Thursday, September 29, 2016

Congress Continues to Embarrass Itself

Poor John Stumpf.  No one should have to go through the inquisition that he is dealing with today before a Congressional committee.  The ignoramuses on the House Banking Committee are pilloring the poor guy for a problem that there is no real indication that he could do much about.

If there is a problem, it is not for the Congress to do anything about it.  It is a job for shareholders and, if criminality is involved, the appropriate law enforcement authorities.

The net upshot of all of this will be more regulation, higher fees, and fines that shareholders will have to pay (not the bad guys, but innocent shareholders pay the fines that are levied).  So, who loses? Middle class Americans.  They will face higher fees, fewer services from a banking system that is constantly looking over its shoulder to see if some ignorant Congressman or Congresswoman is looking to make a headline.

Who wins?  No one really.  But a bunch of ignorant, arrogant Congressmen and Congresswomen get to put this guy through a public hell for no real purpose.  Shame on Congress!

This is a perfect example of how middle class Americans will be hurt by politicians seeking a headline.  Shareholders should not be punished for this, but they will be and so will consumers.  The punishment dished out to average Americans by the Congress and the regulators will be far, far worse than the original problems that have surfaced at Wells Fargo.

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