Since the CBC tends to vote as a bloc, and, as CBC head Marcia Fudge admits, most of them don’t know much aboutfinancial services law and usually defer to CBC members on the financial services panel, the CBC is an easy mark for sophisticated lobbyists. It’s also easy because, as HuffPost notes, white lawmakers aren’t quick to criticize the CBC. A lobbyist explained to HuffPost how it works:
“We go right to the CBC because they are open-minded and they often vote as a bloc,” he says, asking for anonymity because he frequently relies on CBC members for support on deregulation bills. “And the professional left is scared of them. Every white liberal — media, politician, advocacy group — knows better than f*cking with a CBC member.”
Since joining forces with Wall Street, several CBC members have been siding with Republicans on financial issues and having a devastating impact on financial reform:
In February 2013, Moore and Fudge joined three Republicans to introduce HR 677, a bill that would allow corporate conglomerates totrade derivatives among their myriad subsidiaries without following Dodd-Frank’s trading rules. The bill infuriatedfinancial reform watchdogs, who say it makes it much harder for regulators to see risks accumulating inthe system and could facilitate international tax-dodging. Moore’s measure probably won’t ever get a vote on the House floor, but it doesn’t need to. After proposing a relatively robust rule on the topic, the Commodity Futures Trading Commission switched course last year and finalized a regulation that adheres closely to Moore’s language.
Members of the CBC have also been sneekily sending letters to regulators “championing” the rights of Wall St. banks. Of course, when these same CBC members give press conferences championing social justice, they don’t mention that they themselves are already in the pockets of Wall St. That doesn’t sell well when you’re on MSNBC or the Tom Joyner Show.
In another example, CBC members waged war against the Volcker rule in 2012, a rule popular among mainstream and left of center liberals that “bans banks that receive taxpayer perks from making speculative trades for their own accounts.” Meeks, Scott, Sewell, and Clay were all onboard with killing the rule. Moore, who has also been a key member in supporting thebanking industry, has a chief of staff who is onboard with thefinancial services lobby as well as a former staffer who is in the pocket of the industry as well.
At one point, Rep. Maxine Waters reportedly had a contentious argument with Rep. Alcee Hastings over his selling out to big money interests. During the disagreement, Hastings allegedly admitted he’d sold out, just for a higher price than Waters implied:
What was more embarrassing than selling out, Waters told her assembled colleagues, was selling out cheap to nickel-and-dime scammers like the for-profit college industry. If you’re going to sell your soul, she admonished, have some self-respect and sell high. (Hastings didn’t dispute the conflict, but he did dispute Waters’ point. “It would be a mistaken premise,” he says, smiling. “There are a hell of a lot of for-profit schools.”)
Regarding financial reform, Waters has been fighting for the soul of the CBC.
“It’s critically important that we understand the significance of that reform, that we send the message that we’re about protecting our taxpayers and investors, ” said Waters.
Waters may be in for the fight of her life.
