7:05 am in Uncategorized by Liz Berry
Cross Post from IfLizWereQueen
What makes people think that Obama’s latest appointment to “provide financial protection for the people” will be any different from the rest of his appointments to provide financial protection for the people?
Where is the history to support this in Obama’s prior appointments? It is not there. Those who think that it is are either delusional or asleep.
Obama appointed Mary Schapiro–the chairman of the SEC--a woman who had been an SEC commissioner (regulator since 1988 having served Reagan, Bush I, Clinton and Bush II). A lot of experience. Kinda makes you wonder why SHE didn’t catch Madoff if she is such an experienced regulator.
But never mind that. Look at her history as Director of Duke Energy since 1999. When she took over, Duke Energy ranked 46th as the worst polluter in the USA. After 9 years of Mary’s leadership, Duke Energy ranked as the #13 worst polluter in the USA. Duke Energy also has a nasty reputation for cutting off the tops of mountains–another great recommendation for Mary and her respect for the environment and people.
Schapiro is another Wall Street toady who believes in “self regulating” markets. Right. As the head of the Financial Industry Regulatory Authority (FINRA) she twiddled her thumbs while the financial giants increased their leverage to gigantic levels and spread their derivatives contagion to every part of the system.
Schapiro also missed the Madoff scandal, the auction-rate bond fraud, the blow up at Lehman Brothers, and the . . . ” Schaprio is perfect for the position as chairman of the SEC–just not perfect for the majority of the people. She is the perfect one to ensure that the Wall Street shysters will continue to fleece the American public.
Obama appointed Adam Storch to be the Chief Operating Officer of the SEC enforcement division. Mr. Storch is a former Goldman Sachs employee. For the five years prior to his appointment by Obama in Oct of 2009, Storch worked at Goldman Sachs, most recently as vice president in Goldman’s Business Intelligence Group. The position, along with the division, was created as a reaction to the subprime mortgage crisis. If Storch is not a fox in the henhouse, there has never been one. If you think that the system can or will be improved from the inside out by Barack Obama’s appointments, you are dreaming.
Now Obama is appointing a regulator for the regulators.
Now we have yet another Obama appointment to protect us: Richard Cordray’s appointment as director of the U.S. Consumer Financial Protection Bureau
The U.S. Consumer Financial Protection Bureau is a bureau created under the Dodd-Frank Act in response to complaints that existing regulators didn’t do enough to protect consumers before the 2008 credit crisis. The rules overhaul shifted consumer protection from regulators responsible for banks’ financial stability, removing a potential source of conflict.
Not having that much faith in the altruistic nature of human beings, I am a person who leans strongly in the direction of more, not less regulation, but it seems to me that if Mary Schapiro and Adam Storch were doing their jobs (which these two Foxes in the Henhouse obviously are not) the consumers would be protected. Regulators such as Schapiro and Storch disregard the holistic picture of a banks financial stability that includes their fair treatment of customers. Banks and financial institutions who treat their customers unfairly always put their investors at risk and when they do, we end up with catastrophic events such as our current global financial crisis. It seems to me that the solution is to replace people like Mary Schapiro and Adam Storch–not to create yet another government bureau.
But what is the purpose of this useless Obama Boy Scout Appointment?
It wins him the Boy Scout badge of ”I stand for the little guy” in an election year.
Mary Warren, whom I respect and support was quoted as saying that this appointment ” . . .puts a cop on the beat” to protect
protect Americans against unscrupulous lenders by — among other things — eliminating jargon-filled loan documents in favor of plain-English paperwork.”
With all due respect, at the best, this appointment is too little too late. We need a helluva lot more than a “cop on the beat” to undo the damage that Wall Street investors and crooks in Congress have done to our nation ( and by “Wall Street “, I include all members and traders and investors on the NYSE which is literally located on Wall Street and the NASDAQ which is located on Times Square but especially investment in financial institutions and yes, those of you who have money invested in pensions need to look into what you can do towards taking responsibility for that stock ownership as well). We need an army of Independent legislators in BOTH houses of Congress who are not millionaires and who are not invested in Wall Street and who are not beholden to either of the “two” parties with the courage to create legislation to undo the damage that the 1% have done to our nation. We need to all remember that they can only continue to do so with our permission.
One “cop on the beat” is not enough–even if Richard Cordray turns out to be an exception to Obama’s previous appointments and is an honest cop. We need millions of Americans to stand up and replace Congress.