Donald Trump ran a faux-populist campaign for office, bashing Democrats for being too close to Wall Street. But in office, it’s a different story. Alongside Congressional Republicans and a handful of Democrats, he’s been busy deregulating the banks, dismantling consumer protections, and otherwise handing Wall Street a bunch of gifts–to say nothing of the tax cuts. I spoke with Alexis Goldstein of Americans for Financial Reform to explain why, when we’re still living in the wake of 2008, deregulate-a-palooza is bipartisan policy–and how to stop it.
It is basically déjà vu all over again, is the short answer. It is like it is the 1990s and it is full speed ahead on ripping up all of the rules that we put in place after the last financial crisis. There are a few different things that are going on. One thing that is happening is in the consumer space. One of the best things that came out of the last crisis was the creation of this consumer bureau that was the brainchild of Elizabeth Warren, the Consumer Financial Protection Bureau. It was one of the few places that was actually looking out for the little guy and if your bank rips you off for like $15, you could complain and pretty quickly usually get a resolution because they have this complaint system and the Consumer Bureau would reach out to the company on your behalf. It is amazing. The other thing that they did is they sued companies and tried to get back money that financial companies had stolen from people. They got back billions of dollars to millions of Americans. Trump installed this guy, Mick Mulvaney, who is this Tea Party guy who was already at the Office of Management and Budgets, so this is his other job. He is basically like Scott Pruitt at the EPA, a longtime foe of the bureau, running the bureau and dismantling it from within. When you complain, there is this database you can look at. So, if you have a company that is really giving you the run-around, you can look into the database and see if other people have had the same problem. Mulvaney wants to take the complaints offline so you can’t read them anymore. There were a bunch of lawsuits that the Bureau was pursuing against payday lenders that were totally scamming people and charging them like 300% interest. He dropped some of those lawsuits. He totally eliminated the Office for Students and Consumer Protection, which was one of the best – in my opinion – offices looking out for student loan borrowers. That is the consumer space. Then, if you look into the more bank-y, more systemic risk, more crisis kind of stuff, we are also seeing rollbacks there. We are seeing proposals to undo Dodd-Frank. Then, the third piece is partially Trump, partially GOP, but also, there are Democrats to blame. There were these really big pieces of legislation that was recently signed into law, that kind of makes a future bailout more likely. It is sort of like Congress is doing bad things and then, Trump is doing bad things in both the consumer space and the financial systemic risk space. It is all the bad things.
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