Letter: The threat of another Great Depression

Monday, March 12, 2018
The threat of another Great Depression

The U.S. Senate has forgotten what led to the 2008 financial crisis that left our economy in shambles and resulted in thousands of New Hampshire home foreclosures. I’m very concerned that our senators, Maggie Hassan and Jeanne Shaheen, may support a bill (S. 2155) that rolls back financial regulations. This bill is being sold as a moderate proposal to help community banks and credit unions. But that’s far from the truth.

In fact, a Congressional Budget Office analysis predicts that this bill would increase the likelihood of future bank bailouts, and that it would deliver benefits to mega-banks and foreign international banks like Deutsche Bank and Santander. This bill would also loosen mortgage protections and undermine a tool to detect discrimination in mortgage lending. There is even a proposal in the bill that would allow manufacturers of mobile homes to steer potential buyers into tricky, deceptive loans.

Many of us are still recovering from the harm caused by the last financial crisis, yet the Senate through this bill could be setting the stage for another Great Depression.

There are two clear sides in this debate: Wall Street lobbyists and that of American homeowners, student loan borrowers and everyday consumers. The Consumer Financial Protection Bureau has stopped enforcing rules that prevent predatory lending. This bill would allow predatory practices as a matter of right. The question is, which side are our senators on?