Are the Financial Reforms Designed to Prevent Another Banking Crisis in Jeopardy?

I will never understand why people say Republicans are good for the economy.  Historically it seems to me that the kind of laissez-faire deregulation they tend to advocate produces short term economic benefit for a few, with no real gains in productivity for the nation as a whole.  The gains are illusory, and when things collapse, the results are devastating.  I worry about what Republicans will try with such an overwhelming majority in Congress.  I hope the President and Congressional Democrats remain strong.

Below is the beginning of an excellent piece from Moyers & Company that adds to my doubts.  It’s worth reading.

Republicans and Wall Street Say To Hell With Protecting the Public!

January 17, 2015 by Bill Moyers

This post first appeared on BillMoyers.com.

Since December, Congress has twice passed measures to weaken regulations in the Dodd-Frank financial law that are intended to reduce the risk of another financial meltdown.

In the last election cycle, Wall Street banks and financial interests spent over $1.2 billion on lobbying and campaign contributions, according to Americans for Financial Reform. Their spending strategy appears to be working. Just this week, the House passed further legislation that would delay by two years some key provisions of Dodd-Frank. “[Banks] want to be able to do things their way, and that’s very dangerous.” MIT economist Simon Johnson tells Bill.

“‘Here we go again’ — I think that’s exactly the motto, or the bumper sticker for this Congress. It’s crazy, it’s unconscionable, but that is the reality.”

Lawmakers are pinning these provisions to Dodd-Frank onto bigger must-past bills like spending measures that the president doesn’t dare veto.

Bill Moyers: The safeguards that Congress is tearing down, even as we speak, were put in place after the financial disaster of 2008 to prevent another one like it from happening. Why do you think the Republicans are trying to sabotage them?

Read his Simon Johnson’s response and the rest of the interview at the Moyers & Company site, where you’ll also find much more coverage of the issue.