Yet Another Loophole?

Read for yourself. Basically Ed Perlmutter and Barney Frank introduced a colloquy into the record that seems to say that the legislative intent of the reform bill is that the CFPA should delegate its examination powers over a given bank (which have already been limited to banks with over $10 billion in assets) to other regulatory agencies if those other agencies deem that the bank has a strong consumer compliance record. As loopholes go, I don’t think this is anywhere near the most toxic. (I guess the justification for this would be that it allows the CFPA to focus its resources on the largest banks, rather than banks with $11 billion in assets.)

But my favorite part of the article was this:

“[Perlmutter’s communications director Leslie] Oliver said there was no connection between the campaign contributions and Perlmutter’s actions. ‘He is campaigning. He accepts campaign contributions. Look at the totality of his campaign contributions,’ she said.”Of the $28,500 committees donated to his campaign in October, more than two-thirds came from the financial services industry.”

For the current election cycle, he has received the most money from the finance/insurance/real estate sector ($160,000), with lawyers and lobbyists second ($88,000). Labor is third at $75,000.

By James Kwak

20 responses to “Yet Another Loophole?

  1. If this financial “reform” does not have enough loopholes to drive a SIV through, I will lose all faith in our feudal system.

    We work for the banks now. Most of us just don’t realize it.

  2. Why don’t they just embrace the obvious and hand over all regulatory obligations to Goldman Sachs?

  3. That this blatant corruption is not recognized as such is astonishing. And a sad testimony to our national indifference to the way in which we are governed.

  4. What is most incredible is how cheeply these shy sters are bought. $28,500? It takes a real ch ump to sell himself for that kind of chum p change. No doubt for $100,000 you can buy Bar neigh’s entire committee. I wish I had a profitable agenda.

    How about some Senior Citizens Retirement bonds? For those over 65 the go’mint will pay a special rate of 6.5%. No individual senior gets to buy more than $3 million worth. Of course, those with less than $3 million can sell the excess. Sort of like cap n trade!

  5. This is a great blog, I greatly appreciate the insight from both founders. However, based on what is going on in congress, maybe we need another blog devoted to how the average guy/gal can avoid being stuck when this mess repeats and is most likely 100x more deadly?

  6. Repeated from A Partisan Post, You Have Been Warned

    Maybe a tax on lobbying is needed similar to the UK bankers bonus tax? All payments to members of congress (for whatever reason) to be non-deductible expenses and matched 1:1 (variable over time as required to fund deficit) with a payment to Treasury?

  7. We no longer live in a democracy. In fact Amerika has devolved into a keptocracy! Wherein a few various and sundry predatorclass oligarchs own and control the government and the conduct of the government and the nation. The people have absolutely NO VOICE, and NO INFLUENCE in the conduct of the government. Our socalled politicians and leaders are bought and paid for by said oligarchs, and every law, and every effort is made by the government to protects, enhances, enrich, and shield the oligarchs, – with a proportional deleterious impact on the people.

    The predatorclass owns and contols Amerika. The rest of us are slaves, digits. Our leaders do care about, represent, defend, or advocate for the best interests of the American people. Our socalled leaders are instead bent on providing extraordinary government largess, representing, defending, shielding, and advocating for the predatorclass and the oligarchs exclusively and entirely.

    Amerika has shapedshifted into, and we inhabit – a kleptocracy.

  8. Forgive the double post; but for clarity – I mean’t to say {Our leaders do (NOT) care about, represent, defend, or advocate for the best interests of the American people. Our socalled leaders are instead bent on providing extraordinary government largess, -and representing, defending, shielding, and advocating for the predatorclass and the oligarchs exclusively and entirely.}

  9. It’s 1930, still. The people who made the problems are still in charge. Question is, what’s it going to take to change things?

    (Enter Sarah Palin, *Barbarian Heroine*! Sort of like Othar Tryggvassen, *Gentleman Adventurer*, only even more screwed up. 2012. Hmmm. Maybe the Mayans had the right idea.)

  10. I believe the rest of us, technically speaking, would be peons.
    http://en.wikipedia.org/wiki/Peon

  11. I fear that the next leader will be a Fuhrer or Duce. That would be change, so we must be careful what we wish for…

  12. Forget about Palin for the moment. Our new Queen B is Melissa Bean of Illinois. She bullied her way so that banks would not have to meet stricter state banking requirements. Melissa Bean sold her soul to the devil so she could rub her foot under the table with big bankers. Maybe Melissa Bean wants to be the new Phil Gramm. Play footsie with the big banks, sell out your country, and future security is yours for the taking.

    If you live in Illinois ask Melissa Bean what candy and goodies she got from big bankers. Here is Melissa Bean’s phone number if you want to ask her why she sold her soul for bankers.
    In Illinois: 1701 E Woodfield Road, Suite 200, Schaumburg, IL 60173 | (847) 517-2927
    In Washington: 432 Cannon House Office Building, Washington, DC 20515 | (202) 225-3711

  13. I honestly wonder if Representative Melissa Bean takes a shower after she spends time with big bankers, or does she let that smell stay on her???

  14. Charles in Colorado

    $28,500 .?.. naw.

    That’s what I was thinking Jake. You can be sure that this Pearl Mutt is getting all his deals on the side. Now or later. It is disgusting, representative democracy in america. And as for Nobama, I feel completely betrayed.

  15. As loopholes go, I don’t think this is anywhere near the most toxic. (I guess the justification for this would be that it allows the CFPA to focus its resources on the largest banks, rather than banks with $11 billion in assets.)

    Yeah, I’m sure that’s the point. And that’s how it’ll be used, too. (Insert rolling eyes emoticon.)

  16. Obama tries to reclaim the high moral ground: “I did not run for office to be helping out a bunch of fat cat bankers on Wall Street,”

    http://www.presstv.ir/detail.aspx?id=113533&sectionid=3510213

    Talk is cheap; take action- break up too-big-to-fail banks.

  17. A no vote stands for letting big bankers rape and pillage American consumers and taxpayers more. Check and see if your House Representative voted no and wants large bankers to sodomize you for more bankers bonuses and inflated salaries.
    http://politics.nytimes.com/congress/votes/111/house/1/968

  18. An interesting quote that should tell you how horrifying their internal polling numbers must look on the issue of the Banks and the administration’s (real or perceived) coziness with them.

    So I would look for the President to breathe fire and kick the living hell out of them behind closed doors when they visit this week. All well deserved in my view, but whether he means any of it or whether it’s pure optics that the bankers understand they merely have to endure will become quickly evident when this bill hits the Senate.

    I do worry that the bankers (and maybe others) have reached the worst possible conclusion anyone can reach about any President—that he’s not someone to be afraid of.

    We’ll know soon enough…fingers crossed everyone.

  19. What about this butch haired girl???—Want to know which member of Congress is putting loopholes in and watering down the banking and finance reforms currently running through Congress (H.R. 4173)??? Click the link below and look for the very homely one. It’s Representative Melissa Bean of Illinois. http://www.swamppolitics.com/news/politics/blog/Melissa%20Bean.jpg