Here’s a question I have been wondering...why do ‘moderate’ Democrats seem to cave on economic issues that are not supported by very many people in the Democratic Party? In fact, they seem to cave on issues that are so opposed by the Democratic Party, en masse, that it would almost appear to be counter to the values that would make a person become a Democrat? When the Dodd-Frank financial legislation was passed in 2008, it was passed for a specific reason...to keep banks OF ALL SIZES from creating risky financial structures and investments that would cause them to be massively over-leveraged beyond their capacity to pay. Now the myth that was put out there was that the financial crash was a tale of ‘Too Big to Fail’ giant banks and insurance companies that fraudulently over-invested themselves in credit-default swaps for sub-grade mortgages. Companies like Bear Stearns, Merrill Lynch, Washington Mutal, and AIG. This is a truth that cannot be denied.
What most people don’t know, is that the small banks also were pulling the same schemes, and nearly 500 small and local banks collapsed within a a 4 year period of 2008 — 2012 under the weight of faulty mortgage and loan schemes. Previously the average number of banks becoming insolvent per year had been around 10 banks per year. It was a massive sell-off of financial wealth and destroyed countless peoples lives and livelihoods. It has taken us nearly 10 years for us to recover back to a point where the economy is considered growing successfully again, but let’s be clear this is still recent history.
What has the banking industry done to earn our trust since that time? It seems like more and more banks are caught doing awful things recently. Bank of America stole people’s cash for their own profit-making motives. Wells Fargo was caught creating fake bank accounts on a massive scale due to intra-bank corruption and misguided bonus schemes. Banks continue to be under defended online to the point that a hacking syndicate was able to steal 1 billion dollar in assets from worldwide banks. That’s not to mention all of the different banks that have lost their customers data and been fined for mortgage fraud such as:
1. BB&T
2. Goldman Sachs
3. Morgan Stanley
4. Wells Fargo
5. HSBC
6. Allied Home Mortgage
7. M&T Bank Corp
8. Regions Bank
and the list goes on and on….
So I have to ask these ‘Moderate’ Democrat Senators...what have the banks done to make you trust them that you are willing to give them the benefit of the doubt? I keep hearing you saying that this will only affect the small banks. Well here’s the catch, a lot of the small banks are doing the same things as the big banks, they’re just fewer people at watchdog agencies who are able to keep track of the 1000s of small banks and credit unions in this country to catch them before a disaster strikes and they all get swept up in a market crash.
Also, why the rush? We’re about to sweep back power from the Republicans, why do we need to pass this so hurriedly? Do you need to pass all the awful shit that will get you giant campaign checks before Republicans lose in the fall because you know the majority of Democrats would never support this bullshit.
Why does this need to pass now? What have the banks done to earn our trust? If your answer is better loan products and interest rates for loans, then I just have one question for you. When the next bank collapse happens...and many of us lose our jobs or our livelihoods, can we come to your house to collect?
I know this is not the most coherent essay on the subject, and I’ll be back tomorrow to add more thoughts (as it is late), but Democratic values do not involved allowing banks to take more risk at the expense of future American taxpayers. I have a feeling this has less to do with what’s good for the American people, then what’s good for their campaign’s coffers. Honestly, they’re not ‘Moderates’, they’re sychophants.