Sen Warren periodically pops up and decries Wall Street, Big Banks, Credit Card Companies, etc. Sometimes I’m with her, sometimes I’m not. Periodically though she is on the backs (modern phrase: “up in the grill”) of regulators in the financial industries. When she is, I am the biggest fan. As I am involved in a financial compliance function, I know what my own company must do to follow the rules. Why financial services companies don’t have to do this, is beyond me.
Here’s a link to her latest:
I understand the DOJ has gotten billions in fines from various Wall Street and others. That’s not the point. For many companies fines and penalties are just a cost of doing business. In the nation’s money capital, the motto is probably “so fine us- we’ll just make more.” Note: these fines are usually against the corporation. It’s only when you really put personal hardship on an individual (including making an example of him) that other individuals will ignore their greedy impulsive and behave as proper participants in our economy. The SEC used to pursue this path against company CFO’s. Basically boot them out, take all their money and make them permanently unemployed. Other CFO’s though twice before any monkey business.
Why have the regulators been slacking? I watched one Warren grilling and they have no answer- they just hang their heads. I”m sure a long Atlantic article or something could get to the bottom (starting with the revolving door). What doesn’t matter is why, the question is why doesn’t anyone care in this administration? Is it really the Republicans fault, when:
The President has appointed the entire SEC.
The DOJ is an Executive branch.
The President has appointed the entire Fed.
That’s all the regulators. Again, sure they’ve gotten a lot of money out of the offending entities. Anyone think they’ve learned their lesson and won’t do it in the future?
I fully expected in 2009 to see some perp walks. I know they’ve had trouble figuring out how to convict people (your average juror probably can’t figure out interest on a credit card, let alone listen to detailed financial dealings), but I don’t care. Figure out a way. It’s important to our economy. The financial services companies have the most money and top to bottom the smartest people. They are working to bend the rules every day (anyone think high frequency trading is okay?). They have to be countered.
Do you think Sen Clinton is going to change things? I’ve been reading stuff like this all over the business news.
In general on BMG Republicans get a lot of blame. I will concede they are trying to water down Dodd-Frank, though I don’t know enough about some of the particular provisions to know if it’s a good idea or not (I’m guessing not). Rules and regulations are much less effective when they are not enforced. We’re all interested in solving the inequality problem, and clearly in financial services (unlike maybe others) the super-rich can’t be making their money through activities that don’t benefit anyone but themselves. Step one on that path should be good regulations enforced by effective agencies. As much as everyone loves Elizabeth Warren as our senator, I would have rather seen her spearheading an Administration effort to fix a system that can be a competitive advantage for our country (by making sure money gets to where it needs to go to create a broad robust economy). Instead we get Geithner, Lew, et al as regulators. Does Yellen seem like a bankers worst nightmare? I might have gone at least with a known a-hole like Summers.
I’m not hopeful that anything occur any time soon.
Meanwhile what’s CFPB head Richard Cordray working on? Payday loans. http://blog.al.com/press-releases/2015/04/installment_lenders_payday_len.html Gee tough target (sarcasm 1).
oh and he’s also in the news about “homebuyer information” http://blog.al.com/press-releases/2015/04/installment_lenders_payday_len.html Glad he’s on the job (sarcasm 2).