January, 04 2017, 11:00pm EDT
Consumer Bureau Under Attack
New Congress Wants Wall Street to Regulate Itself
Statement by Mike Litt, Consumer Advocate, at U.S. PIRG about expected attacks against the Consumer Bureau in the 115th Congress
Several members of Congress wanted to regulate themselves for ethics violations; they reversed course when citizens everywhere complained. But now, they also want Wall Street to regulate itself. Have they forgotten? That already ended badly, just 8 short years ago. Weakening the Wall Street watchdog would be a big mistake.
We are seeing renewed attacks against the Consumer Financial Protection Bureau in the 115th Congress - even after an election that was largely about a system rigged against the average American. Congress should stand up to these attacks and side with consumers.
The 5 year old Consumer Bureau was created by Congress after the Great Recession to protect consumers and reduce the risk of another economic collapse. It is the poster child of a government agency that is actually working and not corrupted by the industry it is tasked with regulating. That is by design, not by accident - the Consumer Bureau was set up to avoid the trappings of other agencies that favor industry interests over the public. The main attacks against the Consumer Bureau, if carried out, would open it up to gridlock or corruption by changing the agency's leadership structure, starve the agency by changing its funding source, or keep the rules rigged against consumers.
Since 2011, the Consumer Bureau has served as a wildly successful and accountable watchdog over unfair & greedy practices by companies offering financial products like mortgages, student loans, and credit cards. It has implemented fair rules of the road that have evened the playing field for responsible consumers and businesses alike. It is protecting students, seniors, service members and the rest of us too.
The CFPB was in the news a few months ago for its record $100 million penalty and consumer restitution against Wells Fargo for millions of fraudulent consumer accounts. But this was just the tip of the iceberg - the agency has also returned nearly $12 billion to over 27 million consumers from many other companies that have broken the law. Additionally, the CFPB's website hosts a complaint database that has processed over 1 million complaints, and it provides educational resources to make important financial decisions.
The CFPB has also been accountable to the public, including with a small business review panel, 4 advisory boards, 36 public town halls and field hearings, and 61 visits by senior officials to testify before Congress.
The attacks against the Consumer Bureau serve the big Wall Street banks and other financial companies like payday lenders. In fact, the financial industry just spent $2.3 million a day, totaling over $1.4 billion during the recent election cycle, to buy influence in Washington and re-rig the rules in their favor.
If enough Americans contact our members of Congress, we can make sure our voices don't get drowned out by the big Wall Street banks and other financial companies.
U.S. PIRG, the federation of state Public Interest Research Groups (PIRGs), stands up to powerful special interests on behalf of the American public, working to win concrete results for our health and our well-being. With a strong network of researchers, advocates, organizers and students in state capitols across the country, we take on the special interests on issues, such as product safety,political corruption, prescription drugs and voting rights,where these interests stand in the way of reform and progress.
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Watchdogs' Database Details Right-Wing Efforts to Sway US Supreme Court
"Supreme corruption demands supreme transparency," said one campaigner behind the new effort.
Apr 18, 2024
A trio of progressive watchdog groups on Thursday unveiled a new database detailing the "troubling connections" between the U.S. Supreme Court's right-wing justices, the conservative organizations that have intervened in cases before the court, and the wealthy donors funding them.
Take Back the Court, Revolving Door Project, and True North Research published the database at SupremeTransparency.org, which "shines a spotlight on the complex web connecting justices to powerbrokers and the organizations that those powerbrokers fund, lead, and are otherwise linked to."
The watchdogs found that nearly 1 in 7 amicus briefs filed during the 2023-24 Supreme Court term were lodged by at least one powerbroker-affiliated organization. This affects 32 different cases before the court.
"The current U.S. Supreme Court has gone rogue."
For example, in Moore v. United States—in which the Supreme Court could preemptively ban or limit wealth taxes—half of all amicus briefs were filed by groups affiliated with right-wing powerbrokers.
In Loper Bright Enterprises v. Raimondo, groups funded by billionaire industrialist Charles Koch want to scupper the Chevron deference, a 40-year precedent under which judges defer to the legal interpretations of federal agencies if Congress has not passed any laws on an issue. Powerbroker-affiliated organizations have filed more than one-third of the amicus briefs seeking to overturn the Chevron doctrine.
"Far too often people with insidiously close ties to justices like Clarence Thomas and Samuel Alito, such as Harlan Crow and Paul Singer, signal their interest in the outcome of cases by funding, leading, or influencing organizations that file amicus briefs," Revolving Door Project executive director Jeff Hauser said in a statement.
"There is just as much of a conflict of interest when a justice hears a case involving a benefactor as a named party and one in which the person who illicitly enabled their luxurious lifestyle is 'merely' similarly situated to one of the parties," Hauser added.
According to SupremeTransparency.org:
The current U.S. Supreme Court has gone rogue. The right-wing justices that make up the court's supermajority frequently toy with precedent and the rule of law to issue opinions that not only defy the will of a majority of Americans, but also rewrite constitutional principles, overturn widely respected legal precedents, and gut longstanding rules that protect the public interest.
In just the 2021 and 2022 Supreme Court terms alone, the court overturned Roe v. Wadeafter 49 years; gutted both the decades-old Clean Air Act and Clean Water Act; overturned a 100+ year old gun safety law; eroded the National Labor Relations Act (adopted as part of New Deal reforms to protect workers); broke with their own procedures regarding standing to sue in order to block student debt relief; and reversed decades of precedent to end the decadeslong practice of race-conscious college admissions policies that promoted diversity and redressed discrimination. But this radically reactionary court and its radically reactionary justices aren't acting alone.
"Supreme corruption demands supreme transparency," said Take Back the Court president Sarah Lipton-Lubet. "It's no secret that the many of the rich benefactors cozying up to the conservative justices are the same people who fund right-wing organizations with business before the court."
"But too often, stories about the Supreme Court don't connect these dots—and as a result, they leave us with an incomplete picture," she continued. "The truth is right-wing powerbrokers are seemingly paying to play; they're funding groups that are weighing in on court cases even as they buy access to the justices who will rule on those cases."
"It's just one of the ways our Supreme Court is deeply, fundamentally broken," Lipton-Lubet added. "And it's a reminder of how urgent and necessary it is that we reform this corrupt court."
Last year, the Supreme Court adopted a Code of Conduct that contained few new rules, no enforcement mechanism, and was widely panned as a toothless public relations stunt. Bolder proposals for reforming the high court include term limits and increasing the number of justices.
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"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," a new study's lead author said.
Apr 18, 2024
The climate crisis will shrink the average global income 19% in the next 26 years compared to what it would have been without global heating caused primarily by the burning of fossil fuels, a study published in Nature Wednesday has found.
The researchers, from the Potsdam Institute for Climate Impact Research (PIK), said that economic shrinkage was largely locked in by mid-century by existing climate change, but that actions taken to reduce emissions now could determine whether income losses hold steady at around 20% or triple through the second half of the century.
"These near-term damages are a result of our past emissions," study lead author and PIK scientist Leonie Wenz said in a statement. "We will need more adaptation efforts if we want to avoid at least some of them. And we have to cut down our emissions drastically and immediately—if not, economic losses will become even bigger in the second half of the century, amounting to up to 60% on global average by 2100."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were."
Put in dollar terms, the climate crisis will take a yearly $38 trillion chunk out of the global economy in damages by 2050, the study authors found.
"That seems like… a lot," writer and climate advocate Bill McKibben wrote in response to the findings. "The entire world economy at the moment is about $100 trillion a year; the federal budget is about $6 trillion a year."
This means that the costs of inaction have already exceeded the costs of limiting global heating to 2°C by six times, the study authors said. However, limiting warming to 2°C can still significantly reduce economic losses through 2100.
"This clearly shows that protecting our climate is much cheaper than not doing so, and that is without even considering noneconomic impacts such as loss of life or biodiversity," Wenz said.
The damages predicted by the study were more than twice those of similar analyses because the researchers looked beyond national temperature data to also incorporate the impacts of extreme weather and rainfall on more than 1,600 subnational regions over a 40-year period, The Guardian explained.
"Strong income reductions are projected for the majority of regions, including North America and Europe, with South Asia and Africa being most strongly affected," PIK scientist and first author Maximilian Kotz said in a statement. "These are caused by the impact of climate change on various aspects that are relevant for economic growth such as agricultural yields, labor productivity, or infrastructure."
However, Wenz told the paper that the paper's projected reduction was likely a "lower bound" because the study still doesn't include climate impacts such as heatwaves, tropical storms, sea-level rise, and harms to human health.
Unlike previous studies, the research predicted economic losses for most wealthier countries in the Global North, with the U.S. and German economies shrinking by 11% by mid-century, France's by 13%, and the U.K.'s by 7%. However, the countries set to suffer the most are countries closer to the equator that have lower incomes already and have historically done much less to contribute to the climate crisis. Iraq, for example, could see incomes drop by 30%, Botswana 25%, and Brazil 21%.
"Our study highlights the considerable inequity of climate impacts: We find damages almost everywhere, but countries in the tropics will suffer the most because they are already warmer," study co-author Anders Levermann, who leads Research Department Complexity Science at PIK, said in a statement. "Further temperature increases will therefore be most harmful there. The countries least responsible for climate change, are predicted to suffer income loss that is 60% greater than the higher-income countries and 40% greater than higher-emission countries. They are also the ones with the least resources to adapt to its impacts."
Wenz told The Guardian that the results were "devastating."
"I am used to my work not having a nice societal outcome, but I was surprised by how big the damages were. The inequality dimension was really shocking," Wenz said.
Levermann said the paper presented society with a clear choice:
It is on us to decide: Structural change towards a renewable energy system is needed for our security and will save us money. Staying on the path we are currently on, will lead to catastrophic consequences. The temperature of the planet can only be stabilized if we stop burning oil, gas, and coal.
McKibben, meanwhile, argued that the findings should persuade major companies to embrace climate action for self-interested reasons. He noted that most corporate emissions come from how company money is invested by banks, particularly in the continued exploitation of fossil fuel resources.
"If Amazon and Apple and Microsoft wanted to avoid a world where, by century's end, people had 60% less money to spend on buying whatever phones and software and weird junk (doubtless weirder by then) they plan on selling, then they should be putting pressure on their banks to stop making the problem worse. They should also be unleashing their lobbying teams to demand climate action from Congress," McKibben wrote.
"These people are supposed to care about money, and for once it would help us if they actually did," he continued. "Stop putting out ads about how green your products are—start making this system you dominate actually work."
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The Congressional Progressive Caucus says its legislative blueprint for 2025 and beyond aims to "deliver equality, justice, and economic security for working people."
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The Congressional Progressive Caucus on Thursday published a "comprehensive domestic policy legislative agenda" for U.S. President Joe Biden's possible second White House term that seeks to "deliver equality, justice, and economic security for working people."
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"Progressives are proud to have been part of the most significant Democratic legislative accomplishments of this century. We have made real progress for everyday Americans—but there's much more work to be done," Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) said in a statement.
"That's why the Progressive Caucus has identified these popular, populist, and possible solutions," she added. "Democrats in Congress can meet the urgent needs people are facing; rewrite the rules to ensure majorities of this country are no longer barred from the American promise of equality, justice, and economic opportunity; and motivate people with a vision of progressive governance under Democratic majorities in the House and Senate and a Democratic White House."
Progressive lawmakers have already introduced bills for many items on the agenda, including a Green New Deal for Public Schools, expanding the Supreme Court, comprehensive voting rights protection, and legalizing marijuana.
Critics noted the conspicuous absence of Medicare for All—once a top progressive agenda item—and foreign policy issues including ending Israel's genocide, apartheid, occupation, settler colonization, and ethnic cleansing in Palestine.
Jayapal toldNBC News that the CPC is focusing its blueprint exclusively on domestic goals—especially ones it feels can be achieved.
"The way we came to this agenda is to say that we were going to put into this agenda things that were populist and possible... and affected a huge number of people," she said. "We haven't taken a position on particularly Israel and Gaza in the progressive caucus, and so that's not on here."
The CPC agenda is backed by a wide range of labor, climate, environmental, civil rights, consumer, faith-based, and other organizations.
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"SEIU is proud to partner with the CPC to move these priorities forward and build a more equitable economy in which corporations are held accountable for their actions," she added.
Mary Small, chief strategy officer at Indivisible, said: "House progressives were the engine at the heart of our legislative accomplishments in 2021 and 2022. They've continued that momentum to be true governing partners to the Biden administration as those laws and programs are implemented."
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