Republicans planning to sabotage America…


Financial industry hopes for more favorable atmosphere after election….

“A Republican-controlled House and a more evenly split Senate, as is expected after the Nov. 2 midterm elections, will help drive the kind of pressure Wall Street wants to exert.

“There are lots of issues with Dodd-Frank that are still up in the air,” said Dean Baker, co-director of the Center for Economic and Policy Research.

According to the Center for Responsive Politics in Washington, during the second quarter of 2010, the finance, insurance and real estate sector donated $28 million to congressional candidates, party committees and political action committees, with $16 million going to Republicans and $12 million going to Democrats. That’s a major shift from the first quarter of 2009 when the sector pumped $15 million to Democrats and $10 million to Republicans.

The finance, insurance and real estate industry also allocated $252 million into their own lobbying efforts in 2010.

They also gave heavily to independent lobby groups to fund issue advertisements that often indirectly backed Republican candidates.

Insurance giant Prudential Financial Inc. (NYSE: PRU News) allocated $2 million to the U.S. Chamber of Commerce in 2009, the same year the lobby group launched a TV advertising campaign seeking to stop a Democratic effort to create a consumer watchdog agency. Read a 2009 Prudential Financial report on its donations.

The big transfer of capital from Democrats to Republicans started in January as it appeared to the financial industry that bank reform legislation on the Hill was going to have a major impact on their sector, argues Center for Responsive Politics spokesman Dave Levinthal.

By the time the Dodd-Frank Act was approved in July, it was clear the financial industry had made a decided shift to fund Republicans, Levinthal said.

“With financial reform not going their way, the impetus was for money to be allocated to Republicans — people more philosophically aligned to their financial interests,” he said….

Consumer agency at stake

Crowley says all the major financial services industry trade associations are resigned to the reality of a new Consumer Financial Protection Bureau, which was created by the bank reform legislation to write rules for mortgages and other consumer credit products.

And to a certain extent, he said, they favor consolidation and harmonization of the consumer protection rules.

However, he argues these trade groups are largely backing Republicans to try to limit the emerging agency’s expected efforts to restrict the kinds of mortgage and other finance products banks can offer.

Ely says that a major priority of the financial services industry and one they are expecting Republicans to push for is to limit the power of the new agency’s director, yet to be identified by President Barack Obama, and to rein in the independence of the bureau.

Republicans want to transform the bureau into a commission with five directors, instead of one chairman, subject to congressional appropriations. As currently set up, it automatically receives funds from the Fed’s budget.

“These kinds of changes are feasible, politically,” Ely said.

The Obama administration appointed Harvard Law School Professor Elizabeth Warren as a special advisor to the Treasury Department on the formation of the bureau. Warren is likely to be too controversial to be nominated as its first formal director.

Crowley points out that a Republican-controlled House could try to cut appropriations funding for the special position as an attempt to limit her involvement in the controversial bureau.


  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: