Romney and bank regulation

Mitt Romney has the typical Republican stance on regulation of banks (pay link) and regulations in general:

Republican Mitt Romney is pledging, if he is elected president, to repeal the Dodd-Frank financial regulations, a position favored by donors on Wall Street who have sent millions the candidate’s way. But he is nearly silent on how – without the regulation – he would prevent Wall Street from once again engaging in the risky practices that helped cause the 2008 financial crisis.

The industry objects to the new rules and restrictions, and Romney said in May 2011 that the law “scared the dickens out of the financial sector and caused banks to pull back from lending.’’ He has joined his Republican presidential rivals in calling for an outright repeal of the legislation.

Romney has criticized both the Consumer Financial Protection Bureau, which is designed to monitor things like credit card applications and home mortgages, and the Financial Stability Oversight Council, which is supposed to monitor for systemic risks in the markets. Romney says both are too powerful and run by unelected bureaucrats.

Republicans would like to get rid of almost all these regulations without replacing them. The problem is that the financial industry crashed the world economy and so people don’t much like it. Therefore they pretend that they’ll replace it with something–of course it has to be generic, because anything specific will cause problems with the financial industry which gives them so much money (they also give Democrats a lot of money which is why the regulations were watered down). If you believe that the financial industry will now be responsible then Romney’s your guy. If you think they’ll do most anything to make a bigger profit, then … ok neither candidate is really for you, but Obama is a bit better.

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