On Tuesday, Massachusetts junior Senator Elizabeth Warren rebuked GOP plans to excoriate protections afforded the American people by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). Warren, in a Senate Banking Committee hearing, told members that a bill being presented by U.S. Rep. Jeb Hensarling (R-TX), chairman of the House Financial Services Committee served to placate the “poor Wall Street Banks” who have suffered too much under Dodd-Frank.
“If unity means a marriage between Donald Trump‘s toxic racism and Jeb Hensarling’s Wall Street giveaways, then I think they’d be better off with Division.” – Sen. Elizabeth Warren on GOP unity
The senator, floated as a possible Vice Presidential candidate, who has repeatedly said she was happy with her job in the Senate, has adopted a key role in the election, denouncing GOP policy and taking on their candidate, Donald Trump. Warren had no issues with pushing back against the party, as Hensarling met with Trump on Tuesday. “It’s clear that Congressman Hensarling and his fellow Republicans think that the poor Wall Street banks have suffered under the new rules and it’s time for them to return to the good old days before the 2008 crisis when these banks could run wild,” Warren said.
A return to pre-crash and recession deregulation under Hensarling’s plan amounted to a “wet kiss” for the Wall Street banks, according to the Massachusetts senator. Warren attacked Hensarling’s idea that his plan would end “too big to fail” through repeal of oversight. When asked if taking away the Federal Stability Oversight Council (FSOC) rights and abilities to identify what institutions were too big to fail was a good way to eliminate too big to fail institutions, Prof. Heidi Mandanis Schooner, Columbus School of Law answered, “No. I don’t. What we saw in the crisis was that our focus was too narrow. Prior to 2008, we focused our credential regulation, basically on the solvency of commercial banks.” Schooner went on to say that eliminating oversight and designation would not only leave them unchecked, but would not make our financial system safer.
Hensarling, making the rounds with major networks, after meeting with Trump, blamed Dodd-Frank for the American economy that was “still limping along at 2 percent economic growth.” Hensarling, who served on the TARP oversight panel, had a list of economic down-factors that he attributed to the Act. Among them were the recent non-existent jobs report, stagnant wages, lack of savings and financial stability for the American family.
“They said that it would fix too big to fail, instead it enshrined, too big to fail.” Rep. Jeb Hensarling, (R-TX)
“Hensarling, in an interview with CNBC, said of Dodd-Frank, “They said that it would fix too big to fail, instead it enshrined, too big to fail.” Hensarling’s plan was based on an influx of Capital to the banking system where well-capitalized institutions had less regulation.
Hensarling’s reasoning takes the country back to the days before the 2008 financial plummet where unregulated nepotism and cronyism led to financial institution failure and a nationwide mortgage crisis.
Warren railed against his plan that would subject any new major rule to a second vote by Congress, “effectively giving Congressional Republicans the ability to block any rule that they or their friends on Wall Street don’t like. Schooner agreed.
“That is not what the American people are looking for,” Warren said. “And it is a path to ruin both for our economic system and for our country.
Warren, whose policy temperament mirrors that of U.S. Sen. Bernie Sanders, did not endorse either Sanders or Hillary Clinton as the Democratic nominee for president. As the seven-state primary wound down, questions as to a Warren Vice Presidency remained. She is expected to endorse former Sec. of State Hillary Clinton in the coming weeks.
This post originally appeared at Examiner.com on June 09, 2016.