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TechnoratiFinancial Firms Fight Giving Government Breakup Powers
The nation's biggest financial firms are racing to Capitol Hill to sway lawmakers against legislation that could give the government broad new powers to break up large firms.
![[The nation's biggest financial firms are racing to Capitol Hill to sway lawmakers against legislation that could give the government broad new powers to break up large firms. (AP Photo/Mark Lennihan, file)]](http://www.commondreams.org/files/article_images/biggestbankslobby.jpg "biggestbankslobby.jpg")
JPMorgan Chase & Co., Citigroup, HSBC, Prudential and MetLife are among the big banks and insurers that have had more than half a dozen meetings to lobby lawmakers in just the last 10 days.
The firms are trying to get out ahead of amendments that Reps. Paul Kanjorski (D-Pa.) and Ed Perlmutter (D-Colo.) are drafting to sweeping financial overhaul legislation under debate in the House Financial Services Committee.
The amendments have not been introduced yet, but their authors aim to give the government greater powers than the Obama administration had originally proposed to limit the size and scope of the country's biggest financial companies. The government might be able to step in even if the firms are not on the verge of failing.
"If we're going to give power to bail out companies when they are too large ... why don't we pre-emptively determine those corporations or financial institutions that are ‘too big to fail,' identify them and then make sure they don't remain too big to fail?" Kanjorski said recently on CNBC.
Big financial companies argue that there is nothing inherent in the size of a company that poses a threat or that should lead the government to impose heavy restrictions.
"We will be active on Capitol Hill, pointing out the unique and important value large financial firms contribute to economic growth and job creation in the United States," said Rob Nichols, president of the Financial Services Forum. "Large institutions provide significant value to customers - in the sheer size of credits they can deliver, in the array of products and services they can provide and their geographic reach - that smaller institutions cannot provide."
The forum represents 18 financial firms that are among the biggest names in the industry.
The big firms have met with the offices of Reps. Kanjorski, Perlmutter, Carolyn McCarthy (D-N.Y.) and Gregory Meeks (D-N.Y.), among others, said a source who attended the meetings.
Financial Services Committee Chairman Barney Frank (D-Mass.) provoked concerns in the financial industry when he said recently that he was working with both Kanjorski and Perlmutter on the amendments. Frank's backing would likely grant the necessary support to pass the amendments.
Frank said he could envision legislation that would let government officials split the commercial and investment banking divisions of banks on a case-by-case basis.
Such a move would effectively reinstate for specific firms the 1933 Glass-Steagall Act that was repealed in 1999. Some critics blame the repeal for allowing financial firms to grow into behemoths that they argue threatened the broader economy and contributed to the financial crisis.
The consumer advocate group Public Citizen is marking the 10th anniversary of the repeal to call for greater regulation of big firms.
"We need not just to reinstate Glass-Steagall, but to infuse its underlying principles throughout the financial regulatory scheme," said Robert Weissman, president of Public Citizen. "Commercial banks should not be in the business of speculation."
Small banks are also encouraging the general aim of Kanjorski's amendment.
"We certainly support the direction he's going," said Steve Verdier, senior vice president for the Independent Community Bankers of America (ICBA), an association that represents 8,000 small banks.
23 Comments so far
Show All"We will be active on Capitol Hill, pointing out the unique and important value large financial firms contribute to economic growth and job creation in the United States," said Rob Nichols, president of the Financial Services Forum. "Large institutions provide significant value to customers - in the sheer size of credits they can deliver, in the array of products and services they can provide and their geographic reach - that smaller institutions cannot provide."
Oh, I love this! Their large size is what makes them so valuable, creating jobs & offering credit: exactly the areas their size has made them so fatally toxic to the rest of the world!
It's way past time to drive a wooden stake through the heart of Corporate Personhood.
CORP IS BORG
Another news I just simply refuse to believe! The corporations would never do that, much like Pfizer would never fudge its research/data. Now, where are those Teabaggers when you need 'em?
And I think it's pretty freakin' hillarious that they have a pic of Citicorp with the article. Those cannibalistic, predatorial, incompetent bastards! Thru the magic of loan repacking and selling, my home mortgage ended up with them at one point. The house was sold 6 years ago, the bastards are still reporting it as open on my credit. Today, I spent over an hour on the phone and spoke to approximately 12 mentally incompetent serfs at Citicorp and NOBODY, I mean NOBODY seems to find the account, know what I'm talking about, know what's going on much less why but they are still reporting it on my credit. Aaaamazing! Next, I'm going to sue the bastards, under the FCRA, I have the grounds because they're reporting wrong information. Small potatoes, I know, but such a level of rampant incompetence, I'd like to know how they're gonna get out of it.
GIVING government the power to break these giant bands of thieves? Who the hell is in charge here?
These greedy bastards have proven they cannot be trusted to regulate themselves and the government needs THEIR permission to be break them into smaller entities?
For God's sake kill this thing before it gets any bigger. The title of this article actually implies that it the corporations who are in charge, not the government.
If America Inc. has its way there will be no limit to how poor we can become.
^ This sez it all.
The document formerly know as the U.S. Constitution acknowledged all rights resided in The People (who form 'the government'). The People, in turn, chose to grant (or withhold) privileges to business through corporate charters.
In a fascist system, these roles are reversed. And, yes, this article's headline, without a trace of irony, sees business's job to rein in 'The People'.
Remind me again how Citigroup can lobby Congress while it is in the midst of Chapter 11 reorganization. They are bankrupt, for Chrissake! What a country! The corruption of our politicians has no limit.
Oh, I can just see this. Oh, the angst! The TV coverage! Then finance cuts back a portion of the payola Congress splashed over them and everybody parts friends, only a tad slimier for wear.
Government should just get out of the way and let them fail. No bailouts or anything for them. Just leave them to collapse. Stupid government !
Or government should just get out of the way and let them move into the White House. It'll be much easier for us serfs to identify who it is exactly that's screwing up, without a middle man
That one's even better. Thanks.
"Financial Firms Fight Giving Government Breakup Powers", who in the name of all that stinks like ------ are these parasitic bozos to speak of 'giving government powers'. The only role these lice have is to make all the money they can legally; and, to say 'Yes, Sir and No, Sir' when required to speak by the People.
They also have a tendency to say things like: "Here's $200K for your next campaign. Now, let's talk about this silly new bill coming up for a vote about our banking practices, which are very "above board" as you well know!"
Considering how the obscenely huge financial firms have been more destructive and irresponsible than the huge trusts of the Robber Baron era that provoked the Sherman Anti-Trust Acts; it is only a matter of simple logic that the Federal government have the power to break them up.
It is a perverse testament to the lobbyist clogged reality of the Beltway that this is such a struggle.
"Financial Firms Fight Giving Government Breakup Powers".
Fighting may be a bit of a strong term to use here. I think "dangling a big donation check in front of congressmen" might be better, or just cut to the chase and say they'll bribe their way out of being broken up.
Lol, I think you may have come up with a new logo for the democratic party. An ass with a stick tied to the top of its head dangling a check in front of its eyes (the check being the modern vision of the old, out dated carrot.)
I have an even better idea for the stick which entails the rear of the ass or, shall we say, the ass' ass
That is PERFECT!
"'We will be active on Capitol Hill, pointing out the unique and important value large financial firms contribute to economic growth and job creation in the United States,' said Rob Nichols, president of the Financial Services Forum."
I wonder if anyone bothered to ask of Mr. Nichols "WHAT economic growth and job creation?"
Wouldn't having more and smaller banks create more jobs in the banking industry?
Funny, our country was always able to find financing for large-scale projects before the emergence of the mega-banks.
q
More smoke and mirrors.
There was no economic emergency.
It's theft in broad daylight.
The white hatted cavalry rides in to plug the visible breach,
while the muskrats dig a dozen tunnels out of sight.
It's all a ruse.
Just as Obama Inc. pressured Democrats in Congress to vote for more Ir-Af-Pak War funding, Obama Inc. will be pressuring Congress to vote against any meaningful financial industry regulation.
Phone, e-mail or write your Democratic Party Senators and Congressperson at least once per week and remind them that you will be sitting out their next election unless they take an active role in reinstating all of the New Deal financial industry regulations plus meaningful revisions that address financial "products" created after the original New Deal regulations.
I truly wish I could believe that your suggestion could effect change, but I don't. They couldn't care less what you or I think. The u.s. government isn't broken, it's rotten to the core, always has been. Change to me means change governments.
VOTE THIRD PARTY!
If you loose to Republicrats, it won't matter anyway, since both arms of THE Party are owned by MIC and Wall Street. If we all throw a wrench in their system by rejecting their stooges, they will pull back to center.
TJ
f"All tyranny needs to gain a foothold is for people of good conscience to remain silent." - Thomas Jefferson