It might be easy to forget with the election media going around. But a very serious financial fraud case was before the Senate the other day.
It might also be easy to forget that Republicans have consistently taken a soft touch to Mega Corps and Financial Fraudsters. In fact, during this time period, Republicans have tried to claim that Democrats are the party helping these people out. Considering the last 40 years of legislation in this country, could one think of a more gross lie and hypocrisy? I mean, Republicans have been playing the lower the regulations, lobby for the rich, and "Corporations are people my friends" for 40 years. That's been their bread and butter.
Because, the argument goes, if we just give the super wealthy everything they want, jobs will fall from the heavens. High paying jobs. And everyone will get ahead.
But as demonstrated very starkly here. That's just not the case.
In the Wells Fargo Fraud, the average worker, 5,300 of them, that never went any higher than a regional manager (i.e. no one at the Corporate executive level) were fired for trying to meet the sales goals laid out by the executive board. Wells Fargo has pimped the idea of opening as many accounts as possible for its customers. The data show that Wells Fargo compared to other banks are multiples above. Their customers average 5, 6, 7 accounts.
Other big banks average fewer than three accounts per customer. But you set the target at eight.
And it was explicitly a strategy from the board and from the CEO. During the last 5 years or so, Wells Fargo stock returned an 80, 90% gain. Which of course, benefited the executives pushing the strategy. And that really is the point of all this. Top executives have personal gain that is not in line with what is best for the company, for the customers, or for the average employee. So this notion that if we just remove regulations and lower those taxes the average person is going to benefit is nonsense.
If the company suffers, the average person will lose a lot more. The CEO/Executives/Board already have their huge gains. Their 100s of millions. If the company goes under, they will be able to get by on those millions. The employees get fired over this scandal. Again, mostly lower paid employees. The customers have been defrauded. Those are the people who are hurt.
And for those Republicans who are trying to steer the target elsewhere (while they run a Billionaire for president who has deep and corrupt ties with banking cartels).....
Ryan's budget would give less money to the market cops at the Securities and Exchange Commission. It would also get rid of the CFPB's independent funding — right now it gets its money from the Fed so that it's free from influence from members of Congress who might not be free from influence from bank lobbyists — and replace its independent director with a five-person bipartisan committee. His anti-poverty plan, meanwhile, would make it legal for financial advisers to once again recommend things that are in their own — but not their clients' — best interests. (Believe it or not, that was changed only in the past year). And on top of that, House Republicans want to make it easier for penny stock companies — which, the SEC has warned, are a veritable playground for scammers and other assorted manipulators — to issue shares without as much oversight.
Republicans are actively trying to allow increasing levels of fraud, protect the fraudsters, give the average person little recourse when they suffer fraud, and chopping down the non-partisan entities who would hold fraudsters accountable.