Page 107 - TrumpsEconEra_Flat

Trump’s Economic Era

shareholders and unsecured creditors, and
unsecured creditors ...”

“16. ... Title II requires that the losses of
any financial company placed in receivership
will not be borne by taxpayers, but by common
and preferred stockholders, debt holders, and
other unsecured creditors ...”
An option to the Dodd-Frank Law would be to
establish a local public bank for municipalities as North
Dakota did with the Bank of North Dakota. This bank
was unaffected by the bank meltdown of 2007-2008.
The Bank of North Dakota treats its funds as a utility
while investing in local projects; no authority can
confiscate the depositor’s money. For more
information go to www.publicbankinginstitute.org.

THE FSOC and the CFPB

The Dodd-Frank Law created the Financial
Stability Oversight Council (FSOC) and the Consumer
Financial Protection Bureau (CFPB). The FSOC can
declare a financial firm systemically important based on
any risk-related factors that it considers appropriate.
Companies tagged with this designation are subject to
an increase in government regulation. The CFPB
jurisdiction includes banks, credit unions, securities
firms, payday lenders, mortgage-servicing operations,
foreclosure relief services, debt collectors and other
financial companies operating in the United States. The
CFPB is more concerned with the safety of consumers
more than the soundness of banks. It can punish lenders
who in good faith offer loans that the bureau later
believes to be unfair, deceptive, or abusive. These open-

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