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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBanks May Have Overplayed Their Hand Fighting Wall Street Regulation
(Bloomberg) -- The financial industry is finding that winning in Washington comes at a cost.
Wall Street lobbied aggressively and succeeded late last year in persuading lawmakers to roll back rules for the $700 trillion derivatives market. Instead of generating momentum for further changes to the Dodd-Frank Act, the victory sparked a populist uprising among Democrats thats had wide-ranging consequences, including stymieing less controversial requests from regional banks like Capital One Financial Corp.
A short while ago there was bipartisan agreement on a number of common sense improvements, said Rob Nichols, president of the Financial Services Forum that represents the chief executives of Wall Streets biggest banks. Unfortunately, that bipartisan agreement is gone.
Financial companies and their employees spent $169 million on the November elections and had expectations that their bid to loosen regulations would get easier with Republicans in control of both the House and Senate. Now, there is second-guessing that banks overplayed their hand, according to lobbyists. The December win on swaps rules has become a rallying cry for Senator Elizabeth Warren, a frequent critic of Wall Street, and spurred repeated White House vows to defend Dodd-Frank.
The fallout has frustrated banks, which hope its temporary. Democrats who previously said they wanted to revise the law now wont even discuss it. Republicans are altering their strategy for attacking Dodd-Frank. And lobbyists have been hindered in their efforts to persuade Senate Democrats to champion changes to financial rules.
A sign of the political headwinds has been regional banks difficulty winning bipartisan support for a bill that would free them from stringent oversight imposed on lenders with at least $50 billion of assets.
http://finance.yahoo.com/news/banks-success-curbing-regulation-sparks-100000149.html
daleanime
(17,796 posts)Godot51
(239 posts)$169,000,000 is chump change when you're working on $700,000,000,000,000...
burrowowl
(17,652 posts)Damn the Banksters!
myrna minx
(22,772 posts)blackspade
(10,056 posts)rhett o rick
(55,981 posts)staggerleem
(469 posts)Gutting regulations = "common sense improvements".
Allowing Wall Street to use FDIC-insured funds to play the market ponies is just "common sense" right? Because why should they take a chance on losing their lunch, when we've always been so willing to allow them to eat ours?
Actually, that's somewhat inaccurate - we don't just GIVE them our lunch. Their cronies in Congress figure out how to ladle heaps of goodies from our plates onto theirs with their left hands, while they wave the flag, the 2nd amendment, and the rest of the bill of rights in their right hands, shouting "FREEDOM!" all the while.
bvar22
(39,909 posts)I thought the Republicans opposed that.
mikeysnot
(4,757 posts)Up for the few, they are for it! Evenly for the many, against it.....
Control-Z
(15,682 posts)In other words, with Citizens United, they thought they were buying themselves an election.
"Financial companies and their employees spent $169 million on the November elections and had expectations that their bid to loosen regulations would get easier with Republicans in control of both the House and Senate."
AwakeAtLast
(14,134 posts)Methinks some of them might have gotten taken. Couldn't have happened to nicer people!
salin
(48,955 posts)Octafish
(55,745 posts)The track record being cha-ching and all things Buy Partisan.
Enthusiast
(50,983 posts)hifiguy
(33,688 posts)Your BFF Hillary will make the big, bad regulations go away.
Enthusiast
(50,983 posts)rpannier
(24,339 posts)common sense as define by bankers, charlatans and pirates