March, 06 2018, 11:15am EDT
CBO: Bank Deregulation Bill Would Lead to More Bailouts
The Congressional Budget Office estimated Monday that the Economic Growth, Regulatory Relief, and Consumer Protection Act - expected to be voted on by the Senate this week - would "increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail."
WASHINGTON
The Congressional Budget Office estimated Monday that the Economic Growth, Regulatory Relief, and Consumer Protection Act - expected to be voted on by the Senate this week - would "increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail."
The increased likelihood of large financial institutions requiring taxpayer bailouts is a result of changes to how these banks are designated, which "would result in fewer assets being subject to enhanced prudential regulation," according to CBO.
"This banking bill is a disaster. The Wall Street crash of 2008 showed the American people how fraudulent many of these large banks are. The last thing we should be doing is deregulating them. As the Congressional Budget Office reported today, the bill that the Senate will be considering this week will 'increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.' Why would any member of Congress vote to move us closer to another taxpayer bailout of large financial institutions? This bill must be defeated," said Sanders, the ranking member of the Budget Committee.
A 1 percent decrease in the capital-to-assets ratio for a bank can increase the probability of failure by up to 60 percent, according to research CBO relied on when producing their cost estimate.
If financial institutions failed at a higher rate than estimated, CBO predicted "the costs to the Deposit Insurance Fund (DIF) or the Orderly Liquidation Fund (OLF) would be very large."
To read CBO's score of the bill, click here.
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'Flawed and Dangerous': US Appeals Panel Upholds Potential TikTok Ban
"This is a deeply misguided ruling that reads important First Amendment precedents too narrowly and gives the government sweeping power to restrict Americans' access to information, ideas, and media from abroad."
Dec 06, 2024
First Amendment advocates on Friday criticized a U.S. appellate court for upholding a law that would ban TikTok in the United States if its Chinese parent company does not swiftly sell the social media platform used by an estimated 170 million Americans.
Signed by President Joe Biden in April, the law gives ByteDance until January 19 to divest from TikTok. Three judges from the U.S. Court of Appeals for the District of Columbia Circuit found that the parts of the law considered by the panel "do not contravene the First Amendment" nor other parts of the Constitution of the United States.
"The First Amendment exists to protect free speech in the United States. Here the government acted solely to protect that freedom from a foreign adversary nation and to limit that adversary's ability to gather data on people in the United States," Judge Douglas Ginsburg wrote in an opinion the company is expected to appeal to the U.S. Supreme Court.
Responding to the decision on social media Friday, Ashley Gorski, senior staff attorney with the ACLU's National Security Project, said that "the D.C. Circuit's decision today to uphold the TikTok ban is enormously disappointing. If allowed to stand, it would give the government far too much power to restrict Americans' speech online."
Jameel Jaffer, who was on a friend-of-the-court brief as director of the Knight First Amendment Institute at Columbia University, issued a similar warning after the ruling was released.
"This is a deeply misguided ruling that reads important First Amendment precedents too narrowly and gives the government sweeping power to restrict Americans' access to information, ideas, and media from abroad," he said. "I hope the D.C. Circuit's ruling won't be the last word—and I doubt it will be."
Kate Ruane, director of the Center for Democracy & Technology's Free Expression Project, also looked ahead to the next court fight.
"The D.C. Circuit decision upholding the TikTok ban will immeasurably harm the free expression of hundreds of millions of TikTok users in the U.S. and globally who use the app to create, to share information, to get their news, and promote their businesses," she said in a statement. "We hope the next phase of review of this misguided and overbroad law will be a chance to right this wrong and prevent it from going into effect."
In addition to arguing the law is unconstitutional, attorneys for TikTok and ByteDance "have claimed it's impossible to divest the platform commercially and technologically,"
The Associated Pressreported. "They also say any sale of TikTok without the coveted algorithm—the platform's secret sauce that Chinese authorities would likely block under any divesture plan—would turn the U.S. version of TikTok into an island disconnected from other global content."
U.S. President-elect Donald Trump, who is set to take office one day after the law's divestment deadline, previously supported banning the platform, but during the latest campaign, he pledged to try to "save TikTok." According toThe Washington Post:
Trump is expected to try to halt the TikTok ban, people familiar with his views on the matter told The Washington Post in early November, speaking on the condition of anonymity to discuss private conversations.
Alan Rozenshtein, a former national security adviser to the Justice Department, said Trump could take any of three actions to help TikTok fend off the ban: persuading Congress to repeal the law, directing his new attorney general not to enforce it, and declaring that ByteDance has satisfied the statute by performing a "qualified divestiture" of TikTok.
Although the president-elect hasn't yet weighed in on the new court decision, on Thursday he shared on his Truth Social platform a post-election overview of how his campaign performed on TikTok.
While Trump may move to preserve TikTok in the United States, civil rights attorney and Harvard Law School Cyberlaw Clinic instructor Alejandra Caraballo noted that the court decision's "terrible precedent" is also a concern as he returns to office.
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The killing of UnitedHealthcare CEO Brian Thompson outside of a Manhattan hotel Wednesday has sparked a wave of dark humor and fresh fury at the for-profit U.S. healthcare system.
The barbs at UnitedHealthcare—the country's largest private insurer—included a mock denial of coverage letter posted to the subreddit r/nursing in a thread on Thompson’s murder.
"We regret to inform you that your request for coverage has been denied," the letter reads. "Our records indicate that you failed to obtain prior authorization before seeking care for the gunshot wound to your chest." The Daily Beastreported a spoof rejection letter was also posted to a since closed thread on r/medicine.
Police are in their third day searching for Thompson's killer, who shot the healthcare executive multiple times in front of a Hilton hotel in Midtown before fleeing the scene. The New York Police Department has released an image that shows a man authorities deem "a person of interest wanted for questioning" in connection to the Wednesday killing, perCNN. The image was captured at a hostel in Manhattan, according to CNN, citing law enforcement.
The words "deny," "defend," and "depose" were found written on the ammunition used by the gunman, three words that partially echo the title of the book "Delay, Deny, Defend," which details how the insurance industry avoids paying claims.
In addition to dark humor, reactions to Thompson's assassination have brought to the fore the public's downright rage at the health insurance industry.
In the comment section of Common Dreams' coverage of the murder, one commenter wrote: "I guess if you steal people's labor and deny them healthcare in order to line your own pockets, you might occasionally expect retaliation." Another wrote: "For profit health care is unethical and immoral."
"Thoughts and deductibles to the family," read one comment below a video of the shooting posted by CNN, according to The New York Times. "Unfortunately my condolences are out-of-network."
One woman whose mother with stage four breast cancer was forced to battle insurance to get new treatments approved toldNew York magazine that she experienced "a little surge of Schadenfreude," when she heard of Thompson's death.
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"When the Consumer Financial Protection Bureau is allowed to fully do its job, Americans only stand to benefit."
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In the coming weeks, as President-elect Donald Trump's second term approaches and his pledge to dismantle key agencies potentially comes closer to fruition, 4.3 million consumers are set to receive checks from one of the agencies the incoming administration wants to "delete."
The Consumer Financial Protection Bureau (CFPB) announced Thursday that it will soon begin distributing a historic $1.8 billion to millions of people who were charged illegal junk fees or defrauded by credit repair companies including Lexington Law and CreditRepair.com.
The money will be distributed from the CFPB's victim relief fund, which was created by Congress and is financed entirely by civil penalties paid by companies and individuals who violate consumer financial protection laws.
The fund has distributed $3.3 billion to consumers since its inception, and the CFPB said the forthcoming payment will be its largest ever.
"Lexington Law and CreditRepair.com exploited vulnerable consumers who were trying to rebuild their credit, charging them illegal junk fees for results they hadn't delivered," said CFPB Director Rohit Chopra. "This historic distribution of $1.8 billion demonstrates the CFPB's commitment to making consumers whole."
A district court ruled in August 2023 that the two companies had violated the Telemarketing Sales Rule's prohibition on advance fees, which bars credit repair firms from collecting fees from consumers until they prove they have achieved the results they promise to their customers.
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The payments are being sent days after the CFPB proposed a rule aimed at reining in data brokers who sell people's personal information.
As Common Dreamsreported, billionaire entrepreneur Elon Musk has expressed concern about the practices of data brokers—but as Trump's nominee to co-lead the Department of Government Efficiency (DOGE), a yet-to-be-created commission that would cut regulations and government spending, Musk has pledged to "delete" the CFPB.
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