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Money by Kevin Dooley via Flickr

Senate Democrats Caving, May Roll Back Dodd-Frank Regulations

After the recent indictments of Paul Manafort and Rick Gates which included charges for bank fraud, it should be obvious there are still problems with smaller banks making loans based on sketchy collateralization.

It’s right there in the indictments.

After reading about the recent relationship between bank fraudster Rick Gates, an identity monitoring company, and one of the biggest credit monitoring firms, it should be obvious there’s no daylight between bank fraud and other consumer financial products.

It’s right there in publicly filed records and marketing statements.

After reading about Donald Trump’s and Jared Kushner’s repeated real estate development failures, whether he borrowed the money from investment banks (Bear Stearns in 2006, in Trump’s case; Citigroup and Deutsche Bank recently, in Jared’s) or whether he licensed his brand while managing failing properties (Taj Mahal casino, Puerto Rico golf course, Panama condos, etc. failing after 2008), it should be obvious the underlying threats setting 2008’s economic crash in motion didn’t end after Dodd-Frank regulatory reform was passed. (Goodness knows Trump and Kushner aren’t the only failures, just the most well-known.)

Again, all of this is public record.

Which is why it is absurd that Democratic Senators are caving in and rolling back Dodd-Frank regulatory reforms with S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act.

Do community banks need some relief from the additional expenses of compliance? Perhaps — but how does rolling back part of Dodd-Franks ensure that bank frauds like Rick Gates and Paul Manafort are stopped? Something isn’t working; the answer may be more, not less regulation.

Do Too-Big-To-Fail banks need to ensure they can’t crash the economy by virtue of their size? Sure, but what has been done to prevent more piecemeal failures like those Trump’s circle exemplify?

The capper? The CBO score on this bill sucks:

– The bill would increase federal deficits by $671 million over the 2018-2027 period
– And “would increase the likelihood that a large financial firm with assets of between $100 billion and $250 billion would fail.”

Read this piece by Mike Konzcal, Why Are Democrats Helping Trump Dismantle Dodd-Frank?

Also Matt Yglesias at Vox, and Molly Hensley-Clancy at BuzzFeed — the latter points out voters want more regulatory control on banks, not less.

See also Indivisible’s backgrounder-explainer and @Celeste_P’s call script on S.2155.

And then call your senators and tell them to vote against S.2155, then come up with a better solution to help community banks. Enlist friends and family to make calls; this bill is expected to go to a vote late today or first thing in the morning.

You might also point out to Senate Dems if smaller community banks fail because of Trump’s policies and his circle’s kleptocracy, it’ll be on them for aiding and abetting Trumpian nonsense when they are up for re-election.

EDIT: I forgot you may not have this phone number memorized as I do —

US Capitol Switchboard (202) 224-3121

Make the calls now!

Wednesday Morning: Quelle couleur est-ce?

I think vestigially there’s a synesthete in me, but not like a real one who immediately knows what colour Wednesday is. — A. S. Byatt

A lot of people will ask what day it is today, but few will ask what color.

Ed Walker put up a great post late last evening, one that deserves more oxygen. Do check it out.

Hospital held hostage for millions by ransomware
Hey Hollywood! A hospital in your backyard has been “infected” with ransomware, their enterprise system tied up until administration coughs up $3.6 million.* Didn’t see that coming, huh? Law enforcement is involved, though if they haven’t managed to resolve other smaller ransomware attacks, they won’t solve this before it critically affects patients’ care.

This is a pretty good (if unfortunate) example of business continuity crisis. Remember Y2K and all the hullaballoo about drills and testing for enterprise failure? We still need that kind of effort on a regular basis; how do you run your biz if all electronics go dark, for any reason?

(* US articles say $3.6M; CAN article linked says $5M. Currency difference, or an increase in the demand?)

Google found critical vulnerability in GNU C Library
CVE-2015-7547: glibc getaddrinfo stack-based buffer overflow” Huh? What? If you read Google’s blog post about this yesterday, you were probably scratching your head. Some Googlers struggle with writing in plain English. Here’s what tech news outlets interpreted from that google-degook:

Ars Technica: “Extremely severe bug leaves dizzying number of software and devices vulnerable
BBC: “Glibc: Mega bug may hit thousands of devices
Threatpost: “Critical glibc Vulnerability Puts All Linux Machines at Risk

In a nutshell, if you’re running Linux, patch your systems, stat.

Petroleum’s still a problem

  • Iran’s not going along with Saudi-Russia-OPEC agreement on oil production limits. Iran wants to return to pre-sanction production levels before it makes any concessions.
  • Oil glut and tanked prices creates secondary challenges. Saudi’s youth now have entirely different prospects for employment now that oil cannot guarantee national wealth or careers with good pay. Will this cause political volatility in RSA? Wonder what will happen in smaller oil-producing countries like Venezuela and Ecuador?
  • Weird outliers buck trend: Indian oil producer Chennai had a strong Q3, and First American Bank more than doubled its stake in oil development firm Anadarko. Neither of these stories make sense when oil prices have and are plummeting and show no solid sign of improvement in the next year-plus.

TBTF is still too TBTF
Neel Kashkari, Minneapolis Fed Reserve president, called for the breakup of Too-Big-to-Fail banks yesterday, as they are still a risk to the economy. Didn’t see that coming from a fed president, especially Kashkari.

Biggest tech story today: Judge ordered Apple to help hack San Bernadino gunman’s phone
Apple’s been fighting government pressure on backdoors to its products. The fight intensified after federal judge Sheri Pym ordered Apple to cooperate with the FBI to unlock encryption on a county-owned phone used by San Bernadino gunman Syed Farook. Begs the question why any government agency — local, state, or federal — would ever issue a phone with encryption the government could not crack in the first place. Seems like one answer is a government- and/or business-specific encryption patch to iOS: [IF phone = government-issued, THEN unlock with government-issued key]. Same for business-issued phones. Your own personal phone, not issued by a government agency or business? No key, period.

Phew. That’s enough for a Wednesday. Hope we can coast downhill from here.