October 13, 2020
“Broadly, the Biden campaign’s proposals for the financial sector are being written with an eye to meeting the expectations of the Democratic progressive base without spooking moderates who worry about expanding regulatory powers,” writes the Wall Street Journal on October 13, 2020.
“Mr. Biden has taken fire from progressives, including during the Democratic primary, for the landmark 2005 bankruptcy legislation, which made it more difficult for consumers to shed their debts. Among the changes, the law broadened the kinds of student loans that can’t be discharged to include nongovernmental and for-profit lending.
Mr. Biden had long sided with lenders on the issue. In 2000, as chairman of the Foreign Relations Committee, he inserted the bankruptcy provision into a foreign-relations bill. The next year, he was the lone Democrat on the Senate Judiciary Committee to vote to advance the bill.
Banks made the case that consumer abuse of the bankruptcy system was raising borrowing costs for everyone and that credit-card companies shouldn’t shoulder the burden of what they called poor decision-making by borrowers.”
“Without his support and the support of other Democrats who understood where we were coming from, who were sensitive to the abuse part, I don’t think it would ever have passed,” said John McKechnie, then the senior lobbyist for the Credit Union National Association.
John McKechnie is Senior Partner for Total Spectrum.
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