At a hearing on Capitol Hill last week, lawmakers from both parties expressed interest in exempting small banks and credit unions from new financial rules, reported the Wall St. Journal.
But there must be a limit, warned two of the committee’s most pro-consumer voices:
Sens. Sherrod Brown of Ohio, the top Democrat on the powerful Senate Banking Committee, and Elizabeth Warren of Massachusetts drew a line in the sand: Legislation targeted at helping truly small lenders is fine, but bills that scale back rules intended for larger, riskier banks have no chance.
“The big banks are going to keep using the small banks as a cover for their special rollbacks… we shouldn’t fall for that trick,” Ms. Warren warned her colleagues.
Read the full WSJ article here.
AS Warren Buffett was quoted, “The banks should stay focused on lending money” and not on derivative trading and other risky leveraged activities which almost brought down the world’s entire financial system in 2008. The threats to our system through the banks, Koch Brothers, and other large financial concerns have not been remedied and the danger to our financial system looms larger than in 2008 according to many analysts.
Thank you,
Dr. Larry Webster