With the election less than three months away, Republican presidential hopeful Mitt Romney and his VP pick, Paul Ryan are taking a big gamble – and it could affect every American’s finances. While it’s becoming slightly confusing for some Americans, there are many questions about the risks they’re taking on the American financial sector.
Romney has not made it a secret his dislike of the 2010 Dodd-Frank financial reform law. This is what put into place the big changes of recent years, including the new Consumer Financial Protection Bureau. It also puts into place big changes in financial regulation efforts. Romney has promised he would immediately repeal the law if elected president. Worse, he and Ryan seem to disagree on a few important aspects of the law as it is; now -and as far as Romney’s concerned – offering up a replacement isn’t a priority. Could it be this keeps the pubs from taking the White House in November or will the nation see an annihilation to a powerful financial law when they win?
The Wisconsin representative tapped for Romney’s running mate has already written a budget and it’s been approved by Republicans in the House. His plans don’t repeal the law in its entirety, though it does eliminate sections dealing with authority over various resolutions – which is likely the reason he gained House support. This would allow failing financial firms to unravel with no bailouts. The FDIC would step up to the plate and break the too big to fail banks. The taxpayer losses would be recovered via the failed bank’s assets.
While there are a few flaws or concerns, there’s no denying this is a reasonable “happy medium”. Remember, in 2008, those too big to fail banks weren’t forced to close, but instead, were given taxpayer dollars – billions of them, actually. Even Fed Chairman Ben Bernanke and former Treasury Secretary Hank Paulson agree that had Ryan’s plans been in place at the onset of the recession, the economy might not have suffered such a brutal hit. They both say AIG could have been put into a conservatorship which would have provided a different outcome not only for Wall Street, but American taxpayers, too.
Unfortunately, many are saying both candidates – but more so with Ryan – are back peddling, rescinding their various public statements and opposing parts they supported at one time. There was a time when Ryan appeared to be in support of those sections that he eliminates in his proposed plan. He also supported – and perhaps still does – the Volcker Rule. Referring to it as a “casino like mentality of Wall Street”, many are already questioning just how strong the Romney/Ryan ticket can be when only one supports a complete repeal of Dodd Frank.
If you’re thinking it’s all so confusing, you’re not alone. If the two don’t find a way to present their campaign on a unified and seamless platform, frankly, they don’t stand a chance in an election that has pollsters reporting the nation is split right down the middle in who they support. Unfortunately, time’s not on their side either. With eighty days that separates us from the day we’ll visit the polls, anything less is sure to lead to an outcome neither want.