s time to hold Republican AND Democratic Senators who support this bill accountable for siding with their big bank donors instead of working families.

I get it: Wall Street has money and power. But there are a lot more of us than there are of them. The only way to slow down this Bank Lobbyist Act is if we speak out and fight back. Sign our petition to protect Dodd-Frank and make your voice heard – and ask your friends to sign as well.

The big banks will do anything they can to pass this dangerous bill into law. We need you out there giving everything you’ve got.

Thanks for being a part of this,

Elizabeth


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Comments   

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+21 # Rodion Raskolnikov 2018-02-21 15:09
Thanks for this. Ringing the alarm is the right thing to do. Elections are coming up in November and we need a list of everyone who votes to loosen the rules on the biggest banks. They are deeply in debt with failed investments just like they were in 2008. And they are desperate unload these bad investments. I seriously doubt any of them would pass an authentic stress test.

Dodd-Frank did very little to fix the problems of 2008. It did not outlaw derivatives and all manner of exotic investments that are essentially gambling or ponzi schemes. There is little doubt that we are heading for another 2008 very soon.
 
 
+16 # jlarson 2018-02-22 00:47
At the first hint of another 2008 (or worse): NATIONALIZE THE BANKS. Capture their assets for the American people and give institutions that deserve help just enough to survive but not profit for X years. Second thing: prosecute corruption in the financial sector to the fullest extent of the law and don't hold back. No more allowing guilty institutions to pay fines while refusing to admit guilt. Those individuals convicted of felonies should be sentenced to long prison terms as well as fines and perform perp walks for the moral instruction of their peers.
 
 
+16 # harleysch 2018-02-22 04:41
While this is an important wake up call, I'm afraid it doesn't go far enough. As Sen. Warren knows, Dodd-Frank was a bad bill, as it gave the big banks too many loopholes, while giving derivative and swap dealers the power to write the rules regulating their activity. As a result, NOTHING was done to curtail the wild speculation, based on "financial innovation", which has created trillions of dollars of more unsustainable obligations on the books of Too Big to Fail banks.

What this means is that when the next crash comes -- and it could be soon -- the speculators will again be expecting a bailout, combined with a bail-in, i.e., grabbing depositors money. The bail-in provision is in the Dodd Frank bill.

Sen. Warren is a cosponsor of a bill to restore Glass Steagall banking separation, which would be an excellent start to restoring real regulation. It would mean the speculators will have to eat their losses when the bubble pops, not be bailed out by tax payers and those whose money they (mis)manage.

The solution:
1. Pass Glass Steagall bill, which has more than 70 sponsors in the House and 12 in the Senate;
2. Repeal Dodd Frank, as a new Glass Steagall would make it unnecessary;
3. Begin criminal prosecutions, which were prevented by President Obama and Eric Holder.
 
 
+10 # laborequalswealth 2018-02-22 19:44
Up vote you 100 times if I could! Exactly on target.

REINSTATE GLASS-STEAGALL. After all, it only worked for about SEVENTY YEARS!
 
 
+3 # Robbee 2018-02-23 13:38
Quoting harleysch:

The solution:
1. Pass Glass Steagall bill, which has more than 70 sponsors in the House and 12 in the Senate;
2. Repeal Dodd Frank, as a new Glass Steagall would make it unnecessary;
3. Begin criminal prosecutions, which were prevented by President Obama and Eric Holder.

- #3 why not petition dickhead to prosecute banksters?

- #4 in the meanwhile, why not sign warren's petition? i did!
 
 
+12 # RLF 2018-02-22 06:54
Names of Democrats please. Sen. Warren...give us the traitor's names...and I can bet that my senators names...Schumer and Gillibrand are among them. NY Dems have been in banking pockets forever.
 
 
+11 # relegn 2018-02-22 07:04
Common-sense oversight of big banks is fine and needed however breaking up big banks and limiting the future size of banks is better.
 
 
+11 # bread and butter 2018-02-22 09:38
Uh Oh! Somebody is rocking the boat again!

Could it be that the DNC has TWO potential presidential candidates to silence, ridicule, and sabotage this time?

I just hope Sanders and Warren work together, in whatever capacity, so they don't split our votes within the party.

We'll need to speak with as much of a unified voice as possible, to compete with the corruption and shenanigans they're sure to pull again in 2020.

Here's hoping the DNC hates Trump more than they hate Sanders and Warren!

Otherwise, get used to Trump (or Pence).

P.S. I'm still not voting for Biden, or any of the other clown car of corporate shills they plan to dazzle us with.
 
 
+5 # librarian1984 2018-02-22 21:54
Agree 100%. Well said!

Does the DNC hate Trump more than they hate Sanders?
 
 
+3 # DongiC 2018-02-23 09:52
Simple, Glass - Steagall and meanningful financial reform or we walk. Right out of the Democratic Party and into the Progressive Party. It's about time to make that move anyway.
 

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