US Treasury releases plan to roll back Dodd-Frank bank regulations
By Gabriel Black
19 June 2017
19 June 2017
Last week,
the US Treasury Department released the first of several reports on the 2010
Dodd-Frank “Wall Street Reform and Consumer Protection Act.” The reports will
guide the Trump administration in rolling back the Obama-era legislation.
The proposed
changes to Dodd-Frank grant the major banks a wishlist of demands to strip out
most of the law’s minimal restrictions on their speculative activities. None of
the top bankers whose fraudulent and in many cases illegal activities triggered
the 2008 financial crash were prosecuted under Obama. Instead of serving long
prison sentences for sending the economy into the worst slump since the 1930s
and stripping tens of millions of people of their life savings, they were
granted even greater control over the US and world economy and allowed to add
billions more to their personal fortunes.
Now, under
Trump, the largely cosmetic reforms instituted under Obama are being removed by
an administration that includes Goldman Sachs alumni in top posts, including
Treasury Secretary Steven Mnuchin, and embodies in its policies and personnel
the American financial oligarchy.
The Dodd-Frank Act was passed amid intense social anger over the
financial crash and multi-trillion-dollar government bailout of the banks. As
the World Socialist Web Site wrote at the time, Dodd-Frank
“was intended to shield the major financial institutions and regulatory
agencies from any substantive change while leading the public to think that the
predatory and illegal practices of Wall Street were being curbed.”
Not only did
the act not break up the big banks or impose limits on their size and power, it
failed to reinstate more serious limits on speculation, such as the 1930s
Glass-Steagall Act, or restrict derivatives trading and other forms of
financial gambling that fueled the 2008 financial collapse.
The major
provisions of the act, such as the requirement for big banks to draw up “living
wills,” the Volcker rule limiting commercial bank proprietary trading, and the
establishment of the Consumer Financial Protection Bureau (CFPB), imposed no
serious limits on the activities of Wall Street. Nevertheless, the financial
elite denounced them as intolerable infringements of its prerogatives and
lobbied furiously against them.
While the
Trump administration is moving to whittle down Dodd-Frank, the Republican
Financial Choice Act, passed by the House of Representatives on June 8, would
entirely repeal Dodd-Frank and allow the biggest banks to effectively avoid any
regulatory oversight if they can show that they have a certain amount of base
capital.
Mnuchin’s
initial recommendations would further water down the Volker Rule, which already
contains sufficient loopholes to permit major banks to continue carrying out
proprietary trading, i.e., using clients’ money to make investments in behalf
of the bank, rather than the clients.
Another
proposal would change how the “living wills” section of Dodd-Frank works,
reducing the frequency and severity of “stress tests” run by the Federal
Deposit Insurance Corporation to ensure that major banks can withstand a new
financial crisis. The biggest banks would be allowed to forego the tests
altogether if they could show that they have a certain amount of unleveraged
capital.
Mnuchin’s
report also advocates changing how the Consumer Financial Protection Bureau is
financed. The CFPB was created for the nominal purpose of helping consumers
challenge fraudulent bank practices. Mnuchin’s proposal would defund the
organization by making it reliant on congressional budget funds, effectively
putting it on the chopping block. At present, it works through the Federal
Reserve Board.
THE SINS OF THE FATHERS: THEIR GLOBAL LOOTING of the
POOR
*
THE OPEN BORDERS PARTY of GEORGE SOROS, HILLARY
& BILLARY CLINTON, BARACK OBAMA and DONALD TRUMP
DONALD TRUMP, HIS PARASITIC FAMILY, HIS GOLDMAN SACHS
REGIME and GOD FATHER, GEORGE SOROS… .global looters of the
poor!
http://mexicanoccupation.blogspot.com/2017/05/the-jared-kushner-donald-trump-george.html
OBAMA-CLINTON-TRUMPERnomics: The
Massive Transfer of Wealth to the Super Rich Ratcheted up!
*
The American oligarchy, steeped in
criminality and parasitism, can produce only a government of war, social
reaction and repression. In its blind avarice, it is creating the conditions
for unprecedented social upheavals. It is hurtling toward its own revolutionary
demise at the hands of the working class.
“Our entire crony capitalist system, Democrat and Republican alike,
has become a
kleptocracy approaching par with third-world hell-holes.
This is the way a
great country is raided by its elite.” ---- Karen
McQuillan AMERICAN
THINKER.com
Wikileaks exposes Obama’s bankster-infested
administration!
BARACK OBAMA …… the banksters’ RENT BOY!
“Citigroup’s recommendations came just
three days after then-President George W.
Bush signed into law the
Troubled Asset
Relief Program, which allocated $700 billion
in taxpayer money to rescue the largest
Wall Street banks. The single
biggest
beneficiary was Citigroup, which was given $45
billion
in cash in the form of a government
stock purchase, plus a $306
billion
government guarantee to back up its worthless
mortgage-related
assets.”
MUCH MORE HERE:
“As president, Obama not
only funneled trillions of dollars to the banks, he saw to it that not a
single leading Wall Street executive faced prosecution for the orgy of speculation and
swindling that led to the financial collapse and Great Recession, and
he personally intervened to block legislation capping executive pay at bailed-out
firms.”
“So
when Clinton was hobnobbing with Goldman Sachs CEO Blankfein in 2013,
while investigations of wrongdoing by Goldman and the other
Wall Street banks were still ongoing, she was consorting with a man
who belonged in prison.”
CRONY
BANKSTER LOOTING OF AMERICA
THEIR GOLDEN AGE OF PLUNDER IS NOT OVER!
NO PRESIDENT IN HISTORY SUCKED IN MORE BRIBES FROM BANKSTERS
NOR INFESTED HIS ADMIN WITH BANKSTER CRONIES MORE THAN OBAMA!
And
while the Obama administration worked systematically
to bail out the banks and
make the financial oligarchy richer
than ever, shielding the architects of the
Great Recession
from criminal prosecution, it did impose fines for some of
the banks’ grossest swindles, including the sale of worthless
subprime
mortgage-backed securities, the rigging of key
global interest rates such as
the London Interbank Offered
Rate (Libor), drug money laundering, illegal home
foreclosures and other illicit activities.
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