Last Wednesday, March 14, the Senate passed the Economic Growth, Regulatory Relief, and Consumer Protection Act. Senate bill 2155 is a deceitfully named bill. A bill which guts large parts of Dodd-Frank.
Dodd-Frank was implemented in 2010 in the wake of the Great Recession on 2008. In general, Dodd-Frank was essentially a band-aid on a gunshot wound. The bill imposed minor regulations on the financial sector.
It created two new government organizations, the Financial Stability Oversight Committee and the Orderly Liquidation Authority, which were instituted to oversee large financial organizations in America.
These regulatory bodies were created to monitor institutions, such as those deemed “too big to fail.” The idea was to oversee those groups with assets exceeding US$50 billion in order to prevent them from acting in ways that would endanger the US economy, such as those that led to the subprime mortgage crisis in 2008.
S.2115 changed all that. The bill raises that limit to US$250 billion. The language of the bill often refers to oversight regarding “community banks.” This legislation would expand those exempted from these protections to include such hometown businesses as American Express.
Perhaps the most appalling, but unsurprising, development is that the mainstream media is calling this one fifty-fifty, referring to it as a “rare bipartisan-agreement”. While this is certainly bipartisan, that doesn’t mean that it is good as much of the media implies, in fact it is quite the opposite.
When the corporate wings of the Democratic and Republican wings of the government come together, they almost always do so to screw the American people.
This move will almost certainly lead to the next big financial crisis. This is all made the worse by the fact that when this happens the average American is likely going to have to foot the bill AGAIN.
If the average American citizen started a business and ran it into the ground due to stupid business decisions they would be told to take a hike, and rightfully so. However, if a large multinational corporation gambles with your money and loses big, then guess what, you not only lose your money but have to also pay for the loss. This is a ridiculous and broken system.
We have to change this way of doing things. A big part of that is getting money out of politics. This can be done through a myriad of routes. These include Justice Democrats, Brand New Congress, Represent.US, Wolf Pac, Common Cause, and the list goes on. Seek out your local branches, donate, get involved, but whatever you do we have to work to reclaim our democracy from the hands of the oligarchs before it’s too late.