A Great Deal for Banks, Not So Much for American Jobs

A Great Deal for Banks, Not So Much for American Jobs

On Thursday, a bill progressives had dubbed the “Bank Lobbyist Act” was signed into law by President Trump after passing the House 258–159 this week. The bill rolls back a number of Dodd-Frank regulations in order to aid a “suffering” banking sector—even though banks have reported record-high profits this year. And while the bill was on the floor in each house, Republican leaders refused to include amendments that would have limited banks’ offshoring of American jobs.

Since the GOP tax reform passed last December, many economists have warned that it will incentivize corporate offshoring—a threat that even the Congressional Budget Office was forced to acknowledge, as I reported in April. Banks are leading the charge to offshore jobs, particularly in their call centers, laying off workers at home in order to hire cheaper, exploitative labor in other countries. The regulatory rollback Republicans passed this week threatens to put this offshoring into overdrive and only continues to put big business before working- and middle-class Americans.

An amendment to the banking bill, proposed by Democratic Senator Elizabeth Warren and which ultimately failed, would have made banks that offshore American jobs ineligible for the deregulations. In the House, Democratic Representative Mark Pocan of Wisconsin put forth a similar amendment during debate, but Republican House leaders refused to allow the amendment to be considered.

“Republicans keep passing sweetheart legislation for banks while refusing to allow any debate or votes on provisions to slow down or prevent these banks from shipping more and more American jobs all around the world,” Shane Larson, legislative director for the Communication Workers of America, said in a statement.

A number of Democrats (many of whom have received donations from the banking industry) signed on to the bill, and Republicans hope that this legislation lays the groundwork for further bipartisan gutting of Dodd-Frank—likely without consideration of banks’ disappearing U.S. jobs.