Brown and Shaheen Too Cozy With Wall Street Campaign Funders;
Voted for Failed Dodd-Frank Law
The too-big-to-fail Wall Street banks whose reckless practices nearly brought down the world financial system are bigger and riskier than ever and U.S. taxpayers are still on the hook for the next bailout, according to a report released yesterday by financial regulators.
The 2010 Dodd-Frank law protected the eleven largest banks from being broken up and required them to submit plans by which they could be safely liquidated in bankruptcy under another bank failure or financial meltdown scenario. Yesterday, the Federal Deposit Insurance Corporation and the Federal Reserve Board, charged with evaluating these plans, flunked all eleven plans. “[These plans] demonstrate little ability to cope adequately with failure without some form of government support. The economy would almost surely go into crisis,” said Thomas Hoenig, FDIC Vice Chairman. Dodd-Frank failed to work, and in fact we are more vulnerable to an economic collapse than ever.
“Washington career politicians Scott Brown and Jeanne Shaheen are captives of their Wall Street campaign funders and voted for the failed Dodd-Frank law,” said Jim Rubens, Republican candidate for U.S. Senate. “Brown and Shaheen voted to stick taxpayers and the entire US economy with the tab for the next financial meltdown.”
Rubens further stated: “While Dodd-Frank fattened Brown and Shaheen’s Wall Street campaign funders, it hurt New Hampshire home buyers and New Hampshire’s small business economy. Caught in the net of 30,000 pages of pending Dodd-Frank regulations, New Hampshire’s community banks and their small business and home buyer customers are less able to make and obtain loans. Wall Street banks can afford the $1,000 an hour lawyers to manipulate the regulatory process; New Hampshire’s small business community cannot.
“It’s time for a Senator who will unconditionally take sides with New Hampshire and act in the interest of a prosperous and stable economy and middle class jobs here in New Hampshire.”
Scott Brown used his influence as former U.S. Senator, not to protect taxpayers, but to allow Wall Street banks to continue operating with dangerously high leverage ratios, while collecting almost $3.4 million in Wall Street campaign cash. During his campaign here in New Hampshire, Brown refused to give back money he tookfor giving a speech at a Las Vegas hedge fund convention.
In his press statement, FDIC’s Hoenig notes that, compared with 2008 prior to the financial meltdown, the big banks are “larger, more complicated, and more interconnected … and continue to combine commercial banking, investment banking, and broker-dealer activities”; carry 30 percent more potentially disruptive and difficult to unwind cross-border derivatives; continue to rely for capital on volatile wholesale funding sources; and remain “excessively leveraged” with capital ratios nearly twice those of conventional banks and nearly as high as prior to the meltdown.