Republicans Set to Derail Financial Reform

Bank of America is ecstatic about Republicans taking control of the House of Representatives.

"We had been disappointed with a number of legislative outcomes with the past Congress, and so we look forward to better outcomes with this Congress," said Peter Garuccio, a spokesman for the American Bankers Association in Washington.

In April of this year, Mitch McConnell and John Cornyn came to Wall Street and asked for more campaign contributions to the Republican Party. Bank of America spokesman Garuccio it would be huge if Republicans can repeal Durbin Amendment. The amendment barred credit card fees to retalers.

Eric Cantor has vowed to cut funding so regulations can not be properly enforced.

CANTOR: The House has the power of the appropriations process and the leverage that comes with that essentially puts us in a position to deny the administration funding for promulgating the regulations that carry through the missions of these two bills…And that’s what the American people are expecting. They want us to focus on job creation first they results.

BARTIROMO: So that’s what you’re going to do? You’re going to deny funding then? That’s one of your tools in the toolbox, deny funding?

CANTOR: Well, it is a check that this public is looking for on this runaway agenda of this administration. They don’t want to see any more spending, especially if it promotes policies that kill jobs. That’s what you’ve got, both with the Obamacare bill and the Dodd-Frank bill.

Cantor claims the Dodd-Frank bill is a job killer. How many jobs did Wall Street created when mortgage-backed securities, credit default swaps and subprime loans all blew up?





Not a single job was created the year of the Wall Street meltdown. Cantor and other Republicans (and to a lesser extent Democrats) ignore the Wall Street flash crash on May 6th of this year. U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission released a joint report to the Senate. The report illustrates how unstable the market still is.

Between 2:40 p.m. and 3:00 p.m., approximately 2 billion shares traded with a total volume exceeding $56 billion. Over 98% of all shares were executed at prices within 10% of their 2:40 p.m. value. However, as liquidity completely evaporated in a number of individual securities and ETFs,11 participants instructed to sell (or buy) at the market found no immediately available buy interest (or sell interest) resulting in trades being executed at irrational prices as low as one penny or as high as $100,000. These trades occurred as a result of so-called stub quotes, which are quotes generated by market makers (or the exchanges on their behalf) at levels far away from the current market in order to fulfill continuous two-sided quoting obligations even when a market maker has withdrawn from active trading.

Republicans argue for no regulation. That is a fiscal policy only an anarchist could get behind.