The Treasury Department has released their report on financial regulations they want to scrap. Spoiler alert: the Wall Street sharpies who Trump put in charge of our economy, who made fortunes on both ends of the housing collapse, think pretty much all regulations on banks, including home lenders, should go.
This report was driven by Craig Phillips, who packaged and sold billions in bundled home loans for Morgan Stanley before he moved over to hedge fund giant BlackRock. His boss is former Goldman Sachs executive Steven Mnuchin, who made his bones by aggressively foreclosing on homeowners at IndyMac after the 2008 financial meltdown.
These guys think we should go a lot easier on the poor, poor megabanks, who’ve suffered enough, and toughen up on the real culprits — middle-class families.
First, they want to make the financial system less safe for consumers by repealing the Volcker rule, so banks can gamble with their depositors’ money. They also want to ease up on the “stress tests” put in place after 2008 to make sure big banks don’t fail and take the whole economy down with them.
Second, they want to defang the Consumer Financial Protection Bureau (CFPB), the only agency that serves as a financial watchdog for the public, by making it basically impossible for the CFPB to either write rules or enforce them.
Third, they take us back in time. In a flashback to their earlier lives on Wall Street, Phillips and Mnuchin want to make it easier for banks to write fraudulent mortgages, then easier to foreclose on people by scrapping the qualified mortgage rules, and stop new rules on mortgage servicing from taking effect.
There’s one provision stuck in this plan…