The fight against financial abuses must accelerate not reverse

Closed hearings, forced arbitration with corporate friendly adjudicators and secret settlements without admitting or denying fault, all are the cloak of deceit and abuse.

We must remember that after the reckless leverage and fraud that led to the financial crash of 1929 and the Great Depression for years thereafter,  it was not until the Senate Committee on Banking and Currency launched its 1932 inquiry into the causes of the crash, that chief counsel Ferdinand Pecora was able to subpoena and cross-examine bank heads and employees and get the story out to the public through the attending reporters.

It took Pecora’s public exposure of shocking practices to finally galvanize broad support for stricter regulations and a breaking apart of investment sales arms from deposit taking banks via the the Glass–Steagall Banking Act of 1933, the Securities Act of 1933, and the Securities Exchange Act of 1934.

The 2008 financial crisis should have launched a similar investigation and response, unfortunately the political will and public outrage fell short of demanding the changes needed.  The Consumer Financial Protection Bureau was a small step in the right direction, but in recent years, the domineering financial lobby has once more been rolling back support for regulation and accountability even in the face of a never-ending stream of brazen crimes.

Under President Trump’s request, the Fiduciary Duty rule that was to require financial advisors to put the best interests of their clients first, has been indefensibly shelved once more.  Apparently it will require another financial meltdown before public outrage may have another shot at demanding meaningful reform.

This press conference today reviewed some of the egregious abuses of late, and explained why and what, some Senators are doing to fight back against the financal cartel.  It’s worth listening.  It should make everyone mad.  We need people to be aware and outraged if anything is to get done.  Here is a direct video link.

This week, Senate Republican leaders are whipping to secure the votes to overturn a rule to protect consumers. And Senate Democrats, led by U.S. Senators Chuck Schumer (D-NY), Jack Reed (D-RI), Patrick Leahy (D-VT), Elizabeth Warren (D-MA), and Catherine Cortez Masto (D-NV), are standing up for consumers and service members by protecting Americans from the negative effects of forced arbitration clauses.

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