Wall Street wins big as Senate votes to roll back regulation allowing consumers to sue their banks
Vice President Pence cast a tie-breaking vote late Tuesday to block new regulations allowing U.S. consumers to sue their banks, handing Wall Street and other big financial institutions their biggest victory since President Trump's election.
The rules would have cost the industry billions of dollars, according to some estimates. With the Senate's vote, Wall Street is beginning to reap the benefits of the Trump administration focus on rolling back regulations it says are strangling the economy. The vote is also a major rebuke of the Consumer Financial Protection Bureau, which wrote the rules, and has often found itself at odds of Republicans in Congress and the business community.
At issue is the fine print in many of the agreements that consumers sign when they apply for credit cards or bank accounts. These agreements typically require them to settle any disputes they have with the company through arbitration, in which a third party rules on the matter, rather than going to court or joining a class-action lawsuit.
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The CFPB rule would block mandatory arbitration clauses in some cases, potentially allowing millions of Americans to file or join a lawsuit to press their complaints.
After more than four hours of debate, the Senate voted 51 to 50 to block its implementation. Pence was forced to cast the deciding vote shortly after 10 p.m. when two Republicans, Sens. Lindsey Graham of South Carolina and John Kennedy of Louisiana, opposed the resolution. House Republicans already passed legislation to block the rule, which now needs the approval of President Trump.
“Tonight’s vote is a giant setback for every consumer in this country. Wall Street won and ordinary people lost," CFPB Director Richard Cordray said in a statement minutes after the vote. The legislation "preserves a two-tiered justice system where banks can have their day in court but deny their customers the same right."
Hey, America, wake the hell up!
Nothing like flipping the bird to American consumers. Again.
Dear Friends Larry Hampton and Lib 50: This is indeed disheartening.
E.
Remember we bailed out these SOB's and now they back in the pockets of our politicians. Wonderful.
Yay.. the little guy wins again/ sarc.
They've never been outta their pockets; Justice for Americans effected by '08 has been stifled, and nothing at all has been done to correct the bad practices that led to that crash.
WE NEED to get corporate money out of politics.....
Couldn't agree more...brings us to the how?
I'm not at all surprised. It appears to be business as usual. The leaders do not represent or work for the people. They work against the people.