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Regulators Exist To ‘Serve The Banks,’ Next House Finance Chairman Declares

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Regulators exist to ‘serve the banks,’ next House finance chairman declares

By Sahil Kapur

'Alabama Republican Spencer Bachus, the incoming chairman of the House banking committee, suggested Congress and federal regulators should play a subservient role with banks.

"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," Bachus told The Birmingham News in an interview.

The Republican leadership last week designated Bachus the next chairman of the powerful House Financial Services Committee, which is tasked with overseeing banks, financial markets, housing and consumer credit.

Democrats characterized the remark as a Freudian slip, nicknaming the Alabaman "Big Bank Bachus" and claiming the new Republican-controlled House will put the interests of financial institutions ahead of the American public.

"Congressman Spencer 'Big Bank' Bachus has given Americans a startlingly honest answer about the House Republican agenda – do whatever is good for the big banks and Wall Street special interests, rather than what’s good for hardworking Americans,” said Jesse Ferguson, a spokesman for the Democratic Congressional Campaign Committee.

Bachus later told the Birmingham News he merely meant Congress shouldn't micromanage banks.

The congressman from Alabama's 6th district has throughout his 18-year House career raised millions from financial interests, including over $1 million from commercial banks alone, according to the Center for Responsive Politics.

He has received over $800,000 from the real estate industry, $700,000 from securities and investment firms, and $415,000 from credit companies -- all of which he will have extraordinary influence over as banking committee chair.

Bachus was an important negotiator for the $700,000 billion Troubled Asset Relief Program (TARP) of 2008 -- often derided as the "bank bailout" -- which angered the public but also prevented a widespread collapse of the financial system. It passed with wide bipartisan support.

The outgoing chairman, Rep. Barney Frank (D-MA), played an instrumental role in developing sweeping financial regulatory reforms enacted by President Barack Obama in July'

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Thanks. Bachus is a problem.

I think one of the key relationships in Congress next year will be he and Ron Paul. Seems likely that there was some sort of back door deal done between the two regarding the Fed, to smooth Paul's appointment.

When Paul was recently asked if he were going to issue subpoenas to the Fed for more information, he indicated that this would have to be agreed by the ranking members (meaning Bachus, I read). This will hamstring Paul.

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Thanks. Bachus is a problem.

I think one of the key relationships in Congress next year will be he and Ron Paul. Seems likely that there was some sort of back door deal done between the two regarding the Fed, to smooth Paul's appointment.

When Paul was recently asked if he were going to issue subpoenas to the Fed for more information, he indicated that this would have to be agreed by the ranking members (meaning Bachus, I read). This will hamstring Paul.

Yeah I'd have too agree, but at least Ron will get a bigger public stage too express idea's, which has to be a good thing.

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The FSA clearly thought their first priority was to increase business not necessarily regulate it. Although little mentioned Howard Davies laid the foundation for why the FSA was so useless. When he was Chairman of the FSA in 2000

Regulators will come under ever increasing pressure to show that the package they offer to investors is worth paying for. My own view is that the package in London is worth paying for. Indeed, the evidence of growing business volumes transacted through London and the number of applications for new authorisations suggests that the balance of costs and flexibility we are offering is reasonably attractive to a lot of businesses, and a lot of investors.

http://www.fsa.gov.uk/Pages/Library/Communication/PR/2000/063.shtml

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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