Trump and Dodd-Frank – What You Don’t Know

In 2009, I began working for several financial sites –  mostly keeping up with their blogs and some white papers. It wasn’t too long before the 2009 CARD Act was signed into law and within a year after that, so was Dodd-Frank Act.  I had to immerse myself in a crash course as to what these laws meant for consumers. Both were straight out of the Obama Administration.

It wouldn’t take long to realize the Consumer Financial Protection Bureau, which was founded under Dodd-Frank, was a different regulatory agency. Under the guidance of Director Richard Cordray, many Americans saw there were government agencies that really had no ulterior motives. Let me say this: most of those who drive the financial sector machine in this country are reliable, honest and truly work to do good each day. It’s the ones who don’t, the ones who can’t see past the dollar signs, who cause so many problems.

This week, less than a month into his term, President Trump has effectively unraveled every protection Americans had against everythingcapture-20170215-182226 from “too big to fail” banks (JP Morgan Chase, Citigroup, Wells Fargo and Bank of America), predatory college loans, insane interest rates on mortgages, and much more. By repealing Dodd-Frank, he’s also eliminating all of those financial protections the average American relies on. By the way, it’s important to note, this was the solution to ensure we would never see another mortgage meltdown that we saw in 2008 with the record number of foreclosures for millions of American families.

Here’s what you might not know:

February 5, when asked by a reporter what his intentions were, President Trump said “We expect to be cutting a lot out of Dodd-Frank.”  He said this during a White House meeting with big business leaders and bank presidents, including JPMorgan Chase CEO Jamie Dimon. That’s a problem.

It’s interesting that the president would say something like this during a meeting with Dimon and his counterparts, mostly because of the headache CFPB has been for many of these CEOs – and most certainly JPMorgan’s leader. Here are just a few of the clashes JPMorgan Chase has had with CFPB.

CFPB Orders Chase and JPMorgan Chase to Pay $309 Million Refund for Illegal Credit Card Practices

SEP 19, 2013

CFPB Takes Action Against Wells Fargo and JPMorgan Chase for Illegal Mortgage Kickbacks

JAN 22, 2015

CFPB, 47 States and D.C. Take Action Against JPMorgan Chase for Selling Bad Credit Card Debt and Robo-Signing Court Documents

JUL 08, 2015

CFPB isn’t reserved just for the banks. It has also focused on predatory lending on everything from payday loans to mortgages to aggressive collection actions:

CFPB Takes Action Against Two Law Firms for Misrepresenting Attorney Involvement to Collect on Medical Debts This one ordered medical debt collection law firms to refund $577,135 to consumers.

JAN 09, 2017

CFPB Takes Action Against NewDay Financial for Deceptive Mortgage Advertising and Kickbacks

FEB 10, 2015

CFPB Takes Action Against ACE Cash Express for Pushing Payday Borrowers Into Cycle of Debt

JUL 10, 2014

This agency has sought to protect consumers on all things financial, including student loans and the aggressive manner in which collection agencies collect debts. Imagine your parents filing for social security and being told they couldn’t until YOUR student loans from thirty years ago were paid back. That’s what this agency does – takes these kinds of disturbing companies down. Well,  maybe not so much now.

The reality is Trump had an opportunity to fix what wasn’t working with Dodd-Frank. In all honestly, the accounting and different regulations are confusing. I’m sure there are analysts who can dissect the law far better than I could begin to understand. I’ll leave that to them. In terms of the every day family with typical challenges and not knowing who to trust in the financial sector, this is a real disappointment – even if no one realizes it right away. Mark my words – you’ll soon see the next time you apply for a college loan or a mortgage and feel like a loan officer is playing fast and loose on your unfamiliarity of contracts or if an unethical debt collector begins seeking you out on social media.

I Have the Answers – They’re Just Not Politically Correct

Ever have one of those weeks when you just know you’re the one with the answers, but no one’s listening? Yeah, me too. There’s so much – I don’t even know where to start.

First up – if you haven’t seen our president’s latest fundraising efforts, fair warning – it’s a doozy. Take a look –

That’s right – he wants all our birthday bling. And apparently he’s willing to take on Bridezilla too because he’s more than happy to raid bridal showers across the nation. Here’s the kicker though – earlier this month, he’d made two stops in two days – one in Chicago and the other in Minneapolis. The trips were fundraising efforts for his campaign. Chicago Mayor Rahm Emanuel, who is also Obama’s former chief of staff, introduced him to close to four hundred people who gained entry by shelling over at least $2,500 per person. From there, he attended two more events where folks forked over $35,000 each to be in his presence. Yes – that figure is right – $35,000 and here’s the link. It’s estimated he brought in a whopping $5 million between Chicago and his quick layover in Minneapolis. And he wants my birthday present too? Not in this lifetime.

Now, in all fairness, by the time I saw the latest on his blog, I’d already had a bellyful of his antics this week. Take a look at a few of his tweets. It seems like every time he finds himself in front of a camera or in front his computer, he’s telling us what we need to do. I mean, seriously, Obama wants us to tell Congress this or that? Why? Congress isn’t listening to us (as in the American voter) no more than Obama’s listening to us.

So then, today, I’m plundering around Facebook and saw this picture that a friend had tagged. Those photos are tough to see. But the very next picture on my newsfeed is what had my blood boiling.

Am I the only one who gets the irony? Romney is as unplugged as Obama is. I am absolutely confident that if folks took that $5 Romney wants and gave it to the veteran to either reclaim his house or find another one, it would be money well-invested.

Moodys downgraded fifteen banks around the world yesterday – and the top five are based in the United States. Here’s where it gets good though. Immediately – as in within hours – the whining began. The banks were bellyaching that the passage of the Dodd-Frank reform is why they’re struggling. Uhm…if I remember correctly, it was the irresponsible actions, greed and non-compliance with the laws that were already in place that led to Dodd-Frank to start with. Had the accounting scandals, mortgage inconsistencies and downright illegal behaviors of some bank executives not been discovered, these folks would still be moving forward, playing by their own rules. They got caught, then got hit with the repercussions – and now they have the audacity to blame it on new regulations?

Alright – Eric Holder and the Fast & Furious scandal. This is just one more thing that’s had my interest all week. OK, so I know this isn’t even realistic – but it should be: charge Holder with manslaughter or accessory after the fact or something besides contempt. He – and the Obama Administration – are once again writing the rules as they go. And don’t even get me started on the Dream Act and Obama’s sudden announcement last week.

All of these current events – and it seems like the only folks who have no say in how any of it plays out are the American taxpayers. Yes, I know we go to the polls in November, but I’ve said it before – I would be surprised if there wasn’t a record set for low voter turnout. Frankly, I don’t think either of the candidates are capable of running this country.

Finally, and speaking of having no say in something – my son announced – on Facebook, no less – that he’s ready to start skydiving lessons. Just when my nerves settle down after he earns his diving certs, he announces he’s now ready for something even more dangerous. Where he got the idea that once he hit 21 he could play by his own rules is beyond me.