• Lisa Simpson
• Dec 21,2010
• In: Foreclosure

Serving the Banks is the Prime Job of the Regulators

The forthcoming chairman of House Financial Services Committee, Spencer Bachus (Alabama/Republican) has openly admitted that serving the banks is the prime job of the regulators; as such they should play the role of the subject in relation to the king – the bank.

Bachus said, “In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks”. He was speaking at an interview taken by Birmingham News.

The Republican Party assigned Bachus to be the next chairperson of the House Financial Services Committee – a most powerful post. It has the task of monitoring activities of banks, the financial markets and credit matters related to housing and consumer interests.

The Democrats reacted to the remark by saying that it was a Freudian slip. They nicknamed man from Alabama as “Big Bank Bachus”. The party claimed that the new house controlled by the Republican will place the interests of financial entities before that of the people of America.

Jesse Ferguson, spokesperson of Democratic Congressional Campaign Committee said, “Congressman Spencer ‘Big Bank’ Bachus has given Americans a startlingly honest answer about the House Republican agenda – do whatever is good for the big banks and Wall Street special interests, rather than what’s good for hardworking Americans”.

Speaking to Birmingham News afterwards Bachus said that he only meant Congress should not manage every small detail of the operations of banks.

Bachus form the 6th district of Alabama has been all along his career in the House for 18 years collected millions from monetary interests; it included over $1 million solely from the commercial banks as per the findings of Center for Responsive Politics. From real estate group, from securities cum investment companies and from credit firms he had taken $80,000, $700,000and $415,000 respectively. As chairperson he will have tremendous clout over them.

He was intimately involved with 2008 TARP scheme of $700,000 billion – a programme sarcastically referred to as the “bank bailout”. It fueled public ire although financial collapse was averted. TARP was given the green signal by both the parties. Rep Barney Frank (Democrat) played a pivotal part in bringing about fundamental changes in the regulatory financial reforms initiated by President Obama last July.

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