Common Sense Bank Reform

by Jack Wibbe

Senator Sanders, the centerpiece of your campaign is to break up the big banks, but you admitted you haven’t even studied how to do it. You are clueless about the financial sector, the laws, or the powers of the president and the agencies. All you seem to know about Wall Street banks is investing in their stocks, using their money to fund your campaign, pretending you never took their money, and then slamming Hillary for taking the same bank money that you do. So, would you like a do-over? Do you have your bank plan ready NOW? Here, we will help. You can cheat off of Hillary’s plan, which is excellent, and comes in four steps.

First, Hillary plans to keep using Dodd-Frank to pressure the banks: use the new rules for the Fed and the SEC and the consumer protection agency, new rules for credit ratings and securities and hedge fund managers and accountants, rules for mortgage lenders and executive pay and that credit-swap market you deregulated (which actually caused the 2008 crash), and impose risk management for banks.

Second, Hillary plans to continue with the rules Obama imposed after Dodd-Frank, to go after companies that are not banks but are too big, predatory lenders, mid-size banks who take too many risks, banks who aid and abet tax evasion, crooked investment advisers, banks who don’t have crisis management plans, and banks who set up Panama-style shell companies – these are innovations which Hillary helped Obama to launch while you sulked on the sidelines.

Third, Hillary plans to add new rules of her own, some of the strictest ever devised: impose risk fees on the big banks, make it hard for banks to gamble with guaranteed deposits, get strict with hedge funds and investment banks, lean on non-banks that play in the investment game, give plenty of resources to the SEC, put a tax on high-frequency trading, bring transparency to the stock market, impose accountability on executives, reward whistleblowers, close the carried-interest loophole, and punish firms harder when they break the rules.

Fourth, Hillary will reject your idiotic plan to break up the big banks arbitrarily: the big banks aren’t even the biggest banks in the world and they are already downsizing and reducing risk by increasing liquidity. Breaking them up would cause disruption, force people to switch banks, impose fees, cause layoffs, shrink ATM networks, cause banks to dump less-profitable businesses that help consumers, push business to foreign banks, push investment portfolios to risky unregulated sectors, and disrupt the existing Dodd-Frank mechanisms.

So, there’s a whole pile of hints. Senator Sanders, do you FINALLY have your own plan for the fiscal sector? Because once we strip away your non-existent bank plan, your hypocritical attacks regarding Wall Street and Iraq, and all your other attacks and sleazy campaign tricks….you really don’t have a campaign left.


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