# Republicans To Immediately Deregulate Banks **URL:** \ **Category:** Great Debates\ **Created:** [December 19, 2016, 9:06am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121 "2016-12-19T09:06:32Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Budget\_Player\_Cadet](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/budget_player_cadet/32/205_2.png) [@Budget\_Player\_Cadet](https://boards.straightdope.com/u/Budget_Player_Cadet)\ **Post date:** [December 19, 2016, 9:06am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/1 "2016-12-19T09:06:32Z")
So the House Freedom Caucus released a list of regulations it plans to roll back. > **[House conservatives' sweeping plan for Trump's first 100 days, explained](https://www.vox.com/policy-and-politics/2016/12/16/13967888/freedom-caucus-regulations)** > > The Freedom Caucus has a plan. There’s a lot in there which is bizarre, disturbing, or nonsensical (wait, we _really_ want to make life easier for for-profit colleges?!), but this in particular stood out to me: > [@](#): > > While many on the left criticized the Obama administration for not taking big swings to break up America’s largest banks and prosecute their executives, his administration did promulgate a wide array of rules aimed at making the financial sector less risky, less profitable, and less likely to find itself in need of a taxpayer-financed bailout in the future. > > The Freedom Caucus wants to basically undo all that. Whether it’s a Treasury Department rule trying to assess banks’ liquidity risk, an FDIC rule restricting how much risk banks can take on when doing derivatives trades, or a Federal Reserve ruling making sure the largest and most economically important banks are subject to heightened regulatory scrutiny, the caucus wants to unleash the power of the financial industry to do what it wants with less supervision. Meanwhile it also wants to repeal a couple of rules aimed at ensuring that the government will be compensated for the cost of any possible future bailouts. > > Last but by no means least, without calling for the Consumer Financial Protection Bureau to be formally eliminated, the Freedom Caucus calls for a law “to require that no deference be given to the interpretation of consumer financial law by the Bureau” — which would make it essentially impossible for the CFPB to do anything. Does anyone want this? Does anyone actually think this is a good idea? I was under the impression Trump got a whole lot of mileage out of pointing out how attached Clinton was to the banks. I don’t think there’s anyone on the planet who doesn’t work at one of those wall street banks who thinks allowing for a repeat of 2008 is a good idea. So what’s going on here? Won’t going against the will of the people so clearly and obviously come back to bite them? ---
**Author:** ![Bryan\_Ekers](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bryan_ekers/32/183_2.png) [@Bryan\_Ekers](https://boards.straightdope.com/u/Bryan_Ekers)\ **Post date:** [December 19, 2016, 10:13am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/2 "2016-12-19T10:13:35Z")
America must like recessions; they keep inviting them over. ---
**Author:** ![Hung\_Mung](https://avatars.discourse-cdn.com/v4/letter/h/a88e4f/32.png) [@Hung\_Mung](https://boards.straightdope.com/u/Hung_Mung)\ **Post date:** [December 19, 2016, 11:10am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/3 "2016-12-19T11:10:48Z")
> [@Bryan\_Ekers](#): > > America must like recessions; they keep inviting them over. Hey bby, u wan decreased wage compensation n chill? ---
**Author:** ![BobLibDem](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/boblibdem/32/3149_2.png) [@BobLibDem](https://boards.straightdope.com/u/BobLibDem)\ **Post date:** [December 19, 2016, 12:24pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/4 "2016-12-19T12:24:35Z")
The cycle continues. Elect Republicans, start a war, cut taxes, let banks crash. Elect Democrats, fix the messes. Rinse and Repeat. The House Republicans certainly put the “dumb” in “Freedom” Caucus. Whatever makes more profits for their donors, damn the consequences for the nation. ---
**Author:** ![Budget\_Player\_Cadet](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/budget_player_cadet/32/205_2.png) [@Budget\_Player\_Cadet](https://boards.straightdope.com/u/Budget_Player_Cadet)\ **Post date:** [December 19, 2016, 12:26pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/5 "2016-12-19T12:26:28Z")
> [@BobLibDem](#): > > The cycle continues. Elect Republicans, start a war, cut taxes, let banks crash. Elect Democrats, fix the messes. Rinse and Repeat. > > The House Republicans certainly put the “dumb” in “Freedom” Caucus. Whatever makes more profits for their donors, damn the consequences for the nation. By house republicans do you mean “republicans who live in houses”? Because I feel like this reflects poorly on the voters as well. ---
**Author:** ![BobLibDem](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/boblibdem/32/3149_2.png) [@BobLibDem](https://boards.straightdope.com/u/BobLibDem)\ **Post date:** [December 19, 2016, 12:36pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/6 "2016-12-19T12:36:07Z")
> [@Budget\_Player\_Cadet](#): > > By house republicans do you mean “republicans who live in houses”? Because I feel like this reflects poorly on the voters as well. It reflects on the voters to a point. I doubt many voters said to themselves “gee I hope they deregulate the banks so we can get another Great Recession”. But they are swayed by bullshit lines like “Let’s get rid of job-killing regulations”, not knowing or not caring what the lunatics would do when they gained control of the asylum. ---
**Author:** ![Budget\_Player\_Cadet](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/budget_player_cadet/32/205_2.png) [@Budget\_Player\_Cadet](https://boards.straightdope.com/u/Budget_Player_Cadet)\ **Post date:** [December 19, 2016, 12:43pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/7 "2016-12-19T12:43:38Z")
> [@BobLibDem](#): > > It reflects on the voters to a point. I doubt many voters said to themselves “gee I hope they deregulate the banks so we can get another Great Recession”. But they are swayed by bullshit lines like “Let’s get rid of job-killing regulations”, not knowing or not caring what the lunatics would do when they gained control of the asylum. As the article so helpfully points out: To get a flavor for what’s in store, there is one line in the extensive document really worth reading. The Freedom Caucus places each of 228 regulations slated for elimination into a grid, one of whose columns is cost — \*\*and in most cases they do, indeed, provide an estimated cost of compliance with the regulation divorced from any discussion of the benefits. \*\ ***When it comes to Rule 211, network neutrality, however, they simply state: “All regulations carry costs, which are inevitably passed on to consumers in one form or another.”** It’s not clear exactly where the Freedom Caucus got this idea or why they think it’s true, but as a broad philosophical statement it’s admirably clear and concise. The network neutrality rule’s proponents say that given the lack of competition in wireless broadband markets, requiring infrastructure owners to treat all internet traffic the same is useful in promoting competition among online services and minimizing infrastructure monopolists’ ability to extract monopoly profits. One might or might not agree with that analysis, but from a normal person’s point of view it would at least be a question worth asking. The Freedom Caucus view, by contrast, is that all you really need to know about Network Neutrality regulations — or any other kind of regulation — is that it is a regulation and all regulations, by definition, are costly. **It’s simply not possible to imagine a rule that corrects for negative externalities, asymmetrical information, imperfect competition, myopia, or any other problem in a socially beneficial way**. Emphasis mine. This is why you don’t elect dogmatic simpletons to public office: life is not that simple. “Regulation is necessarily an evil” is a stupid, dogmatic opinion that simply doesn’t apply half the time. And the damage done can be very hard to reverse. ---
**Author:** ![Bryan\_Ekers](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bryan_ekers/32/183_2.png) [@Bryan\_Ekers](https://boards.straightdope.com/u/Bryan_Ekers)\ **Post date:** [December 19, 2016, 1:19pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/8 "2016-12-19T13:19:56Z")
> [@Budget\_Player\_Cadet](#): > > Emphasis mine. This is why you don’t elect dogmatic simpletons to public office: life is not that simple. “Regulation is necessarily an evil” is a stupid, dogmatic opinion that simply doesn’t apply half the time. And the damage done can be very hard to reverse. If you meet such a person, try observing “You’ve never worked in engineering, have you?” Then chuckle knowingly no matter the reply and walk away. ---
**Author:** ![SuperAbe](https://avatars.discourse-cdn.com/v4/letter/s/f17d59/32.png) [@SuperAbe](https://boards.straightdope.com/u/SuperAbe)\ **Post date:** [December 19, 2016, 1:35pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/9 "2016-12-19T13:35:47Z")
It’s probably bad that my pre-coffee brain read this as “Republicans is a necessarily evil” that that the next thoughts were: 1. "Ha! He should have used the plural form of “is”! 2. “Wait…maybe he meant to say ‘Republicanism’” 3. “Hang on… a ‘necessary’ evil? Do we need Evil to talk about bank deregulation?” 4. "Perhaps I should re-read the sentence… " … … … I think I’ll call in Dumb to work today…“Sorry - can’t come in - too Dumb” ---
**Author:** ![WillFarnaby](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/willfarnaby/32/514_2.png) [@WillFarnaby](https://boards.straightdope.com/u/WillFarnaby)\ **Post date:** [December 19, 2016, 3:06pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/10 "2016-12-19T15:06:27Z")
No matter what happens, the next recession will be blamed on deregulation. The 2008 crisis happened after years of increased regulation and growing SEC budgets, yet “everybody” knows it was caused by deregulation. Just general “deregulation”, no specifics needed. Some blame the crisis on tax cuts. No causal mechanisms outlined, just “tax cuts”. Actual deregulation? Yes, please. Will Trump hurt the economy, yes, but this isn’t how it will happen. You’ll know it is happening when consumer prices start rising quickly. ---
**Author:** ![WillFarnaby](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/willfarnaby/32/514_2.png) [@WillFarnaby](https://boards.straightdope.com/u/WillFarnaby)\ **Post date:** [December 19, 2016, 3:13pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/11 "2016-12-19T15:13:44Z")
> [@Bryan\_Ekers](#): > > If you meet such a person, try observing “You’ve never worked in engineering, have you?” Then chuckle knowingly no matter the reply and walk away. Yes observing second and third order consequences of an action is a foreign concept to engineers. ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [December 19, 2016, 3:16pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/12 "2016-12-19T15:16:55Z")
Just to be clear The House Freedom Caucus consists of 35 Republicans. It’s a bit premature to claim that “Republicans to Immediately Deregulate Banks”, since there are more than 200 other House Republicans who have to be convinced to go along with their agenda. Not to mention the Senate. We’ll see how this plays out in determining Ryan’s agenda for The House. Some of this is certainly disturbing, but it’s also the first round in a negotiation\* in which that particular Caucus doesn’t have a whole lot of leverage, considering their numbers and the hurdle of getting anything they want to do past the Senate. \*You always ask for a lot more than you’re willing to settle for in the first round ---
**Author:** ![watchwolf49](https://avatars.discourse-cdn.com/v4/letter/w/e9c0ed/32.png) [@watchwolf49](https://boards.straightdope.com/u/watchwolf49)\ **Post date:** [December 19, 2016, 3:24pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/13 "2016-12-19T15:24:41Z")
> [@John\_Mace](#): > > Just to be clear The House Freedom Caucus consists of 35 Republicans. It’s a bit premature to claim that “Republicans to Immediately Deregulate Banks”, since there are more than 200 other House Republicans who have to be convinced to go along with their agenda. Not to mention the Senate … [snip] By my count, it takes 8 Democrat Senators defecting to end the filibuster there … otherwise nothing will get to The Donald’s desk … just saying … ---
**Author:** ![Wesley\_Clark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wesley_clark/32/20581_2.png) [@Wesley\_Clark](https://boards.straightdope.com/u/Wesley_Clark)\ **Post date:** [December 19, 2016, 10:46pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/14 "2016-12-19T22:46:22Z")
> [@BobLibDem](#): > > It reflects on the voters to a point. I doubt many voters said to themselves “gee I hope they deregulate the banks so we can get another Great Recession”. But they are swayed by bullshit lines like “Let’s get rid of job-killing regulations”, not knowing or not caring what the lunatics would do when they gained control of the asylum. True. I don’t think the average voter really understands or cares about the nuances of policy. They vote based on moral heuristics, which the democrats kind of suck at. The republicans have a strong and appealing moral narrative, the democrats do not (well they do, but they do not use it). ---
**Author:** ![jasg](https://avatars.discourse-cdn.com/v4/letter/j/f0a364/32.png) [@jasg](https://boards.straightdope.com/u/jasg)\ **Post date:** [December 19, 2016, 10:57pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/15 "2016-12-19T22:57:26Z")
> [@watchwolf49](#): > > By my count, it takes 8 Democrat Senators defecting to end the filibuster there … otherwise nothing will get to The Donald’s desk … just saying … or they wait until 2018… ---
**Author:** ![Doubticus](https://avatars.discourse-cdn.com/v4/letter/d/e56c9b/32.png) [@Doubticus](https://boards.straightdope.com/u/Doubticus)\ **Post date:** [December 19, 2016, 11:12pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/16 "2016-12-19T23:12:53Z")
> [@WillFarnaby](#): > > The 2008 crisis happened after years of increased regulation and growing SEC budgets, yet “everybody” knows it was caused by deregulation. It’s not a radical notion. [http://content.time.com/time/specials/packages/article/0,28804,1877351\_1877350\_1877320,00.html](http://content.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877320,00.html) ---
**Author:** ![Bryan\_Ekers](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bryan_ekers/32/183_2.png) [@Bryan\_Ekers](https://boards.straightdope.com/u/Bryan_Ekers)\ **Post date:** [December 19, 2016, 11:17pm UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/17 "2016-12-19T23:17:21Z")
> [@WillFarnaby](#): > > Yes observing second and third order consequences of an action is a foreign concept to engineers. I’m not sure if you missed my point or if I’m missing yours. ---
**Author:** ![Trinopus](https://avatars.discourse-cdn.com/v4/letter/t/2bfe46/32.png) [@Trinopus](https://boards.straightdope.com/u/Trinopus)\ **Post date:** [December 20, 2016, 12:12am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/18 "2016-12-20T00:12:56Z")
> [@watchwolf49](#): > > By my count, it takes 8 Democrat Senators defecting to end the filibuster there … otherwise nothing will get to The Donald’s desk … just saying … And the Republican majority will just move everything to “reconciliation” conferences, bypassing the filibuster. Be prepared to see a lot of irrelevant amendments pop up in these committees. (To be fair, the Democrats did it too…but not often. The Republicans will make it a staple of their legislative practice.) ---
**Author:** ![HurricaneDitka](https://avatars.discourse-cdn.com/v4/letter/h/96bed5/32.png) [@HurricaneDitka](https://boards.straightdope.com/u/HurricaneDitka)\ **Post date:** [December 20, 2016, 12:49am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/19 "2016-12-20T00:49:17Z")
> [@watchwolf49](#): > > By my count, it takes 8 Democrat Senators defecting to end the filibuster there … otherwise nothing will get to The Donald’s desk … just saying … Two points: 1. There are 10 Democratic Senators up for re-election in 2018 in Trump states. How keen do you think they are on filibustering Trump’s agenda, just endorsed by the voters in their states? It’s not at all certain that Schumer will be able to maintain a filibuster even if he wants to. 2. Even if Schumer can, “filibuster all the things” probably isn’t a winning strategy in the Reid-initiated era of just eliminating the filibuster when it’s inconvenient. ---
**Author:** ![ataraxy22](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ataraxy22/32/307_2.png) [@ataraxy22](https://boards.straightdope.com/u/ataraxy22)\ **Post date:** [December 20, 2016, 12:51am UTC](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121/20 "2016-12-20T00:51:48Z")
So given the inevitable Great Depression 2.0 coming down the pike, what should I do to Trump-proof my retirement savings? Sent from my SM-G930V using Tapatalk [Next page](https://boards.straightdope.com/t/republicans-to-immediately-deregulate-banks/775121.md?page=2)