GOP Goes Solo on Financial Reform

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Sen. Richard Shelby (R-AL), whose financial-reform negotiations with Senate banking committee chair Chris Dodd (D-CT) broke down recently, is crafting a Republican version of financial reform with other GOP senators on the banking committee, Bloomberg reported today. The ranking member on the banking committee, Shelby had previously led financial-reform talks with Dodd, but those talks ended with an “impasse” between the two lawmakers. (Dodd has proceded with the talks with Sen. Bob Corker (R-TN) since the schism.) Some attributed the breakdown to Shelby’s opposition to a standalone Consumer Financial Protection Agency that would oversee financial products, like subprime mortgages, and would consolidate consumer protection in a single independent agency.

Shelby’s new, GOP-only reform efforts, Bloomberg reported, would create a consumer protection division within an existing bank regulator, not a standalone agency. Shelby aides also told Bloomberg that the senator’s version of financial reform would protect taxpayers from the cost of unwinding too-big-to-fail financial institutions. Also getting a look in Shelby’s financial reform would be a consolidated bank regulator, an idea that’s gaining steam in Dodd’s financial-reform plans as well. Aides to Shelby said a lot of the details have yet to be ironed out, but that talks had been ongoing for a couple of months now.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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