At a recent House Committee hearing, it was a moment of pure joy to watch a Democratic Party freshman Rep. Katie Porter take the clueless JP Morgan CEO Jamie Dimon to task on how his front-line workers would have to budget on an entry pay scale of $16.00 per hour. Now just translate these budgeting challenges with someone who earns closer to the current minimum wage scale of $7.20 per hour.
Katie Porter biography as per Ballotpedia:
Porter defeated Republican Mimi Walters in the 2018 general election by a vote of 52.1 percent to 47.9 percent. Porter ran on progressive campaign themes including Medicare for all, affordable college, abortion access, and gun reform. To read about Porter’s stances on various issues, click here.
“Katie Porter was endorsed by progressive political action committee Democracy for America”
“Porter’s work experience includes serving as a law professor for the University of California Irvine and other universities, serving as a consumer and bankruptcy attorney for the Consumer Financial Protection Bureau, the World Bank, the Federal Judicial Center, and the Uniform Law Commission, and clerking for Judge Richard S. Arnold of the Eighth Circuit Court of Appeals. She has also written three books and published research in a number of national law journals. Porter earned a bachelor’s degree from Yale University and a J.D. from Harvard Law School. She has three children”
At the beginning of the 116th Congress, Porter was assigned to the following committees:
After the 2008 Great Recession, the US government had to step in to regulate financial entities which were too big to fail . To avoid a repeat of all the devastation that occurred, the US Congress passed the 2010 Dodd-Frank Wall Street Reform Act to prevent banks from taking on too much risk.
Some major factors that led to the 2008 financial meltdown were the banks’ reckless high risk lending practices. For example, Bank of America’s Countrywide Financial unit, caused Fannie Mae and Freddie Mac to lose market share and to respond by lowering their own standards. Then there were the mortgage guarantees. Many of the subprime (high risk) loans were bundled and sold, to the quasi-government agencies Fannie Mae and Freddie Mac. The implicit guarantee by the US federal government programs created a moral hazard and contributed to a glut of risky lending. The big banks making the high risk loans had no skin in the game. This was like a Ponzi scheme where it was only a matter of time when the accumulation and subsequent high default rates of these subprime mortgages led to the financial crisis and the consequent damage to the world economy.
Can you believe that the banking community is pushing the president’s administration to roll back these regulations that were enacted to prevent a repeat of this 2008 financial debacle? This is one reason why US Congress via its House oversight committees are conducting hearings. Having Rep. Katie Power who is well versed in financial institutional ‘ practices, doing the questioning, is a sight to behold.
Here’s the rest of the story…
On April 11, 2019, Caroline Kelly of CNN Politics penned the following report. “Freshman Democrat presses JPMorgan CEO Jamie Dimon over pay disparity”
“Freshman Rep. Katie Porter stumped multimillionaire JPMorgan Chase CEO Jamie Dimon during a hearing Wednesday with a simple question: How are workers supposed to make ends meet?”