A video obtained by consumer watchdog groups Allied Progress and Americans for Financial Reform shows payday industry executives bluntly discussing how campaign contributions to the Trump campaign has bought them access to his administration. In a recent webinar, predatory lenders reveal their plan for using campaign cash to lock in a final CFPB payday rule that enriches them at consumers’ expense.
Kraninger is wildly unqualified to lead the CFPB: Before her confirmation, she had no experience in consumer protection or financial regulation. Civil rights groups and Wall Street watchdogs [AFR letter linked] uniformly opposed her, while the financial industry supported her—perceiving correctly that she would be, at best, a do-nothing director.
Join us on May 21st for an analysis and discussion of the important developments in the regulation and supervision on big banks, and their effects on financial security and economic stability. View the details here, or below.
Americans for Financial Reform and the Center for Responsible Lending hosted a press call today with leading experts to discuss two ongoing lawsuits concerning the CFPB director and the administration’s attempts to destroy the CFPB’s independence.
The notion that this administration is or will be tough on Wall Street doesn’t pass the laugh test, and that fact is evident in deeds, not tweets. Trump has put Goldman Sachs executives in the most senior positions in the government, and pushed for a giant tax cut for Wall Street.
“Marcus Stanley, policy director for Americans for Financial Reform, expressed concern about the report’s guidance. ‘The recommendations are “almost uniformly deregulatory.’ he said. ‘It is written pretty technically, but what they are saying is that a lot of things that were done after the crisis to try increase our safety margins and improve our risk control on derivatives they want to cut back on.’”
“Americans for Financial Reform… noted that the [Treasury] report followed recommendations from The Clearing House, a powerful trade association, in 31 out of 40 specific cases. In some instances, the language of the government and the language of the lobbyists was hard
to tell apart… ‘We’ve reached a point in this administration when big banks and private-equity funds have placed so many people in the top jobs, they hardly need to worry about lobbyists and trade associations any more,’ says Jim Lardner, a senior fellow at AFR”.
“Dodd-Frank is not perfect. For one thing, it is overly complex. And there are worthy reform alternatives that have been put forward that rely less on specific regulations and more on increased capital requirements and structural changes to separate traditional banking from speculative investing… The Treasury report has none of those proposals’ analytical rigor. Rather, it is designed to please the banks. Americans for Financial Reform, a watchdog group, plans to release a paper showing that the Treasury review endorses almost two-thirds of specific deregulatory requests submitted to the Treasury in May by the Clearing House Association, a big bank lobby.”
The Department of Labor’s proposal to delay the fiduciary rule is clearly part of the Trump administration’s plan to undo it altogether. Blocking this common-sense, long overdue rule, which requires retirement advisers to act in their customers’ best interests.