Take It To The Bank.

Congresswoman Maxine Waters (D CA) is the chair of the House Committee on Financial Services. This past Tuesday, the Committee was holding a hearing on banking practices and had presidents of banks as witnesses.

This exchange between Waters and the witnesses took place:

From the Daily Caller:

Waters began by explaining the student debt crisis, saying, “Today, there are more than 44 million Americans that owe … $1.56 trillion in student loan debt.”

She added, “Last year, 1 million student loan borrowers defaulted which is on top of the 1 million borrowers who defaulted the year before.”

Then, Waters turned the questions on the bank executives, asking what they intended to do about the student debt crisis: “What are you guys doing to help us with the student loan debt? Who would like to answer first? Mr. Monihan? Big bank?”

“We stopped making student loans in 2007 or so,” he responded.

“So you don’t do it anymore? Mr. Corbyn?” she pressed the next banker.

“We exited student lending in 2009,” he replied.

“Mr. Dimon?” Waters tried again.

“When the government took over student lending in 2010, we stopped doing all student lending,” he said.

Think about this for a moment. The head of the Committee on Financial Services in charge of overseeing banks and lending institutions doesn’t know that the government took over student loans in 2010? (Which arguably led to the education boom.)

How could she not?

In 2012, Waters voted for HR 4872 which was the bill where the government took over student loans. The same regulation was attached as a rider on the Affordable Care Act, which Waters voted for as well.

Yet here she is trying to make banks and bank presidents accountable for something they had nothing to do with.

Waters also had this exchange with Treasury Secretary Steven Mnuchin:

It seems that Waters gets the best of Munchin until you realize that Munchin, not Waters, was following the rules of House Committees which state that a witness must be excused from hearing followed by the chair striking the gavel. He is not allowed to leave the hearing until that criteria is met, which explains not only his confusion, but his reluctance to leave.

Waters’ statement that there is a “new chair in town,” only shows her disdain for the rules upon which she voted and is obligated to adhere to.

Waters has slept been through many committee meetings and for her not to know the basics of running a meeting is really strange.

Her inability to know and remember the bills she voted on and helped pass is even worse.

Her desire to pin the consequences of those bills on others is a failure of her morals and any accountability.

Waters needs to be removed from the Chair of the House Committee on Financial Services and replaced with someone who is awake, intelligent, less embarassing and honest.

One Response to “Take It To The Bank.”

  1. Percy Veer says:

    Unbelievable, how did she become the chair of the financial services committee with such an utter lack of understanding of how things work. I think the answer is that they care more about making political points than solving problems.

    It also shows why socialism doesn’t work, when you nationalize a program (like student loans) it doesn’t work because unlike the private sector, there is no accountability. In the private sector where when a business fails it goes bankrupt and is forced out, when a government program fails they just pass the losses on to the taxpayers. I wished one of those bank execs had asked the financial services commission what they are doing loaning out 1.56 trillion when they’ve had 2 million in loan defaults in the last two years alone putting taxpayers on the hook for all these bad loans. Common sense would tell you that you don’t lend money to someone unless you have a reasonable expectation that they will be able to repay the loan.