Wednesday, May 30, 2012

Romney Economic Adviser Says Romney Plans To Undermine Consumer Protections In Wall Street Reform Law

By Pat Garofalo/Think Progress
Mitt Romney, who last night secured the Republican presidential nomination with his win in Texas’ primary, has already made clear his desire to repeal the Dodd-Frank financial reform law, enacted in response to the financial crisis of 2008. But according to Glenn Hubbard, one of Romney’s economic advisers, even if Romney can’t get rid of the law wholesale, he’d still like to dismantle important aspects of it:
For example, he said Mr. Romney would propose:
– replacing the new system for dismantling failing financial companies that was created as part of the 2010 Dodd-Frank financial overhaul law with a new system, which he declined to specify.
– a new system of consumer financial regulation that either moves the new Consumer Financial Protection Bureau outside of the Federal Reserve or breaks up the new agency and places the powers within existing financial regulators.
That Romney would break up and disperse the Consumer Financial Protection Bureau’s duties amongst existing financial regulators shows just how little he cares to address the causes of the 2008 financial crisis.
After all, it was the fact that consumer protection responsibilities were dispersed throughout the regulatory system — and were no regulator’s primary responsibility — that allowed banks to get away with so much pernicious behavior. The creation of the CFPB was meant to address this problem, giving consumers at least one regulator explicitly tasked with looking out for their interests.
Romney, of course, has been raking in money from Wall Street interests who fought the creation of the Bureau tooth and nail. Back in January, Romney called the Bureau the “mostpowerful and unaccountable bureaucracy in the history of our nation” and falsely claimed that it is “headed by a powerful and unaccountable bureaucrat with unprecedented authority over the economy.”

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