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House Republicans Propose Cutting Consumer Protection Bureau And Foreclosure Prevention

By Pat Garofalo  

"House Republicans Propose Cutting Consumer Protection Bureau And Foreclosure Prevention"

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House Republicans have already shown that they’re willing to sacrifice health care, food stamps, and education upon the altar of deficit reduction in their latest budget. Now financial regulation can be added to the list, courtesy of a proposal unveiled today by the House Financial Services Committee today.

House Republicans on that committee — which has become the second most lucrative committee for fundraising — today released their plan to come up with the cuts mandated by the budget authored by Budget Committee Chairman Paul Ryan (R-WI). Their proposed cuts include:

ELIMINATING RESOLUTION AUTHORITY: This is a power included in the Dodd-Frank financial reform law of 2008 that allows the government to dissolve a failed financial firm without resorting to the ad hoc bailouts of 2008. Ryan explicitly called for its repeal in the budget, even though it would leave the government powerless to act should another big bank bring the economy to the brink of disaster, other than handing it a bailout.

ELIMINATING FORECLOSURE PREVENTION PROGRAM: The Home Affordable Modification Program (HAMP) has undoubtedly fallen woefully short of its goals, reaching far fewer homeowners than it was supposed to. But House Republicans want to eliminate it entirely, even with 3.6 homeowners estimated to go into foreclosure in the next two years.

CUTTING THE CONSUMER PROTECTION BUREAU’S BUDGET BY TWO-THIRDS: The Consumer Financial Protection Bureau has a budget of just shy of $600 million for fiscal year 2013. House Republicans propose , even as the agency begins reining in abuses in the student loan and home mortgage industries.

House Republicans have been trying to water down Dodd-Frank ever since it passed. This budget proposal from the Financial Services Committee is just the latest round in the effort to ensure that the committee follows its chairman’s order to “serve the banks.”

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