The Republicans have started work on undoing the damage done to the banking industry by Dodd-Frank. Predictably Democrats like Elizabeth Warren have gone all out in defending this bill. It is one thing to support a bill in its inception without seeing its real world consequences. It is quite another to keep supporting it when the bill is put in practice. At this point we have to ask ourselves. Have Elizabeth Warren and the Democrats been bought by lobbyists from Giant banks?
Dodd Frank has been disastrous for the financial industry. Elizabeth Warren and the Democrats say they support the bill because they feel that banks should be reined in from becoming too big to fail. Four banks went from controlling 11% of the banking industry to controlling nearly half after Dodd-Frank. Giant banks went from controlling 23% of the banking industry to controlling more than 60%.
Dodd-Frank has decimated the small banks that Elizabeth Warren and the Democrats say they want to protect. Since Dodd-Frank 25% of small banks have closed. Bank of America controls more of the banking industry than all small banks COMBINED. Before Dodd-Frank hundreds of new banks were opening up. After Dodd-Frank only 3 new banks opened up. There used to be 14000 banks in America now there just a little more than 6000 and dwindling.
Dodd-Frank has been hugely beneficial for the big banks. It has helped them clear away the competition and grab more of the market. They went from being too big to fail to too giant to fail. If Elizabeth Warren and Democrats were serious about the threat of banks that are too big to fail then they would join President Trump in the Republicans in finding a solution for it. The fact that they insist on supporting a bill that has had the empirical effects Dodd-Frank has had should raise suspicion on their motives. After all what better way to help big banks than by creating a loyal opposition.
Follow The Money
In order to find out who the banking industry has purchased we just have to follow the money. In recent elections Democrats have been raising a lot more money than Republicans. Obama and Clinton both outraised and outspent Romney and Trump in their elections. The difference was glaring in the last election as Clinton spent more than twice President Trump did 1.4 billion to 600 million.
The raw numbers are not enough to go on of course. After all what if all 600 million of President Trumps warchest came from big banks but none of the 1.4 billion of Clinton did? In the last election wall street donated 48.5 million to Clinton and donated 19000 to President Trump. According to opensecrets.org Chase, Citibank, and Bank of America are among the top 10 donors of Clinton. These companies appear nowhere in the top donors of the Trump campaign.
Given all the money that the big banks are giving to Warren and the Democrats is it any wonder that they are protecting a law that allow giant banks to eliminate their competition?