Ready To Say Goodbye To Your Money?

Bankers want to end the Volcker Rule

 They’re at it again. The banking community and their loyal employees in the Oval Office, House and Senate are hacking away at the hateful Volcker Rule. It was a key part of the emergency legislation passed in 2009 to rescue our financial system from the damage done by the bankers. Ever since 2009 bankers have dreamed of the day Volcker goes away.

The bankers did well when they gamed our financial system with fault-laden real estate loans, phony credit ratings, falsely upgraded bonds, and fast-traded “packages” of bad loans in a game that resembled musical chairs. When it finally fell apart in 2007 Bush Administration, they were bailed out by the Obama Administration in 2009 and forced to put up with the Volcker plan rules to protect us from bankers and banking from itself.

For bankers, regulations are bad news, no matter what happened to make them needed. Trump is listening to their pain and wants to make banks great again. Although he himself had four bankruptcies, bankers love the guy because he understands how Volcker restricts their growth: not only did Volcker make bankers raise the amount of cash they had to hold in case a loan went south, that cash had to be from the banks’ profits, not the depositors’ cash. That’s bad for bankers—and, besides, it was another leftover from Obama.

Bankers want us to believe that banking is so complex and complicated that unless bankers run the whole show, a disaster is inevitable. That argument is a dodge to have a discussion of how complicated banking is instead of a discussion about how untrustworthy bankers can be. When the bankers again turn out to be as untrustworthy as they were nine years ago—none went to jail or were banned from banking, many are still around—we will be in for another rude awakening.

Republicans are in a hurry to erase Volcker now in case they lose the House in November. Democrats have been slow to tell us what they would do about restoring Volcker-like protections for consumers if they regained the House.

Time to get involved: Contact your congressional reps and candidates to press them for an answer in plain English to this question: Do you support or oppose ending the Volcker Rule? Add that dodging the question will suggest they either don’t want their answers known or don’t want their banker supporters to be angry.

To be better informed, check out U.S. Lessening Risk Safeguard Banks Despiseon the front page of The New York Times of May 22, 2018 by Emily Flitter and Alan Rappaport. And read what some day may be Thomas Friedman’s most memorable column: Sounding Code Red on page 30 of The New York Times of May 30, 2018.



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