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Wall Street nervous as progressive Democrats take over the House finance committee

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Wall Street is bunkering down for a wave of intense scrutiny as a group of progressive Democrats, including social media star Alexandria Ocasio-Cortez, have joined a powerful House of Representatives committee overseeing banking activities.

“It’s a huge victory,” said Ocasio-Cortez, at 29 the youngest member of Congress and a self-described socialist — a word that shocks conservatives, who brandish it as a dire threat.

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“I cannot stress how important this moment is. Dems are putting members who rejected corporate campaign money on a committee overseeing Wall St.,” she tweeted.

Ocasio-Cortez, often referred to by her initials AOC, will bring public attention to the ordinarily drab committee via her strong social media presence that includes 2.5 million followers on Twitter.

Wall Street is trying to figure out the goals of the Democrats, now in charge of the House of Representatives after eight years of control by President Donald Trump’s Republicans.

While the Senate remains in Republican hands and ready to block dramatic changes, Democratic control of the House promises at least to make life difficult for bankers, with tighter industry oversight and lengthy public hearings.

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The symbolism is already striking.

The panel is headed by Maxine Waters, 80, a regular target of Trump’s barbs who is the first woman and the first African American to head the committee.

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Waters has warned the financial sector that the days of banking deregulation and lax oversight are over.

– ‘Wall Street running amok’ –

In her first speech as committee chairwoman on January 16 she said the 2008 financial crisis “was a result of Wall Street running amok, with abusive institutions peddling toxic products… with no agency responsible for prioritizing consumer protection.

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“Ultimately, the economy was sent tumbling into the abyss,” she said.

“Our fear,” a banking source told AFP, “is that she (Waters) will reinforce oversight of big banks.”

The source expects to see “more CEO hearings in Congress” with the Democrats in charge.

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Half of the new committee members belong to the Progressive Caucus, the left wing of the Democratic party.

Several made a splash when they ran for office in the November 2018 election.

They include Ayanna Pressley, the first African American congresswoman from Massachusetts, and Rashida Tlaib, the first Palestinian American and one of the two first female Muslim lawmakers in Washington.

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– Tighter banking oversight –

The newcomers favor tighter banking oversight, but also promise to fight for easier access to credit, more industry diversity, and against housing discrimination.

“I’m looking forward to digging into the student loan crisis, examining for-profit prisons/ICE detention, and exploring the development of public & postal banking. To start,” Ocasio-Cortez tweeted.

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“Public banking” are two words that send shivers down the spine of Wall Street.

Nevertheless, “Cortez won’t set the agenda of the committee, Chairwoman Walters will,” a second banking source said.

“We have a lot of differences with her (Waters) but she’s been in that committee for 30 years. We know her, she knows us,” the source said. “There are bipartisan issues we can work on.”

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The alliance of progressive Democrats extends into the Senate, where they can count on support from Elizabeth Warren, who has announced her interest in running for president in 2020.

Even though she is confined to the opposition, the 69 year-old senator can make bankers and government officials squirm with tough questions from her perch on the Senate finance committee.

“With Republicans in control of the Senate, Waters’ best hope for the next two years is to keep financial issues in the limelight in the hope they influence the election next year,” wrote FTN analyst Chris Low.

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Having Ocasio-Cortez on the committee “will bolster that goal,” he said.

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Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



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Why was Jeffrey Epstein buying size 5 women’s panties — while in jail?

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The Miami Herald has another bombshell report on Jeffrey Epstein, who died in a Manhattan jail while waiting to stand trial on federal sex crimes charges.

"A decade ago, during a brief stint in Palm Beach County Jail, convicted sex offender Jeffrey Epstein made an odd purchase at the facility’s store: two pairs of small women’s panties, size 5," the Herald reported Saturday night.

The newspaper noted, "the panties raise questions about why a childless male inmate, accused of sexually abusing girls as young as 14, would be allowed to buy female undergarments so small that they wouldn’t fit an average-sized adult woman."

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White nationalist Republican ridiculed after only 2 people show up for his town hall meeting

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Embattled Rep. Steve King (R-IA) suffered further humiliation on Saturday when only two people showed up for his town hall meeting with Iowa constituents.

King, who was stripped of all committee assignments for his white nationalism, was been an embarrassment for Republicans with his constant racism and misogyny.

A photo of the town hall meeting was posted on Twitter by Reuters photo editor Corinne Perkins.

https://twitter.com/corinne_perkins/status/1162806565109473280

Rep. King was quickly mocked in the comments.

Here's some of what people were saying:

https://twitter.com/sedespres/status/1162811223186006018

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2020 Election

Democrats could flip the Texas state house in 2020 — and reshape the national map

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Blue Texas? Democrats have long dreamt of winning Texas’s 38 electoral votes in the presidential election. That may still be a long shot, but a recent “Texodus” from Congress has given new talk to a political transformation across the Lone Star State that could have massive ramifications down the ballot and for decades to come.

This article was originally posted at Salon.

Four of the state’s GOP members of Congress have announced their retirements in recent weeks, an unusual torrent of departures signaling that a storm is coming. And evidence shows that it’s not just hitting Texas’s federal delegation. It’s coming to Austin, too.

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