Posted by on June 08, 2016
And, like clockwork, left wing Democrats found the nearest possible microphone to trot out stale talking points about “Wall Street” and criticize the plan before they even knew what was in it.
Just like President Obama, we’re in “myth-busting” mode. Here are some of their fact-free whoppers – and reality.
Fact: The Big Banks on Wall Street oppose the Financial CHOICE Act (as the New York Times reported here). And PoliticoPro reports that while big banks aren’t supporting the Financial CHOICE Act, “small banks, however, did not hesitate to get behind the plan.”
We remind Senator Warren that the CEO of Goldman Sachs said his big Wall Street firm would be “among the biggest beneficiaries” of Dodd-Frank and the CEO of JPMorgan Chase said Dodd-Frank benefits Big Banks by creating a “bigger moat” – “deterrents for small financial institutions to jump into new business lines and steal market share.”
Fact: The Financial CHOICE Act imposes the toughest penalties in history for financial fraud, self-dealing, and deception to protect consumers and strengthen markets. It demands real accountability from Wall Street. (Side note: It’s the Obama Justice Department – with its prosecutorial discretion and power – that has treated Wall Street as Too Big To Jail.)
Fact: To use the Senator’s terminology, “mega bankers” are opposed to our plan. Why? Because Democrats gave them a competitive advantage with Dodd-Frank. Today, Big Banks are the only ones with the manpower and resources to navigate Dodd-Frank’s regulatory maze. Community financial institutions don’t have the same luxury, which is why we’re losing an average of 1 per day.
And Senator Brown’s attack seems hypocritical since the Financial CHOICE Act takes a similar approach to one he proposed regarding capital standards.
By the way, Senator: It’s Dodd-Frank that has made life “tougher for ordinary Americans.”
Fact: The Orderly Liquidation Fund was created by Dodd-Frank and its sole purpose is to bail out Too Big To Fail banks. Here’s a pro-tip Josh, if it looks like a bailout and acts like a bailout, it’s a bailout.
Claim: “[T]here should be no more confusion about which party is on the side of big banks and large financial interests on Wall Street.” – White House Press Secretary Josh Earnest
Fact: You got that right. Unlike the failed Dodd-Frank Act, the Financial CHOICE Act will provide economic growth for all and bank bailouts for none.
Posted by on May 18, 2016
For the non-lawyers in the room, arbitration is a form of dispute resolution where parties agree to settle a claim with the help of an independent mediator, rather than hiring a lawyer, joining a class action lawsuit and waiting – sometimes for years – before our overcrowded court system can hear their case. But the CFPB is trying to prohibit this more cost effective alternative and the many benefits it offers consumers.
Without arbitration, consumers will be relegated to joining class action lawsuits, which is actually much worse for consumers according to a recent study from—wait for it—the CFPB. That’s right, the Bureau’s own 2015 study shows that only 13% of class actions are settled on a class-wide basis. And among the consumers eligible for relief in those 13% of cases, only 4% ever receive one red cent from the settlement. In other words, class action lawsuits benefit just 0.5% of the class members…ONE-HALF OF 1%.
Yet, that is what the federal government wants to force on consumers.
So what’s all this really about? Money.
This CFPB rule is nothing but a big, wet kiss for trial lawyers who will reap the benefits of more litigation and exorbitant payoffs from class action lawsuits.
The Bureau’s proposed rule would significantly increase costs, time-to-resolution, and the burden on our judicial system.
It may be a great deal for trial lawyers (like Saul), but it’s a bad deal for consumers.
Posted by on April 07, 2016
2. But then we realized that it’s 1,000 pages long. 1-0-0-0 pages…
6. And when the Administration’s own experts warned this rule could hurt more than help, the political appointees basically said, facts, schmacts.
8. We WILL fight to protect the retirement security and investment choices for all Americans.
9. And we WILL NOT let the Obama Administration deny millions of hardworking Americans access to reliable, affordable investment advice.
Posted by on April 01, 2016
Posted by on April 01, 2016
Posted by on February 29, 2016
7 photos from the Month of February:
The Debt // Federal Reserve Chair Janet Yellen makes her first public comments since the Fed’s decision to raise interest rates and since the national debt eclipsed $19 trillion.
Posted by on February 16, 2016
The only problem was that no one would take a risk on Robert. He couldn't get a job. He couldn't get a loan. He couldn't even get a bank account. The deck was stacked against him. It was against these odds that Robert decided that if he was going to turn his life around, he needed to start his own business.
Enter a local small dollar lender who understood Robert’s situation and designed a financial product to fit his needs.
“The payday loan I got...was a lifeline,” said Robert. “It enabled me to start a business.”
Robert understood the loan needed to be paid back. He understood how much it would cost. And he made a decision that was right for him.
Today, Robert’s business employs 20 people and is still growing. He is a member of his local chamber of commerce and of the Better Business Bureau. He is a productive member of his community, but it all may have been for naught if he couldn’t access a small dollar loan.
That’s why the CFPB’s attempt to shutdown small dollar lenders through regulatory fiat is so disturbing. It threatens to cut off the roughly 51 million American consumers who are unbanked or underbanked from accessing what may be the only type of credit available to them.
What the CFPB is attempting is nothing less than a Washington power grab. It is decreasing consumer choice, increasing the cost of credit, and reducing credit availability to the most vulnerable Americans.
If we promote more choices, then we can create more opportunities for low and moderate income Americans like Robert to rise up and build better lives for themselves. And if we don't -- if Washington is allowed to limit Americans' financial freedoms and choke off access to small dollar lenders -- then stories like Robert's will become a lot less likely.
The consequences of this regulatory overreach are very real, as demonstrated by Robert’s response to a lawmaker who asked where he may be today if he hadn’t had access to the credit to start his small business:
Posted by on February 11, 2016
House Committee: Treasury Played Politics in Debt Ceiling Debate
Secret Fed Docs Show Obama Misled Congress, Public During Debt Limit Crises
Treasury sought to withhold plans on debt: Report
"[E]mails from inside the New York Fed paint a picture of the Treasury as withholding information in order to gain leverage in the ongoing negotiations…Not everyone inside the New York Fed was happy with the Treasury's 'close hold' approach to the planning information. 'Agree the close hold here is crazy, counter-productive, and adds risk to an already risky situation,' wrote a New York Fed employee on Sept. 24, 2013."
"The stunning revelation could fundamentally change the battleground between Capitol Hill and the White House heading into the next debt showdown early next year, because it means a president could no longer use the threat of a full government shutdown to win a debt hike."
GOP investigation: Treasury misled Congress, public about the debt limit
Inside the Fed's `D-Day' War Games for Breach of U.S. Debt Limit
"Republicans on the panel said the documents show that the Obama administration misled the public about contingency plans during recent debt-ceiling showdowns and obstructed a subsequent congressional probe into the matter."
Obama Lied, and the Debt Ceiling Died
The Obama Administration Misled Americans During the 2013 Debt-Ceiling Debate
Probe: Obama Admin, Treasury Dept. Misled Nation on Public Debt Limit Plan
"One communication from the Federal Reserve was especially damning, saying, 'Treasury wants to maximize pressure on Congress by limiting communications about contingency planning.'
Subpoenaed Documents Reveal Obama Admin Deliberately Kept Congress in Dark Over Debt Ceiling Plans
House Report Says Treasury Secretary Misled Congress Over Debt Ceiling Risks
Posted by on January 12, 2016
2. Community banks and credit unions are thriving.
3. Too Big To Fail is a thing of the past.
4. Our regulatory system has been streamlined.
5. Median household income has risen.
6. Taxpayers will never have to bailout Wall Street again.
7. New business startups have increased.
Posted by on January 05, 2016
Not surprisingly, the new report from the Government Accountability Office (GAO) indicates an “increased compliance burden” among community banks and credit unions, which has “begun to adversely affect some lending activities, such as mortgage lending to customers not typically served by larger financial institutions…”
Meaning that, once again, we see that this law supposedly intended to rein in Wall Street is hurting Americans on Main Street.
And it’s not going to get better. As the GAO reports, “the full impact of the law remains uncertain” because the “array of new regulations” spewing forth from Dodd-Frank have yet to be finalized and fully implemented.
Small hometown banks and credit unions tell the GAO the “trickledown effects” from this future “one-size-fits-all regulation” will fall on them.
The GAO report comes on the heels of a similar study by the Dallas Federal Reserve, which concluded that in the onslaught of Dodd-Frank regulations “more banks may become too small to succeed.”
The Financial Services Committee is working to change this. In 2015, 28 of our Committee bills were signed into law, including 6 dealing with Dodd-Frank. In 2016, we’ll be working to present visionary proposals laying out a better vision for financial reform – bold ideas that promote more opportunities for low and moderate-income Americans, protect taxpayers from future Wall Street bailouts, and empower families and individuals to achieve financial independence.
You can join our efforts and track our progress by signing up for regular updates here.