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Regulators exist to ‘serve the banks,’ next House finance chairman declares

By Sahil Kapur
Monday, December 13, 2010 15:25 EDT
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Alabama Republican Spencer Bachus, the incoming chairman of the House banking committee, says the role of Congress and federal regulators is to “serve” financial institutions.

“In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks,” Bachus told The Birmingham News in an interview.

The Republican leadership last week designated Bachus the next chairman of the powerful House Financial Services Committee, which is tasked with overseeing banks, financial markets, housing and consumer credit.

Democrats characterized the remark as a Freudian slip, nicknaming the Alabaman “Big Bank Bachus” and claiming the new Republican-controlled House will put the interests of financial institutions ahead of the American public.

“Congressman Spencer ‘Big Bank’ Bachus has given Americans a startlingly honest answer about the House Republican agenda – do whatever is good for the big banks and Wall Street special interests, rather than what’s good for hardworking Americans,” said Jesse Ferguson, a spokesman for the Democratic Congressional Campaign Committee.

Bachus later told the Birmingham News he merely meant Congress shouldn’t micromanage banks.

The congressman from Alabama’s 6th district has throughout his 18-year House career raised millions from financial interests, including over $1 million from commercial banks alone, according to the Center for Responsive Politics.

He has received over $800,000 from the real estate industry, $700,000 from securities and investment firms, and $415,000 from credit companies — all of which he will have extraordinary influence over as banking committee chair.

Bachus was an important negotiator for the $700 billion Troubled Asset Relief Program (TARP) of 2008 — often derided as the “bank bailout” — which angered the public but also prevented a widespread collapse of the financial system. It passed with wide bipartisan support.

The outgoing chairman, Rep. Barney Frank (D-MA), played an instrumental role in developing sweeping financial regulatory reforms enacted by President Barack Obama in July.

 
 
 
 
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  • http://www.facebook.com/people/Ignas-Bednarczyk/100001526647108 Ignas Bednarczyk

    The interest’s of America’s financial institution’s have alway’s been ahead of those of the American public.What I don’t see is why it need’s to be emphasised.It is wrong.

  • Anonymous

    If it walks like a piggy, talks like a piggy, by golly it’s a PIGGY!

    WHERE IS MY LOAN MODIFICATION BANK OF DESTROYING AMERICA!

    BofA and it’s CEO Brian Moynihan reminds me of that song by John Lennon and George Harrison titled “Piggies” I invite you to listen to this song on youtube and see if it appropriately fits.

    http://www.youtube.com/watch?v=ovD9rTzs2q4&feature=player_embedded

    Have you seen the little piggies
    Crawling in the dirt
    And for all the little piggies
    Life is getting worse
    Always having dirt to play around in.

    Have you seen the bigger piggies
    In their starched white shirts
    You will find the bigger piggies
    Stirring up the dirt
    Always have clean shirts to play around in.

    HAVE HAD ENOUGH AND I AM FIGHTING BACK!

    Divided we might have fell America. UNITED WE MUST STAND!

    I SUPPORT WRIGHT vs. BANK OF AMERICA, AND WE ARE FIGHTING BACK!

    John Wright
    piggybankblog.com

  • Anonymous

    Time has come to stand up against banks’ deception, false representations, fraud. Time has come to recognize millions of homeowners as the victims of the same fraudulent business model!

    “Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws.” – Plato (427-347 B.C.)

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