The Globe is reporting that they have uncovered e-mails from Scott Brown and his campaign after the passing of Wall Street reform (Dodd-Frank) to further weaken the legislation. It seems that Brown was not satisfied in his role in watering down the legislation, Brown pushed for a loose interpretation of the law, allowing banks to more easily gamble taxpayer backed funds for high-risk investments.
…e-mails obtained by the Globe show that Brown’s work on behalf of the financial sector did not stop when the law was passed. In the second stage, as regulators began the less publicly scrutinized task of writing rules amid heavy pressure from the banking sector, Brown urged the regulators to interpret the 3 percent rule broadly and to offer banks some leeway to invest in hedge funds and private equity funds.
First was a memo in March 2011 from Brown’s legislative director Nat Hoopes which was sent to the Treasury Department, which was coordinating the five agencies writing the rules. A second email was from Scott Brown himself in June 2011 directly to Treasury Secretary Timothy Geithner echoing the earlier memo trying to futher water down rules.
The memo’s impact summarized by former FDIC lawyer Anne Graham:
Ann Graham, a lawyer formerly with the Federal Deposit Insurance Corp. and an advocate of strict regulation who teaches banking law at Hamline University in Minnesota, said Hoopes’s memo urges regulators to “substantially undercut the Volcker rule’’ in ways that would allow banks to skirt the 3 percent limit on hedge fund ownership and delve into riskier investments.
Hmmm, seems like JPMorgan Chase and Scott Brown have more things in common than we realized.
Oh, by the way, Brown’s office declined to make the senator available for an interview on the Globe story.
(Shocked expression on face.)