Courtesy of Pam Martens.
A provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act required that the newly created Consumer Financial Protection Bureau (CFPB) study the use of forced arbitration contracts; not outlaw them, mind you, despite mountainous evidence that they have spawned corporate kangaroo courts; just study them. Read here and here for an in-depth look at the problem.
At the behest of Wall Street lobbyists, the same tactic was used in Dodd-Frank to deal with the so-called Volcker Rule to rein in abuses by Wall Street firms engaging in proprietary trading for the house – study the issue for years to give Wall Street a free pass to continue ripping the face off the investing public.
The CFPB has posted the comments it received on forced arbitration on their web site. Along with the usual corporate shills, like the U.S. Chamber of Commerce, there is sincere public testimony.
It was both bitter sweet and inspiring to see two familiar names among the commenters: the indefatigable Paul Bland of Public Justice and the good folks at Public Citizen. Bland, Public Citizen and myself were among the early battlers of Wall Street’s kangaroo courts. While it is inspiring to see Public Justice and Public Citizen still fighting for justice for the little guy, it is bitter sweet to realize that the majority of Congress has deserted this effort, choosing now to simply kick the can down the road and let someone else “study” the problem. Is it any wonder, as we reported yesterday, that the approval rating of Congress has hit the all-time low of 10 percent.
We’ve printed excerpts from a few of the comments below. As you peruse the comments, you will gain insight into how forced arbitration is just one more artifice in a mechanized wealth transfer system – Robin Hood in reverse, sucking wealth from the pockets of the little guy into the bank vaults of the one percent.
How do you fight back? Starve the corporations that impose forced arbitration of your consumer dollars. View Public Citizen’s list: Forced Arbitration Rogue’s Gallery
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