Understanding Dodd’s financial “reform” boot-to-the-face

Along with giveaways and loopholes for many of his biggest contributors (more here), outgoing corruptocrat Chris Dodd’s financial “reform” boot-to-the-face is loaded with social reform and wealth redistribution. This article (from Investor’s Business Daily) details the slimier aspects hidden in the 2000 pages of bureaucratese bullshit.

Much of the 2,000-page draft of the Democrats’ finance reform bill could have been written by Acorn, and probably was. It has more to do with “civil rights” than consumer protection.The devil is in the details of the monstrous new regulatory package, which Democrats hope to pass early next month. They reveal plans to reallocate credit and capital to the Democrats’ political base, while empowering race racketeers like Acorn with slush funds and advisory board seats.

The “Restoring American Financial Stability Act of 2010” is, in fact, a massive redistribution scheme camouflaged as reform. Far from reforming easy-credit practices, the bill encourages more of the same reckless, politically mandated lending that brought down the entire financial system in the name of “affordable housing.”

Yes, the bill gives Treasury the power to liquidate banks that pose a threat to financial stability. But it essentially exempts minority-owned banks and those approved by Acorn-style urban organizers.

“The orderly liquidation plan shall take into account actions to avoid or mitigate potential adverse effects on low- income, minority or underserved communities affected by the failure of the covered financial company,” it says.

So now the government will protect “too big to fail” business cronies and “too PC to fail” protected class cronies. Nice. I suppose that the rest of us who don’t fall into either category can go to hell. Of course, this bill wouldn’t be complete without laying a taxpayer sacrifice on the altar of “diversity.” UGH…

The bill mandates placement of a diversity czar in each federal financial agency — including the Fed and its 12 regional banks.

Establishing a so-called Office of Minority and Women Inclusion within each agency is the idea of Democratic Rep. Maxine Waters, a Congressional Black Caucus leader and conferee.

According to her amendment to the bill, “Each agency shall take affirmative steps to seek diversity in the workplace of the agency, at all levels of the agency,” including:

• Recruiting at “historically black colleges and Hispanic-serving institutions.”

• Recruiting in urban communities.

• Placing ads in African-American and Spanish newspapers.

• “Partnering with organizations that are focused on developing opportunities for minorities.”

Waters’ proposed office will be led by presidential appointees and will advise the head of each agency on minority hiring and lending — giving it unprecedented influence, especially relating to the Fed and monetary policy.

Each agency, in turn, is required to report to Congress detailed information describing the actions it took to diversify its staff and contract with minority-owned firms. Which means they’ll do what their diversity officers advise. No official — particularly no regional Fed bank president — wants to be dragged before Barney Frank’s panel and accused of racism.

Sweet – another layer of bureaucracy within an already Byzantine bureaucracy. That should “reform” things nicely. And it only gets better:

And we haven’t even gotten to the Consumer Financial Protection Bureau, the huge new bureaucracy whose mission, among other things, will be to ensure that “traditionally underserved consumers and communities have access to lending, investment and financial services.”

The bureau will wield a big stick in the form of an Office of Fair Lending and Equal Opportunity, whose role will be enforcing “nondiscriminatory access to credit.” It will have the power to subpoena witnesses and documents, as well as issue temporary orders requiring banks to cease and desist any practice.

They will add to and work with HUD’s and Justice’s own diversity cops. The bureau adds a massive new layer of bureaucracy to the four federal agencies already enforcing fair-lending compliance under the onerous CRA. Banks will now be under enormous political pressure to bend underwriting rules for protected classes with iffy credit.

Does this sound like financial “reform” to you? It sounds like a double down of the same failed policies that created the current economic crisis to begin with – only with even more Jabba the Hut bureaucratic inertia thrown in. This bill is a toxic brew that has spectacular FAIL written all over it.

I ask again: What f**king planet are these people from???


2 Responses to “Understanding Dodd’s financial “reform” boot-to-the-face”

  1. […] here) for Dodd’s big business cronies (more here) to social reform and wealth redistribution (more here), even Dodd himself doesn’t know how it’s all going to work (more here). With more […]

  2. […] page monstrosity creates multiple new layers of bureaucracy and smothering government control. (more here) It also does nothing to reign in Fannie and Freddie – the real culprits in the financial […]

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