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U.S. PIRG Consumer Blog
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April 26, 2009
Banks not contrite-paying big bucks again; seeking to kill hill reforms
In today's New York Times, Louise Story reports that "workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began." Funny, the bonuses don't seem to me to be based on performance. I hope Congress takes a close look. Meanwhile, tomorrow's Congress Daily reports that "the banking industry... -- while it might be on the ropes -- still has enough clout to stymie" priority credit card and foreclosure relief reforms. The story repeats conventionable wisdom and underestimates the impact of President Obama's efforts to fix the financial system. But it is absolutely true that the banks will try to kill the credit card reforms in the Senate where they have spent over a year delaying critical foreclosure reforms that would help taxpayers and neighborhoods by helping homeowners stay in their homes making payments. The Senate "kill bills" tactic is taught in corporate special interest lobbyist first grade--it isn't rocket science. And it should also come as no surprise to readers that bank campaign donations and lobbying spending are both UP despite loans and compliance with fair marketplace practices being DOWN. Consumers need to contact Congress. Credit card and foreclosure reforms are critical to jump-starting the economy and critical to fairness. They're being opposed by an overpaid and bloated financial sector whose failures led to a worldwide financial crisis. Congress only listens to them -- despite their moral and fiscal bankruptcy -- because they are there every day. Making donations doesn't hurt either. But Congress will also listen to you; and it will listen to President Obama. The power of the public and the president can trump the special interests.
Posted by Ed Mierzwinski at April 26, 2009 10:48 AM
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