Daily Archives: February 15, 2017

Whatever happened to liberal Democrats, anyway? – Chicago Tribune

Posted: February 15, 2017 at 9:42 pm

What happened to liberal Democrats, and their concerns about civil liberties and government surveillance of American citizens?

Liberals once hated the CIA. And they loved the Russians. Yeah, you can look it up.

And their liberal friends in liberal Hollywood made movie after movie about the dangers of The Deep State and its awesome surveillance powers. One of the best was "Three Days of the Condor," with liberal icon Robert Redford fighting the malevolent CIA boss John Houseman, who longed for "the clarity" of world war.

Years later, Edward Snowden became the liberal demigod and Wikileaks was their winged chariot of truth and beauty. Liberals fretted about the powers of the intelligence community being used on private citizens for political reasons.

So what happened to them? What happened to the ideals of these liberal Democrats?

Donald Trump was elected president, that's what happened to them.

And now you can clearly see the change in them as Trump's national security adviser, Michael Flynn, has become feast for the crows.

Flynn deserves his punishment. Make no mistake about that. He reportedly lied to Vice President Mike Pence about his phone conversations with a Russian ambassador that included discussion of the Obama administration's sanctions against Russia.

As a former general officer, as a former Defense Intelligence Agency boss, Flynn understands the chain of command. There is no lying to a superior officer, and Pence was his superior. Lying to a superior is grounds for court-martial. Or, at least gives pretext for a quick and brutal departure from the Trump White House, which is what happened.

So Flynn is gone, forced to resign, his head high on a spike upon the Democratic Party ramparts.

Democrats jeer at his head up there. It's as if this episode were street theater in olde England, with Punch and Judy entertaining the small folk. And Flynn's head, up there above them, is pecked endlessly in the sun.

But what victory are they celebrating, exactly? And at what cost to the republic?

What would have been bothersome to liberals of old (the pre-Trump kind) is that Flynn may have been targeted for a takedown by the Deep State intelligence operatives liberals once loathed.

Flynn and Trump warred with the intelligence community during the campaign, and Trump called out the CIA and others on multiple occasions, tweeting at them, provoking them.

Most recently, Trump was furious that his private conversations with the Australian prime minister became public and were used as a club to pound him in the pages of the "Never Trump" Washington Post and other establishment newspapers.

The damning news was that there are reportedly transcripts of Flynn speaking with the Russian ambassador before Trump was inaugurated president.

This indicates that Flynn was most likely the subject of a warrant issued by the secret Foreign Intelligence Surveillance Court. It means his conversations were recorded. The American public should know what this is about. I have a hard time believing Flynn was a traitor. But I don't have a hard time believing that arrogance and foolishness are necessary prerequisites for a hard public fall.

What's astounding about this is that news reports on Flynn's conversations with the Russian ambassador also mentioned something else.

They mentioned the existence of many intelligence community sources, and these many intelligence sources presumably read the transcripts and leaked their contents to reporters.

That's what is amazing. That the intelligence community records the conversations of a private citizen and leaks to damage and weaken a president.

Liberals who once prided themselves on being civil libertarians are overjoyed. They don't question their good fortune. They celebrate.

Now Trump is in open, public war with American intelligence and liberals cheer on the intelligence community leakers.

Trump declared his war with American intelligence on his Twitter account and then did so in person as he stood in the White House at a news conference with Israeli Prime Minister Benjamin Netanyahu.

"I think he's (Flynn) been treated very, very unfairly by the media as I call it, the 'fake media,' in many cases and I think it's really a sad thing that he was treated so badly," Trump said.

"I think in addition to that, from intelligence, papers are being leaked, things are being leaked," said the president, adding that such leaks were a "criminal action, criminal act."

The president's references to Flynn are awkward and politically self-serving.

But the president's reference to the intelligence community in his government is an open declaration of war. And it's dangerous.

Democrats are on the outs, so they love this story about Flynn. It feeds into their belief that Trump is some tool of Russian strongman Vladimir Putin. It's not whether they believe it that matters. What matters is that they see a way to sear this deeply upon the American mind before the 2018 elections.

Democrats will continue to push this theme, even if it means celebrating a possible takedown of administration officials by American intelligence, and the many sources of those reports.

So why aren't liberals more concerned, when once they'd be outraged about authoritarian tactics?

For the same reasons they weren't concerned about presidential overreach when their guy was president, with his imperial pen and his phone.

Because for many Democrats, just like for many Republicans, it's all about power, isn't it? And ideals even those which help keep the republic be damned.

Listen to "The Chicago Way" podcast with John Kass and WGN's Jeff Carlin and guests Sen. Rand Paul and Kristen McQueary at http://www.wgnradio.com/category/wgn-plus/thechicagoway.

jskass@chicagotribune.com

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Whatever happened to liberal Democrats, anyway? - Chicago Tribune

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New Liberal PAC Targets Democrats for Primaries – NBCNews.com

Posted: at 9:42 pm

A new progressive Political Action Committee plans to recruit and fund primary opponents to Democratic members of Congress that it feels are not aggressive enough in fighting President Donald Trump.

WeWillReplaceYou.org was formed by a group of progressive activists with backgrounds in the Bernie Sanders campaign, the environmental movement, the Black Lives Matter movement, and the DREAMer movement of young undocumented immigrants.

It's a project of #AllofUs, a new millennial progressive organization that has protested Democratic members of the Senate, urging them to draw a harder line against Trump's cabinet nominees and policy agenda.

While many liberals, including filmmaker Michael Moore, have issued nominal threats of left-wing challenges to Democratic lawmakers, WeWillReplaceYou.org appears to be the first organized effort to explicitly turn those threats into a reality. That will likely put it on a collision course with Democratic efforts to protect incumbents.

"Other groups are probably expecting to primary Democrats, but we think that it's important to make the threat clear now because so many Democrats are not fighting Trump forcefully enough and we need to communicate that we're serious," Claire Sandberg, a former Sanders staffer and one of the group's founders, told NBC News. "Our message to Democrats is pretty straightforward: Fight Trump or we'll find someone who will."

The objective is not necessarily to replace Democratic incumbents, but to pressure them, Sandberg said, adding that the group is holding off on releasing any targets at the moment.

"We want to leave the door open for Democrats to improve and be stronger in their opposition to Trump," said Sandberg. "We're only a few weeks into the Trump administration. Our goal is not primary every single Democratic member of Congress. It's to push Democrats who are there to do better."

WeWillReplaceYou.org will decide which Democrats to target based on where it can have an impact and through surveys of its members. There may be a handful of "litmus tests," the group suggested, such as voting against Trump's Supreme Court nominee, Neil Gorsuch.

The group welcomes comparisons to the Tea Party, and it's certain to attract familiar criticism from Democratic officials worried that primary challenges will undermine the party's ability to retain seats.

Ten Democratic senators are up for reelection next year in states Trump won. Republicans now hold 52 seats and the Senate, and if they were to pick off 8 of those ten Democrats, the GOP would win a filibuster-proof 60-seat majority -- an outcome many Democrats would view as Armageddon.

Sandberg rejected the criticism that primary challenges to those Democrats would imperil the party's effort to hold those seats. Demoralizing the base with tepid opposition to Trump, Sandberg said, should be Democrats' bigger fear.

"The same base that supports those primary challenges will propel them to victory in general elections," she said.

But in places like West Virginia, where Democratic Sen. Joe Manchin is facing a tough reelection battle, Democrats will almost certainly need more than base voters alone to prevail. Trump won the state by over 40 percentage points.

Either way, primary challenges seem inevitable after an election loss that galvanized the left and nurtured doubts about party leadership.

"The 53 Senators, including Democrat Joe Manchin, who voted to put millions of jobs at risk by putting another Wall Street banker in charge of the Treasury Department shouldn't expect to keep theirs," Charles Chamberlain, the executive director of the liberal group Democracy for America said after Manchin joined Republicans in voting to confirm Treasury Secretary Steve Mnuchin Monday.

WeWillReplaceYou.org plans to raise money and organize volunteer efforts online, so the scale of its operations and the number of races it gets involved in will depend on how much support it receive.

But it hopes to operate on the cheap. The group plans to eschew expensive TV advertising in favor of some digital ads to support its main focus on distributed organizing, which leverages technology to generate phone calls, door knocks, and other volunteer efforts without the overhead of paid staff required by more traditional field programs.

As a hybrid PAC, the group can coordinate directly with campaigns in addition to fund independent expenditures.

In addition to Sandberg, who was the director of digital organizing on Sanders' campaign, advisors to the new group include include Kenneth Pennington, Sanders' former digital director, Rafael Navar, the national political director of the Communications Worker of America, May Boeve, the executive director of the environmental group 350 Action, Taj James, the executive director of Movement Strategy Center, former andra Flores-Quilty, the president of the United States Student Association and Carolina Canizales, a former United We Dream official.

All are working in their personal capacity, not on behalf of their groups.

Another advisor, Jessica Pierce, who once ran the NAACP's field training program, said Democrats' current leadership has taken support from communities of color for granted.

"Even now our elected leaders are still failing us," she said. "As someone who has run national election campaigns in every election cycle since 2006 , but who has also been a part of the momentum of the Movement for Black Lives -- I know that it is going to take all of, working strategically to make the change that people need. We must resist at every level-- from the streets to the Senate."

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New Liberal PAC Targets Democrats for Primaries - NBCNews.com

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NDP asks election watchdogs to probe Liberal donation reports – The Globe and Mail

Posted: at 9:42 pm


Lifesite
NDP asks election watchdogs to probe Liberal donation reports
The Globe and Mail
The Liberal Party say the amounts recorded in their quarterly filings with Elections Canada do not in fact reflect the precise donations being made in each instance. They say the figures include more than just the contribution; they also include money ...
Trudeau revives Liberal gvmt program designed to circumvent Canadian lawsLifesite
Liberals failed to educate voters on electoral reform, says profCBC.ca
Liberal Government Disappoints on Justice for Women, First NationsRaise the Hammer

all 29 news articles »

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NDP asks election watchdogs to probe Liberal donation reports - The Globe and Mail

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What’s a Liberal to Do When His Spouse Is a Trump Zealot? – New York Times

Posted: at 9:42 pm

What's a Liberal to Do When His Spouse Is a Trump Zealot?
New York Times
She now says she hates all liberals, all Democrats and, particularly, Barack Obama. I am weary and frightened of her diatribes and no longer bring up any Trump-related topic. But she frequently does. Is it ethical for me to remain silent when ...

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Liberal Activists Join Forces Against a Common Foe: Trump – New York Times

Posted: at 9:42 pm


New York Times
Liberal Activists Join Forces Against a Common Foe: Trump
New York Times
Within days of the election, Mr. Boyan began volunteering for the Working Families Party, a liberal political organization focused on income inequality, and attended almost weekly protests to voice his dismay. He traveled to the Women's March on ...

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Conservative groups push back against liberal opposition to Neil Gorsuch – Washington Examiner

Posted: at 9:42 pm

Conservative groups involved in a multimillion-dollar effort to ensure that federal appeals court Judge Neil Gorsuch is confirmed to the Supreme Court are pushing back against opposition from a coalition of liberal groups.

After more than 100 liberal groups wrote a letter to leaders of the Senate Judiciary Committee Wednesday, America Rising and the Judicial Crisis Network sought to downplay the criticism.

"It's no surprise that this collection of liberal groups would oppose a mainstream nominee like Judge Gorsuch, who follows the law, adheres to the Constitution, and has been effusively praised by legal experts on both sides of the political spectrum," Jeremy Adler, America Rising Squared spokesman, wrote in an email. "Instead of voicing legitimate concerns, this is just a sad attempt to play politics with a Supreme Court seat and knowingly misrepresent Judge Gorsuch's sterling judicial record."

The Judicial Crisis Network similarly labeled the liberals as "extremists."

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"I am not surprised that a group of results-oriented political activists have attacked Judge Gorsuch because he is a fair and impartial judge, not a results-oriented political hack," said Carrie Severino, Judicial Crisis Network chief counsel. "Like Senator [Chuck] Schumer, they are extremists who will try every trick in the book to stop an exceptionally qualified, widely respected nominee who puts the law and the Constitution ahead of politics."

The back-and-forth between advocacy groups over Gorsuch's nomination comes ahead of the confirmation hearings expected to begin in the Senate next month.

Top Story

Allegations that Flynn was targeted by the U.S. intel community for his hostility to the Iran deal haven't gained much traction among Senate Republicans.

02/15/17 6:36 PM

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The True Origins of the Phrase ‘Bleeding-Heart Liberal’ – Atlas Obscura

Posted: at 9:42 pm

Westbrook Pegler with Eleanor Roosevelt. Franklin D. Roosevelt Library/NARA 195810

Westbrook Pegler was extremely good at calling people names. Particularly politicians. In his syndicated newspaper column, he called Franklin D. Roosevelt Moosejaw and mommas boy. Truman was a thin-lipped hater.

Pegler was a bit of hater himself. He didnt like the labor movement, Communists, fascists, Jews, and perhaps most of all, liberals. In one 1938 column, he coined a term for liberals that would eventually come to define conservative scorn for the left. Pegler was the first writer to refer toliberals as bleeding hearts. The context for this then-novel insult? A bill before Congress thataimed tocurb lynching.

Before the 20th century, the phrase bleeding heart was popular in the religious-tinged oratory of 19th century America. Throughout the 1860s, it comes up often in poetry, essays, and political speeches, as an expression of empathy and emotion. I come to you with a bleeding heart, honest and sincere motives, desiring to give you some plain thoughts, said one politician in an 1862 speech. The phrase comes from the religious image of Christs wounded heart, which symbolizes his compassion and love. It was a common enough phrase that London has a Bleeding Heart Yard (featured prominently in the Dickens novel Little Dorrit) which is named after a long-gone sign, once displayed at a local pub, that showed the Sacred Heart.

By the 1930s, though, the phrase had fallen out of common use and Pegler, who one politician called a soul-sick, mud-wallowing gutter scum columnist, recruited it into a new context, as a political insult. He was a master of this art. As a contemporary of his wrote in an academic article on political name-calling, Pegler has coined, or given prominence to, a fair share of unfair words. (Pegler also called the AFL a swollen national racket, economics a side-show science, and Harold Ickes, who ran the Public Works Administration, Donald Duck.)

Pegler first used bleeding heart in a column castigating liberals in Washington for their focus on a bill to provide penalties for lynchings. Pegler wasnt for lynchings, per se, but he argued that they were no longer a problem the federal government should solve: there had only been eight lynchings in 1937, he wrote, and it is obvious that the evil is being cured by local processes. The bill, he thought, was being used as a political bait in crowded northern Negro centers. And here was his conclusion, emphasis ours:

I question the humanitarianism of any professional or semi-pro bleeding heart who clamors that not a single person must be allowed to hunger but would stall the entire legislative program in a fight to ham through a law intended, at the most optimistic figure, to save fourteen lives a year.

Pegler was apparently pleased enough with this use of bleeding heart that he kept it up. He later wrote of professional bleeding hearts who advocated for collective medicine after a woman couldnt find a doctor to help her through labor, and lobbed the insult of bleeding heart Bourn at a rival, left-leaning columnist. By 1940, he had condensed the phrase down to bleeding-heart humanitarians and bleeding-heart liberals.

Peglers usage did not immediately catch on, though. (Perhaps thats because he went on to become so right-wing that he was asked to leave the John Birch Society.) If the New York Times archives is any indication, through the 40s and 50s, bleeding heart was most often used to refer to the flower Lamprocapnos spectabilis, which grows rows of pretty pink blossoms, and occasionally sports.

Bleeding heart wasrevived in a political context in 1954, by another infamous right-winger, Joe McCarthy, who called Edward R. Murrow one of the extreme Left Wing bleeding-heart elements of television and radio. It wasnt until the 1960s that it really started to come into common use, though. In 1963, the satirical columnist Russell Baker put it on a list of political insults: If one is called a phoney, about the only thing he can do is come back with some epithet like, anti-intellectual or bleeding-heart liberalor you must be one of those peace nuts. By the end of the decade, Ronald Reagan, then newly elected governor of California, had picked it up as a way to describe his political trajectory. I was quite the bleeding-heart liberal once, he told Newsweek. By 1970, he was known as a former bleeding heart Democrat.

After that, the phrase was fully ensconced in political short-hand and quickly claimed by liberals as a positive trait. You are called a bleeding heart liberal because you have a heart for the poor, one told the Times. Count me with the bleeding heart liberals, an NAACP lawyer wrote in a letter to the editor.

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Mason Fiscal gives WVFD go-ahead – Ledger Independent

Posted: at 9:41 pm

Much like their Maysville City counterparts, Mason County Commissioners gave the go-ahead for the Washington Volunteer Fire Department to become independent from the city.

The department currently operates under the MFD.

In doing so, the county agreed to provide support in the form of insurance on vehicles and, eventually, on buildings. That should total about $2,500 after the first three years, officials said.

The process of pulling city fire department support from the WVFD will be a three-year process, Maysville City Manager Matt Wallingford told county commissioners.

As an independent department, the WVFD will be eligible for federal grants and state aid, have control over its own budget and freedom to raise funds, Wallingford said. During the transition, the city will lease the current fire building to the volunteers for $1 annually for three years and pay utilities on the building, also for three years, he said.

Last fall, talks first began with plans to merge the WVFD with another county department. It was later decided the firefighters with WVFD would prefer to go it alone, Wallingford said.

Even though the department is located within the city limits, it is a county fire department, Wallingford said.

WVFD Chief Darrell Kalb said his department covers an area which serves 400-600 households and has mutual aid agreements with neighboring departments to share services and equipment and responds when requested. The department has recently added more firefighters to its roster and has started a junior firefighters program for teens ages 15-18, he said.

City officials are currently working to secure non profit status for the WVFD and acquire a tax ID number for the group. Before any official agreement is brought to a vote, the city needed a "green light" to continue the process and county officials gave the proposal a thumbs up.

Mason County Judge-Executive Joe Pfeffer said the WVFD is just another example of the city and county working together.

Also Tuesday, the county commissioners heard an update from Buffalo Trace Health Department Executive Director Allison Adams on the Community Health Needs Assessment and Health Improvement Plan.

"The staff of the Buffalo Trace District Health Department have a vision for a healthy community for everyone," Adams said in a letter opening a booklet outlining the assessment and community health improvement plan.

Adams said several things stood out in the assessment including smoking, diabetes, immunization, sexually transmitted diseases and teen pregnancy rates. rates. There is also a large incidence of single parent households and grandparents raising grandchildren in the area. Those all contribute to lower life expectancy, she said.

"We want everyone to have the opportunity to be healthy," Adams said.

While the goal is to get the community healthy, that isn't going to happen overnight -- just as becoming less than healthy was a long process so too will changing attitudes and outcomes be a long-term process, she said.

In other business, commissioners:

-- Heard from Barry Fryman with the Kentucky Transportation Cabinet District 9 office who outlined Rural Secondary Fund allotments for the county and recommendations for state road projects including Tuckahoe Road, Helena Road, Ewing Road and Salem Ridge Road.

-- Approved reports from the Road Department, Animal Shelter, Sheriff, Landfill and Recycling Center, Detention Center and Treasurer.

-- Approved the addition of Robert Scott and Larry Rice to the list of approved electrical inspectors.

-- Appointed Andrew Wood to an unexpired term on the Ethics Committee and reappointed John Larry Dodge to the same committee.

-- Learned Pfeffer named Barry Fields to fill the unexpired term of Juston Pate to the Maysville-Mason County Industrial Authority.

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Better Buy: Baidu Inc. vs. Amazon.com Inc. — The Motley Fool – Motley Fool

Posted: at 9:41 pm

Baidu (NASDAQ:BIDU) and Amazon.com (NASDAQ:AMZN) have both been very profitable plays for long-term shareholders. Shares of Baidu have risen 1,480% over the past ten years, while shares of Amazon have surged 2,050%.

Baidu and Amazon probably won't repeat those massive gains over the next decade, but both tech giants remain solid investments -- Baidu is the top search engine in China, and Amazon is the biggest e-commerce site and cloud platform provider in the world. Let's compare both company growth trajectories and valuations to see which is a better buy at current prices.

Image source: Getty Images.

Baidu's revenue grew 35% in fiscal 2015, but it's only expected to rise 6% in fiscal 2016 when it reports its full-year earnings on Feb. 23. That slowdown was mainly caused by a government crackdown on misleading ads (especially for healthcare products) across its sites, a swap of its stake in online travel agencyQunarwith its rival Ctrip, and the overall slowdown of the Chinese economy.

But once those headwinds fade, Baidu's top line is expected togrow 20% in fiscal 2017. That growth will likely be fueled by its investments in new and adjacent markets, like O2O (online-to-offline) services which integrate new services into its core mobile app, driverless vehicles, and artificial intelligence.

Amazon's revenue rose 20% in fiscal 2015, 27% in fiscal 2016, and is expected to rise another 22% this year. That consistent growth can be attributed to the rapid growth of its core marketplace businesses and the growth of AWS (Amazon Web Services), the biggest cloud platform in the world. During fiscal 2016, AWS revenues surged 55% and accounted for 9% of its top line -- compared to 7% in 2015.

Most of Baidu's revenues come from ads, which have much higher margins than Amazon's main marketplace business. However, Baidu's operating margins have gradually declined over the past few years, due to the ramp up in its spending on O2O services and other businesses. Meanwhile, Amazon's operating margins have gradually improved due to the growth of AWS, which has much higher margins than its marketplace business.

Source:YCharts.

Baidu's net income rose 155% in fiscal 2015, but much of that gain came from the aforementioned share swap with Qunar and Ctrip. For fiscal 2016, analysts expect Baidu's net earnings to fall nearly 10% on higher O2O investments in letting users order meals, hail cabs, make payments, and perform other tasks within its core app. Baidu needs these features to widen its moat against Tencent (NASDAQOTH:TCEHY), which squeezes similar features into its monolithic WeChat app. But looking forward, analysts expect Baidu's earnings to rebound 33% in 2018 as those ecosystem investments bear fruit.

Amazon's rising operating margins lifted its net income by 125% in 2015 and 298% in 2016. Analysts expect AWS' top line growth and its steady operating margins to boost its net earnings by 49% this year and 75% in fiscal 2018. That impressive bottom line growth will give Amazon more freedom to use loss leading and low-margin strategies (like additional Prime services, Echo, Fire TV, Dash buttons) to expand its e-commerce ecosystem. However, investors should be aware that an ongoing price battle in the cloud platform market has forced AWS to repeatedly lower its prices -- so the unit's bottom line growth could still hit a few speed bumps in the near future.

Baidu trades at 14 times trailing earnings, which is much lower than the industry average of 50 for internet information providers. But its forward P/E of 32 is higher due to its expected slowdown in earnings growth.

Amazon has a trailing P/E of 192, which initially looks lofty but isn't terribly high relative to its earnings growth in 2016. Its forward P/E of 65 also looks reasonable compared to earnings growth expectations for 2017 and 2018.

With high-growth internet companies like Baidu and Amazon, it's also important to check their enterprise value to free cash flow (EV/FCF) ratios. A lower figure indicates that the company is "cheaper" relative to its free cash flow -- which can be used to further expand their businesses. As seen in the following chart, Amazon looks much cheaper than Baidu by that key metric.

Source:YCharts.

I own shares of both Baidu and Amazon, and I still recommend buying both stocks as long-term tech investments. But if I can only buy one at current prices, I'd buy Amazon because it exhibits steadier top and bottom line growth with reasonable valuations. As for Baidu, investors should see if short-term concerns about its rising expenses punish the stock -- which could reveal better buying opportunities.

Leo Sun owns shares of Amazon, Baidu, and Tencent. The Motley Fool owns shares of and recommends Amazon and Baidu. The Motley Fool recommends Ctrip.com International. The Motley Fool has a disclosure policy.

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Consumers in cross-hairs with Dodd-Frank repeal – mySanAntonio.com

Posted: at 9:41 pm

Catherine Rampell, Washington Post Writers Group

Consumers in cross-hairs with Dodd-Frank repeal

The White House may be in chaos. But at least Congress is addressing the issue Americans care about most: making it easier for the finance industry to rip them off.

Last week, Jeb Hensarling of Texas, chairman of the House Financial Services Committee, circulated an outline of his latest plan to repeal Dodd-Frank. This law, you may recall, was put in place after the financial crisis to reduce our chances of having another one.

The law isnt perfect, but it did have at least one crucial, mostly popular component: It created an agency dedicated solely to helping consumers fight back when financial institutions cheat or mislead them.

This agency is called the Consumer Financial Protection Bureau. It oversees large banks, thrifts and credit unions, along with lots of companies in the nonbank universe, such as mortgage brokers and servicers, payday lenders, debt collectors, private student lenders and credit bureaus.

Remember when Wells Fargo got caught creating millions of fake customer accounts? The bureau helped lead that investigation, which resulted in a $185 million settlement.

The bureau has also, among other things, sued pension-advance companies that fleece veterans, and it ordered the firms that left low-income users of prepaid RushCards unable to access their own money to pay $13 million in restitution and fines.

In its five years of existence, the bureau says, it has recovered $11.7 billion for more than 27 million consumers.

The financial industry, understandably, is not keen on this independent federal agency. And neither is Hensarling, who just coincidentally? has received generous campaign contributions from the finance industry.

Hensarlings leaked memo lays out updates to legislation he introduced last year (which, among other things, required that CFPB employees be paid less than their counterparts at other federal financial regulatory agencies).

Under the Orwellian section heading Empowering Americans to Achieve Financial Independence, the memo explains how Hensarling intends to further disempower this agency and by extension, American consumers.

For instance, the CFPB director would become an at-will political appointee. This means that unlike the officials who run the Federal Reserve, Federal Trade Commission or Securities and Exchange Commission the CFPB director could be fired without cause. The bureau would cease to be an independent agency and could be pressured at any time to drop investigations of, say, friends of the president.

According to the memo, Hensarling also plans to repeal the CFPBs supervisory powers that is, its authority to regularly examine whats going on inside the institutions it regulates to make sure theyre following the law.

And the bureau would no longer be allowed to punish firms that cheat customers.

Yes, no more fines and no more penalties. Its not even clear from Hensarlings memo that the bureau could force firms to return any money theyve already pinched from consumers.

We dont know exactly how the bullet points in this memo will get translated into legislation. But it seems likely that consumer protections would wind up even weaker than they were before the crisis.

Thats because Dodd-Frank took the authority to enforce some consumer protection laws away from other regulators and gave them to the newly formed CFPB. Assuming those authorities arent being redelegated to these other agencies and the memo does not indicate that will happen theyll remain with a bureau thats essentially powerless to enforce them.

Which brings me to the weirdest and least defensible parts of Hensarlings plan: an effort to make consumers dumber.

Hensarlings memo also eliminates the CFPBs research functions, its public database of consumer complaints and even its consumer education functions. Right now, the bureau publishes educational materials on its website and partners with libraries, veterans groups and other community organizations.

Its hard to imagine what legitimate public interest lies in killing efforts to promote financial literacy. But in the con-man economy, maybe public interest is no longer a consideration.

crampell@washpost.com

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