RMUSE: There was, and still is, outrage among progressives and liberals alike about the so-called end of the 2010 financial reform law (Dodd-Frank), but the provision inserted into the CRomnibus is relatively insignificant. The lion’s share of the 2010 financial reform law is completely intact, and since the President prevented a Republican Congress from using funding the government to repeal the entire law, it is safe. There is an easy to understand explanation of why the “push-out” rule governing “some” commodities is the least important aspect of Dodd-Frank here. Not only does the provision in the CRomnibus not affect all derivative swaps, it has no impact on most of them and leaves the highly effective financial reform law intact and Republicans have no leverage to repeal or gut the successful law. One has to give Republicans credit for creativity in devising so-called poison pills to kill the funding bill such as allegedly eliminating the Clean Water Act’s enforcement power. The provision in the CRomnibus prohibited the EPA from using the CWA to regulate backyard and agricultural ponds and ditches, a provision that was already firmly entrenched in the law. However, without investigating exactly what the Republican rider actually said, the idea drew outrage from environmentalists concerned the CWA was finished; including this column. Even though the idea of cutting retirement benefits is abominable, the rider in the CRomnibus was supported by unions and multi-company plan administrators because some badly-managed pension funds are on the verge of insolvency; and soon. The director of the National Coordinating Committee for Multi-employer Plans said “This bipartisan agreement gives pension trustees the tools they need to maintain plan solvency, preserves benefits for the long haul, and protects the 10.5 million multi-employer participants. With time, and money, running out on the retirement security of millions of Americans, moving this bipartisan proposal forward now is not only timely, but necessary.” The danger, however, is allowing the Koch brothers’ State Policy Network and American Legislative Exchange Council use the threat of insolvency to go after other pension plans, including public sector plans that are very healthy due to Wall Street’s growth thanks to President Obama’s handling of the economy. But now that Republicans cannot use funding the government as a hostage, their promise to the Koch brothers will go unfulfilled.
Posted on: Thu, 18 Dec 2014 19:06:40 +0000
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