Last week – the House Financial Services Committee – which is chaired by Representative Spencer Bachus who is under investigation for insider trading – released their plans to cut into consumer protections. First – House Republicans want to get rid of the government’s power to wind down big financial firms without having to bail them out.
This was a new power given to the federal government in the Dodd-Frank Wall Street reform law passed after the financial meltdown of 2008. Republicans also want to end the White House’s foreclosure prevention program aimed at keeping struggling homeowners in their homes – and cut the Consumer Protection Bureau’s budget by two-thirds.
What does all of this mean? More profits for giants banks and more fees, fine print, and predatory lending for consumers.