Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

Good for Joe Klein for pointing out the lunacy of the Republican effort to defund the financial regulation reform bill passed last year:

The Dodd-Frank law was an imperfect remedy….But it did boost the power of the SEC and CFTC to regulate derivatives trading, and it set up a new agency, the Consumer Financial Protection Bureau (CFPB), to protect consumers from the shyster army peddling tricky mortgages, usurious credit-card rates and unscrupulous payday-check-cashing shops. The agencies need larger payrolls to perform those functions, and the Republican House has now stripped much of that money from the federal budget. “It’s a back-alley maneuver,” says Representative Barney Frank, whose name is on the law. “Unlike health care or environmental regulation, the Republicans didn’t try a frontal assault. They hid behind the budget, which means that they’re embarrassed by this. They don’t want people to know that they’re letting Wall Street off the hook.”

….And then there’s the question of Elizabeth Warren, the Harvard law professor who invented the idea of the Consumer Financial Protection Bureau and should be its first director. The Administration seems undecided on whether to appoint her, fearing a Senate confirmation battle that could last for months. “The banks are scared to death of her,” one Senator told me. “She speaks in clear, simple sentences. That terrifies them.”

Which means this is a fight worth having — and a way to dramatize the complicated issues at the heart of regulatory reform. The President should appoint Warren. The Senate should be forced to vote on her, so the public will know who really wants to clean up Wall Street and who doesn’t.

No, Dodd-Frank wasn’t perfect. In fact, that’s being rather too nice about the whole thing. But it was at least a step in the right direction following an unprecedented meltdown of the global economy caused almost entirely by the misbehavior of the American financial industry.

One of the themes of Jacob Hacker and Paul Pierson’s Winner Take All Politicsavailable soon in paperback! — is that income distribution is far more influenced by politics than most economists think. One of the reasons I was so enthusiastic about the book is that it mirrors my own views, which have become rather more radicalized over the past three years. Think about it: during the aughts the financial industry was so wildly out of control that Wall Street touched off the biggest financial collapse and biggest global recession since World War II — a recession that’s required unprecedented government intervention to stabilize; featured massive bailouts of the banking industry; and has caused widespread misery among the working and middle classes, including an epidemic of home foreclosures, plummeting state-level services, and an unemployment rate that’s still near double digits more than two years later. And yet, Republicans were not only united in trying to prevent any action whatsoever to re-regulate Wall Street last year, they’re making it one of their top priorities this year to defund the very modest bit of regulation that was passed over their near-unanimous opposition.

I don’t know how you can watch all this unfold and not conclude that the super rich and their interests are all but politically invulnerable in America these days. It’s both wrong and dangerous, and more of us should be pushing the public’s nose in it. The whole thing is obscene.

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate