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Patrick McHenry (North Carolina 10)

Patrick McHenry (North Carolina 10)

Since his election to Congress in 2004, Rep. Patrick McHenry
(NC-10) has rarely missed a chance to do Wall Street’s bidding. McHenry sits on
the House Financial Services Committee as one of a bloc of Republican lawmakers
known for raking in huge sums of money from big banks and financial companies –
and for churning out legislation to make it easier for those companies to
gamble with taxpayer-backed funds, stick customers with hidden fees and
“gotcha” clauses, and enrich themselves at the expense of the rest of us.

Campaign
contributions

Financial companies and their executives have been massive funders of Rep. McHenry’s political career. In all, he has taken well over $5 million[1] from individuals and PACs associated with banks, payday lenders, and other financial and real estate interests – more than from any other sector of the economy.

Rep. McHenry’s top corporate benefactors since 2003
include Signature Bank ($150,150), Wells Fargo ($95,650), Bank of America
($95,249), FMR Corp ($88,450), the American Bankers Association ($83,000), the
Independent Insurance Agents and Brokers of America ($79,200), the National
Association of Realtors ($76,000), JPMorgan Chase and Company ($71,950),
PricewaterhouseCoopers ($71,500), Deloitte LLP ($68,500), Prudential Financial
($68,050), KPMG LLP ($67,500), and the National Association of Insurance and
Financial Advisors ($62,500).

During the current election cycle,
he has collected contributions from Signature Bank ($60,350), Rock Holdings
($55,400), FMR Corp ($44,950), Capital Group Companies ($39,300), New York Life
Insurance ($34,900), Blue Cross/Blue Shield ($30,500), Ernst and Young
($30,500), Massachusetts Mutual Life Insurance ($29,800), MetLife ($25,000),
the Investment Company Institute ($25,000), the International Franchise
Association ($25,000), Citigroup ($24,900), Capital Group ($24,300), the
National Multi Housing Council ($23,500), the National Association of Realtors
($23,000), the Independent Community Bankers of America ($22,500), US Bancorp
($22,500), PricewaterhouseCoopers ($20,000), the National Association of Mutual
Insurance Companies ($20,000), UnitedHealth Group ($20,000), Grant Thornton LLP
($20,000), Prudential Financial ($20,000), Depository Trust and Clearing Corp
($20,000), the Credit Union National Association ($20,000), the National
Association of Real Estate Investment Trusts ($20,000), Bank of America
($19,000), Wells Fargo ($18,400), Capitala Group ($18,100), Brighthouse
Financial ($17,650), the American Land Title Association ($17,500), Zurich Financial
Services ($17,500), the Mortgage Bankers Association ($17,500), the American
Bankers Association ($17,500), Paulson and Company ($17,200), Northwestern
Mutual ($16,000), Brown Brothers Harriman and Company ($16,000), KPMG LLP
($16,000), Goldman Sachs ($15,200), Capital One Financial ($15,000), the
Council of Insurance Agents and Brokers ($15,000), Travelers Companies
($15,000), the Securities Industry and Financial Market Association ($15,000),
American Express ($15,000), Humana Inc ($15,000), Deloitte LLP ($15,000), the
Real Estate Roundtable ($15,000), UBS AG ($15,000), CBOE Global Markets
($15,000), the Consumer Bankers Association ($15,000), Morgan Stanley
($14,750), and many others.

Voting
record

In 2017 and 2018, Americans for Financial Reform (a coalition of more than 200 consumer and other public-interest groups) tracked 38 House floor votes and 36 Financial Services Committee votes – 74 votes altogether – on measures making it easier for Wall Street banks and other financial companies to make reckless bets or take unfair advantage of consumers, investors, or workers, or endanger the safety and stability of the overall financial system and the economy. Rep. Patrick McHenry voted for 67 out of 74, including proposals to:

●  Sharply reduce the funding, powers, and
political independence of the Consumer Financial Protection Bureau, making it
easier for mortgage lenders, payday lenders, and credit card companies, etc. to
stick customers with hidden fees and unexpected charges (HR 10, voted
for
);

●  Repeal the “Volcker Rule,” which bars the big
Wall Street banks from playing reckless games with insured deposits and other
taxpayer-subsidized funds (HR 10, voted
for
);

●  Roll back consumer credit safeguards for
mobile (or manufactured) homes, making it easier to steer borrowers into
high-cost loans with excessive fees and interest – in an industry that has long
been rife with such abuses (HR 1699, voted
for
);

●  Weaken oversight of the Big 3 credit ratings
agencies, Moody’s, Standard & Poors, and Fitch, which made huge sums of
money by slapping triple-A ratings on toxic mortgage-backed securities in the run-up
to the financial crisis (HR 3911, voted
for
);

●  Give Wall Street banks and other large
financial companies a new way to undo rules they dislike, by requiring the
explicit approval of both houses of Congress before any major regulation takes
effect (HR 26voted
for
); and

●  Strip consumers of the right to band together
and take banks and other financial companies to court over systematic
wrongdoing, leaving people with no recourse except to submit an individual
complaint to a corporate-friendly private arbitration firm. This is a system
that effectively operates as a corporate Get out of Jail Free Card, since the
damage to any one victim of financial industry fraud and trickery is rarely
large enough to justify the cost of legal action, and arbitration proceedings
are usually kept under wraps. (HJ Resolution 111, voted
for
)

Patrick McHenry also
voted for the
Republican tax-cut plan (HR 1), from which big banks and
financial companies – and their executives – stand to gain hundreds of billions
of dollars, with the scandal-ridden Wells Fargo poised to be the leading corporate beneficiary.

And in May 2018, his support helped win passage of the
biggest rollback of banking regulations since the financial crisis. Backers
of this legislation (S 2155) described it as an effort to
provide regulatory relief for small “community banks”; but that’s a well-honed
Wall Street marketing pitch for bills whose chief beneficiaries, as a rule, are
much larger and less sympathetic institutions. In fact, the core provision of
S 2155 freed a group of 25 banks with $50-$250 billion in assets from the
heightened oversight put in place after the 2008-09 financial crisis. Far from
protecting community banks, S 2155 will spur increased bank consolidation
by letting a $50 billion institution grow up to five times bigger without
attracting any extra regulatory scrutiny – a point acknowledged by industry insiders
as soon as the bill passed. Its other unadvertised features included a
significant weakening of safeguards against predatory or racially
discriminatory lending, especially in rural areas of the country. Senator
Elizabeth Warren dubbed it The “Bank Lobbyist Act.”

All these votes occurred during the
115th Congress, which has done next to
nothing about the serious problems facing ordinary Americans (health care,
housing, etc.). If you’re wondering how the same elected body could somehow
manage to act on item after item from Wall Street’s legislative wish list, the
answer lies with Patrick McHenry and the far too many other
lawmakers like him who have built their congressional lives around the pursuit
of campaign donations from big banks, securities firms, payday lenders, and
other giant financial companies.

When it comes to the issues that
Wall Street banks and other financial firms care about, McHenry
has ignored not only the interests but the will of the people he is sworn to
represent. Ten years after the financial crisis, the great majority of voters –
across lines of geography and political party – voice their support for
existing regulations and say they would like to see the rules governing Wall
Street and the financial world made tougher. Yet in all the actions described
here, Rep. McHenry has not once taken a stand for
stronger rather than weaker regulation of banks, lenders, and other financial
entities.


[1] On 9/26/18, OpenSecrets.org showed Rep.
McHenry with a total of $5,329,392 in FIRE sector contributions, based on data
reported to the Federal Elections Commission and compiled by the Center for
Responsive Politics. Like other dollar amounts cited here, this number can be
updated by clicking the link to CRP’s website.

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