Now they strike again. It’s very important to protect lenders from the evil consumers. The WSJ, under the headline “Democrats Soften Financial Bill,” tells us that the bankers’ favorite Democrats are stripping important consumer protections out of the Obama Administration’s financial regulation bill. The requirement that lenders offer plain vanilla credit cards, mortgages and consumer loans is gone. That was too populist. Really. Or maybe it was an interference with the right of banks to contract on whatever terms they want. And get this:
The banking industry and Comptroller of the Currency John Dugan have criticized a plan to give states the ability to enforce consumer-protection laws against national banks such as Bank of America Corp. and Citigroup Inc. [Congressman Barney] Frank has long supported such a move, but Wednesday acknowledged it was a controversial issue and that its future still hadn’t been resolved.
Controversial? It’s controversial to suggest that we add more people to enforce laws against cheating people? Only in Crazyville, AR and Sillyman, TN. Here’s a typical Republican, Congressman Tom Price, of Brainless, GA:
“We take the current regulators and say ‘y’all have to do your job,’ and if there are new products or financial institutions out there that aren’t being watched, somebody has got to watch them, and you are in charge of determining who will watch them,” Mr. Price told Mr. Geithner. “Is there something wrong with that?”
Geithner explains that it leaves us exposed to another financial disaster, thus demonstrating that he, at least, learns from his mistakes.
In the short video clip above, Paul Krugman tells Rachel Maddow that if Congress can’t pass consumer protection laws, it certainly won’t be able to pass the crucial regulatory laws. We know which side the Blue Dogs are going to take, don’t we?