The Big Everything

I predict that the central question of U.S. politics for the next few decades is going to be "how much control do private corporations have over our government?" Corporate interests have either publicly or covertly been at the heart of the most recent and ongoing debates our country faces: health care, climate change, financial regulation and reform, raising the cap on oil spill liabilities for companies like BP.

You've probably heard already (but no sweat if you haven't heard) about the JanuarySupreme Court decision that allows corporations to spend unlimited amounts of money in political elections. This so-called "corporate personhood" set back the movement toward people-centered, people-owned government. Point, corporations.

Counter-point, people. Recently, the House of Representatives Financial Services Committee passed the Dodd-Frank Wall Street Reform and Consumer Protection Act out of committee and it's headed to the House and Senate floors soon for a vote.

In a nutshell, this bill could be the big everything of financial reform for the Obama presidency. Here are the highlights:

Consumer Protections with Authority and Independence: Creates a new independent watchdog, housed at the Federal Reserve, with the authority to ensure American consumers get the clear, accurate information they need to shop for mortgages, credit cards, and other financial products, and protect them from hidden fees, abusive terms, and deceptive practices.

Ends Too Big to Fail Bailouts: Ends the possibility that taxpayers will be asked to write a check to bail out financial firms that threaten the economy by: creating a safe way to liquidate failed financial firms; imposing tough new capital and leverage requirements that make it undesirable to get too big; updating the Fed’s authority to allow system-wide support but no longer prop up individual firms; and establishing rigorous standards and supervision to protect the economy and American consumers, investors and businesses.

Advance Warning System: Creates a council to identify and address systemic risks posed by large, complex companies, products, and activities before they threaten the stability of the economy.

Transparency & Accountability for Exotic Instruments: Eliminates loopholes that allow risky and abusive practices to go on unnoticed and unregulated -- including loopholes for over-the- counter derivatives, asset-backed securities, hedge funds, mortgage brokers and payday lenders.

Executive Compensation and Corporate Governance: Provides shareholders with a say on pay and corporate affairs with a non-binding vote on executive compensation and golden parachutes.

Protects Investors:Provides tough new rules for transparency and accountability for credit rating agencies to protect investors and businesses.

Enforces Regulations on the Books: Strengthens oversight and empowers regulators to aggressively pursue financial fraud, conflicts of interest and manipulation of the system that benefits special interests at the expense of American families and businesses.

California also scored points for the people with the recently defeated Propositions 16 and 17. 16, sponsored by Pacific Gas & Electric, was an effort to make it very difficult for local governments to create municipal utilities, or community wide clean electricity districts called Community Choice Aggregators (CCAs). Prop 17 would have allowed insurance companies to offer a discount to new customers who have been covered continuously for long time. Opponents argued that what it would really do would be allow insurance companies to hike up rates for new customers who hadn't been insured continuously, i.e. a lot of working poor people. Voters rejected both.

As for me, I'm on the side of the people, and I'll fight for legislation and politicians that are, too. The Dodd-Frank bill has the potential to protect American freedom and democracy in a huge way if it's successful in reining in the power of financial corporations. Stay tuned here for updates!