While Democrats have worked tirelessly to restore stability to the economy, every candidate on the stage tonight is pushing for a return to the policies that caused the 2007 financial crisis. Instead of advocating for reforms that protect consumers and prevent economic uncertainty such as Dodd-Frank, the Republicans are helping Wall Street win, no matter the risk:
- Marco Rubio’s policies on Puerto Rico are influenced by hedge fund managers that have given to his campaign.
- Ted Cruz’s family finances benefit when Goldman Sachs benefits.
- John Kasich and Jeb Bush both made bank at Lehman Brothers at the same time the economy was starting to collapse.
- Cruz, Rubio, Bush, Trump, Carson, and Kasich have all promised to repeal Dodd-Frank.
The Republicans’ shallow discussion of economic policies at tonight’s debate is an attempt to hide the truth from voters. For every Republican on stage, special interests will always take priority over American consumers.
Background:
REPUBLICAN CANDIDATES WILL ROLL BACK WALL STREET REFORM
Cruz
Called For The Repeal Of Dodd Frank
Cruz Called For The Repeal Of Dodd-Frank, Claiming It Did Nothing To Prevent Bailouts And Created Costly Regulations. According to an Opinion by Sen Ted Cruz in National Journal, “Repeal Dodd-Frank. A law of massive complexity, Dodd-Frank does nothing to prevent future financial bailouts, but instead subjects the financial sector to costly new regulatory burdens — the cost of which invariably will be passed on to consumers. And its impact hits small community banks hardest. Reasonable government regulations are needed to protect the soundness and integrity of the marketplace, but they should not empower bureaucrats to micro-manage private sector institutions to the detriment of consumers.” [National Journal, 9/7/11]
Introduced Legislation Calling For Abolishment Of CFPB
July 2015: Cruz Introduced Legislation That Would Eliminate The CFPB. According to The Hill, “Sen. Ted Cruz (R-Texas) on Tuesday called for abolishing the consumer watchdog agency established by President Obama’s Dodd-Frank Wall Street reform law. Cruz, who is running for president, teamed up with fellow Texas Rep. John Ratcliffe (R) to introduce legislation that would eliminate the Consumer Financial Protection Bureau (CFPB). They said the agency is an example of Washington cronyism that ‘invites regulatory excess and abuse.’” [The Hill, 7/21/15]
Rubio
Rubio: ‘We Need To Repeal Dodd-Frank.”
Rubio: ‘We Need To Repeal Dodd-Frank.” According to PolitiFact, “During the first Republican presidential debate, Rubio called for less regulation, lower taxes, and rolling back the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in the wake of the financial crisis in 2010. ‘We need to repeal Dodd-Frank. It is eviscerating small businesses and small banks,’ he said on Aug. 6, 2015, to applause. ‘Over 40 percent of small and mid-size banks that loan money to small businesses have been wiped out since Dodd-Frank has passed.’” [PolitiFact, 8/12/15]
Bush
Previously Worked As A Lehman Banker
Bush Was Appointed To Lehman Brothers’ Private Equity Advisory Board In June 2007.According to the Tampa Bay Times, “In June 2007, the firm hired former Gov. Jeb Bush — five months after he left office and the SBA board of trustees — to serve as a consultant and member of its private equity advisory board, which buys and sells companies worldwide.” [Tampa Bay Times, 9/10/08]
Jeb Bush Made An Average Of $1.3 Million Per Year Over Two Years In Working As A Consultant For Lehman Brothers Before The Firm Went Bankrupt. According to Reuters, “Bush made an average of $1.3 million per year over two years in working as a consultant for Lehman Brothers before the firm went bankrupt during the 2008 financial crisis. His brother was president at the time.” [Reuters, 6/30/15]
Opposed Dodd-Frank Wall Street Reforms
Jeb Bush Said That Dodd-Frank “Needs To Be Replaced.” According to a transcript of Mornings With Maria, “BARTIROMO: Yes. What about the issue around Dodd-Frank and the financial services industry, Governor? I mean, you’re seeing Dodd-Frank dictate balance sheets. Look at a company like General Electric, selling 50 percent of its earnings because they don’t want to be deemed systematically important and have to go along with all of the costs that come with that. What do you want to do to Dodd-Frank? BUSH: Well, I think it needs to be replaced. Maria, you’re hanging out with the big dogs, the big banks and companies like GE. They have huge compliance departments, accounting departments, lobbyists, lawyers. It’s — they’ve actually grown in size, GE doesn’t want to be a financial services business and so they’re making adjustments.” [Transcript – Mornings With Maria, 9/28/15]
Jeb Bush: “[I’d] Repeal Dodd-Frank If I Could….It’s Not The Intention Of Regulation That Matters, It’s Actually The Results. And These Results Have Created Greater Systemic Risk And Are Hurting The Heartland.” According to TheSkimm, “WHERE DO YOU STAND ON THE FOLLOWING… THE ECONOMY. The mission is high-sustained economic growth where people have a chance to earn success. [I’ve] unveiled a pretty provocative tax reform policy, simplifying the code, lowering rates. Regulatory reform is part of that. The stories of investments not made, of jobs not created, of income not earned, is pretty phenomenal in a world where Washington is just on steroids as it relates to the rules they create. [I’d] repeal Dodd-Frank* if I could….It’s not the intention of regulation that matters, it’s actually the results. And these results have created greater systemic risk and are hurting the heartland.” [TheSkimm, 10/7/15]
Opposed CFPB
Jeb Bush: “The Consumer Financial Protection Bureau (CFPB) Has Imposed Particularly Heavy Regulatory Costs On Smaller And Community Banks.” According to Jeb 2016 Campaign, “The Consumer Financial Protection Bureau (CFPB) has imposed particularly heavy regulatory costs on smaller and community banks: 71 percent of small banks says that the CFPB affects their business activities, 64 percent report that Dodd-Frank has caused them to change their mortgage offerings, and 15 percent say that they have responded to Dodd-Frank by either exiting or considering an exit from the residential mortgage markets entirely.” [Jeb 2016 Campaign, 9/22/15]
Trump
Trump Opposed Dodd-Frank And Breaking Up Big Banks
October 2015: Trump Called Dodd-Frank A “Disaster” And Said He Would “Absolutely” Repeal It. According to the Hill, “GOP presidential frontrunner Donald Trump warned The Hill in an exclusive interview of a looming economic recession, arguing that the stock market has already entered into another bubble. He also slammed the 2010 Dodd-Frank Wall Street reform law as a ‘disaster’ that has stifled economic growth. ‘It’s terrible,’ he said in an interview with The Hill, saying that he would ‘absolutely’ repeal it.” [Hill, 10/14/15]
Carson
Opposed Dodd-Frank
Carson Saw Dodd-Frank As One Of President Obama’s “Massive Expansions” Regarding Regulation. According to an opinion to the Washington Times by Ben Carson, Carson said, “One of the latest massive expansions came early in the Obama years when a Democratic Congress passed the Dodd-Frank banking law and gave birth to an entire new agency called the Consumer Financial Protection Bureau.” [Ben Carson, Opinion – Washington Times, 7/28/15]
Sought To Eliminate Consumer Finance Protection Bureau
Carson Said That The CFPB Was Unnecessary Because Of The BBB, FTC, FDIC And Other Existing Regulatory Agencies. According to an opinion to the Washington Times by Ben Carson, Carson said, “Don’t get me wrong. Protecting consumers is important. But that protection begins with consumers exercising their own self-reliance, carefully making good choices and understanding the consequences. And when those consumers run into unscrupulous vendors, there are already plenty of strong remedies available to them from the courts and the Better Business Bureau, to the Federal Trade Commission, the FDIC and numerous state and local consumer protection agencies, including state attorneys general.” [Ben Carson, Opinion – Washington Times, 7/28/15]
Kasich
Kasich Supports Rolling Back Wall Street Reform; Was Formerly A Lehman Banker
Breitbart, 2015: Kasich “Stated He Would Roll Back Or Repeal Dodd-Frank.” According to Breitbart, “Kasich also stated he would roll back or repeal Dodd-Frank and that his energy policy would be ‘all of the above,’ but would be done via market forces.” [Breitbart, 10/17/15]
Kasich Believed Dodd-Frank Wall Street Reform and Consumer Protection Act “Went Overboard.” According to Bloomberg, “Kasich indicated that his agreements with Warren pretty much end there. ‘I don’t think you can fix all this like Elizabeth Warren says, by demonizing the rich or saying we can just impose all these regulations,’ he said, adding that he thought Dodd-Frank Wall Street Reform and Consumer Protection Act, which limited a number of trading activities, ‘went overboard.’” [Bloomberg, 4/24/15]
Kasich, 2015: “We Have So Many Regulations That Are Choking Not Only Big, But Small Businesses.” According to the Columbus Dispatch, “As other Republican presidential candidates bash away at the 2010 health law and immigration, Gov. John Kasich called for a sharp reduction in federal regulations while increasing financial incentives for U.S. companies to spark a more robust economic recovery. Appearing on Fox News Sunday following a brutal week for investors on Wall Street, Kasich complained ‘ we have so many regulations that are choking not only big, but small businesses.’ ‘And I think combined with corporate incentives, balancing (federal) budgets and deregulation, I think the American economy will begin to grow again,’ Kasich said. ‘And growth is the most important element in America.’” [Columbus Dispatch, 8/23/15]
NYT, 2015: Kasich’s Career At Lehman Brothers “Coincided With The Bank’s Messy Collapse In September 2008.” According to the New York Times, “But there is a chapter in Mr. Kasich’s life story that conflicts with this narrative: the nearly eight years he spent as an investment banker with Lehman Brothers, the Wall Street firm. Mr. Kasich’s career at Lehman, neatly tucked between his time as a congressman and his election as governor, coincided with the bank’s messy collapse in September 2008, a downfall that helped throw the American economy into free fall.” [New York Times, 8/25/15]
Published: Nov 10, 2015