Instead of “To Serve Man”, we should call this new webpage design “To Serve Banks.”
Here’s to a new era: The new Committee on Financial Services Webpage. I took a snapshot of the front page:
Spencer Bachus, the new Financial Services Committee chair, recently said “in Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks”, and man does this webpage put that corporatist vision to the test.
I was surprised to see “The Democrats Bailout Bill” up front, since Bachus famously voted in favor of the TARP bank bailout bill, Emergency Economic Stabilization Act of 2008, before voting against financial reform – an honest man, he really does believe Washington is there to serve the banks! – so why not take ownership? But by Bailout Bill he means the Dodd-Frank Act.
If I was a honest Republican staffer who handled that webpage, and wanted to do my part to get real information out to interested people, I’d link to this excellent recent overview by the Cleveland Federal Reserve of the mechanism of the Orderly Resolution Authority implemented in Dodd-Frank. The House webpage is already plastered with murmurs of permanent bailouts and bankruptcy as the only alternative, not even mentioning that the enter liquidation mechanism is set up with bankruptcy as the default, only overruled in certain circumstances with votes and judicial review – a move designed to address this criticism. The bill is specifically designed so that, in the words of the Cleveland Fed: “Creditor protections in orderly resolution are limited to the requirement that unsecured creditors can receive no less in a Title II resolution than they would have received under a Chapter 7 bankruptcy proceeding.”
Instead of meaningful criticism we get hackery and, my favorite, a call for “Meaningful SEC Reforms.” Reforms which evidently mean defunding and suffocating the institutional powers of the SEC, same as was done by the GOP in the 1990s.