Hester Peirce, a fellow at the Koch-founded Mercatus Center, is in line to become a commissioner of the U.S. Securities and Exchange Commission (SEC). Peirce’s seat at the table would give the Koch brothers a huge leg up in their fight against the Dodd-Frank Act, as her stance on the regulation falls perfectly in line with the brothers’ opposition to the reform. Never before have the Kochs had a federal agency commissioner in their pocket who is willing to do their bidding to protect their bottom line at the expense of consumers.
From the Financial Advisor:
As evidence of her conservative thinking on regulation, in testimony before a Financial Services Committee panel, Peirce criticized the authors of the Dodd-Frank Act for putting too much power in the hands of the director of the Consumer Financial Protection Bureau.
“Any pronouncement from the agency’s director has the appearance of being the agency’s official position. By contrast, an offhand comment by the chairman of a commission-led agency looks less like a regulatory pronouncement, since official agency positions are established through commission votes,” she said.
Koch Industries would certainly profit from any weakening of Dodd-Frank, and a full repeal is at the top of their wish list. The Kochs have made some serious cash trading energy commodities on Wall Street over the years and Dodd-Frank’s regulations on their trades has been a driving force in the brothers’ campaign against it. If the SEC allows for Peirce to become a commissioner, it will also be allowing the Kochs to go unchecked while they continue to profit off of the losses of everyday consumers.