Wednesday, November 7, 2012

Wall Street Loses Huge Lobbying Battle




Through much of the campaign, major Wall Street banks have nursed visions of a Republican majority capturing control of the Senate and then weakening regulations imposed following the financial crisis of 2008.

The financial services lobby had hoped the end of the Democratic majority would spell the demise of various constricting provisions of the Dodd-Frank reform bill, which limits speculative activity. As banking trade groups poured campaign contributions into key Senate races in support of Republicans, they especially sought to weaken the newly formed Consumer Financial Protection Bureau.

But as it becomes clearer that Republicans are likely to remain the minority in the Senate, leaving the key committees in Democrats' hands, the banking lobby is reckoning with a discomfiting reality: Dodd-Frank is probably here to stay, and the fledgling consumer protection bureau is likely to endure. In short, for Wall Street and its well-compensated army of lobbyists, the election of 2012 is already shaping up as a lost opportunity…..

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