AFR Warns About Weakening Efforts In Disguise
FOR IMMEDIATE RELEASE
DATE: May 14, 2010
Washington, DC – After failing in attempts to overtly weaken the bill, opponents of Wall Street reform are now looking to usurp the bill in anyway possible. Americans for Financial Reform opposes any stealth attacks – including attempts to weaken state oversight for consumers and prevent actual oversight of shadow markets from being enforceable – and is working to beat back the following harmful amendments disguised as reform efforts:
Vitter #4003: The Vitter Shadow Bank Loophole is an attempt to prevent the oversight of non-bank financial companies that could pose a threat to our economy. The loophole would exempt bailed-out shadow banks like GE Capital ($50 billion in FDIC bailouts) and would allow an AIG to buy up any regular American company that accounted for 15% of its total revenues and escape oversight. A vote for this amendment risks American jobs and keeps us stuck in the bailout era.
Snowe-Pryor Amendment #3883: This is an attempt to undermine the independence of consumer protection by making any rules subject to oversight by other agencies. This would slow down any crackdown on scams and abuses and the actual impact of this amendment runs counter to small businesses’ interests to keep their business running.
Gregg Amendment #3865: The fuse that lit the economic meltdown in the fall of 2008 was the $600 trillion, unregulated and opaque swaps market, dominated by the world’s largest banks. This amendment would allow the big banks to continue gambling with our money under their roof and create a risk to the whole financial system.
Heather Booth, Director, Americans for Financial Reform: “We are calling these amendments what they are – wolves in sheep’s clothing. To many they may seem like harmless changes, but we know they are efforts to undermine Wall Street reform and take any teeth out of the bill. This is unacceptable and we urge all Senators to defeat these proposals. We will continue to work to keep this bill as strong as it is and will look to amendments, such as the Merkley-Levin ban on proprietary trading, to strengthen the bill, ensuring Wall Street banks are held fully accountable.”Tags: cfpb, consumer financial protection bureau, Derivatives, Gregg, Pryor, S. 3217, Senate, senate derivatives, senate misc, Snowe, Snowe-Pryor, swaps, The Restoring American Financial Stability Act of 2010, Vitter