Ryan's Budget Rolls Back Wall Street Reform

Yes, the Paul Ryan budget repeals the president’s Wall Street Reform law (aka. Dodd-Frank) which would subsequently resurrect too-big-to-fail.

On financial regulation, Paul Ryan’s 2013 budget basically cuts-and-pastes its recommendations from last year: it wants to repeal parts of Dodd-Frank that give new power to federal regulators to break up big banks, arguing that the regulations actually make bailouts more likely, not less so. Ryan isn’t proposing an alternative, however, so his plan to repeal the government’s new “resolution authority” would bring us back to the pre-Dodd Frank era — which was also, of course, the era in which bank bailouts proved necessary.

Under Wall Street reform, financial institutions that are deemed “systemically significant” are subject to a host of new regulations, including a new rule that requires them to submit “living wills” that explain what would happen if the firm went belly up. They’re required to submit such plans to the Federal Deposit Insurance Corporation, which has new authority to help liquidate troubled firms so as to avoid systemic catastrophe and prompt taxpayer bailouts.

So under Paul Ryan’s plan, there will likely be more bailouts of crooked Wall Street corporations and financial institutions. Good job, Republicans.

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  • agrazingmoose

    Send it to the Senate. I want to see how Scott Brown votes.

  • Ned F

    Robert Greenstein, president of the CBPP, said this: In essence, this budget is Robin Hood in reverse — on steroids. It would likely produce the largest redistribution of income from the bottom to the top in modern U.S. history and likely increase poverty and inequality more than any other budget in recent times (and possibly in the nation’s history).

    But Paul Ryan is a very serious fiscal hawk, uh huh.

  • trgahan

    Face it average American…Ryan and his friends just don’t really care about you. As long as they can just yelling “Abortion” or “Gays” or “Minorities” and corner 40% of the national vote, this stuff will continue.

  • agrazingmoose

    Ryan says that he doesn’t expect the plan to pass. I would imagine not. It has absolutely no details at all.

    But, he says that he wants it to show the distinction between the President and the Republican candidates which he assures us are all on board with this.

    In what world would you want to show this “distinction” before an election. It is a publicity stunt with no good ending for the Republicans.

    It’s like taking a 30′ swan dive into a pool of hardened cement.