Washington, D.C. - October 4, 2017 (The Ponder News) -- U.S. Senator Tammy Duckworth (D-IL) and U.S. Representative Brad Schneider (IL-10) introduced the Sensible, Timely Relief for America’s Nuclear Districts’ Economic Development (STRANDED) Act to help communities struggling with the impacts of stranded nuclear waste. Their bicameral legislation would create grants to incentivize economic development and provide federal assistance to offset the economic impacts of stranded nuclear waste for the dozens of communities that are affected across the country – and the dozens more that will be stranded over the coming years. Specifically, the legislation would provide 15 dollars for each kilogram of nuclear waste, revive an expired tax credit for first-time homebuyers purchasing a home in a community with stranded waste and include stranded nuclear waste communities to the existing New Markets credit eligibility.
Duckworth and Schneider announced their new legislation this weekend in Zion, Illinois, where a decommissioned nuclear power station has housed more than 1,020 metric tons of spent nuclear fuel on valuable lakefront property since the plant’s closure in 1998. A photo taken at the announcement is available here.
“For years communities have been forced to house this waste without consent or compensation, despite the immeasurable negative impact to their local economies,” Duckworth said. “Since the federal government has failed to open a permanent repository and it could take years to move the waste after one is agreed upon, the STRANDED Act will help affected areas around the country that are facing hardship now. Communities like Zion can’t wait any longer.”
“Zion and communities like it have been unfairly saddled with storing our nation’s stranded nuclear waste – forced to shoulder the burdens of storage with no compensation in return,” Schneider said. “The federal government needs to make right by these communities. This bill I’m introducing with Sen. Duckworth would bolster Zion’s economic development by finally compensating the city for its storage of the waste, offering tax incentives to encourage private investment and homeownership, and better ensuring access to all available federal resources. Addressing this issue is a matter of basic fairness for the communities paying the price for our government’s failure to find a permanent solution for spent nuclear fuel.”
In addition to encouraging economic development and providing financial support, the STRANDED Act would establish a task force to identify the programs that currently exist for communities with stranded nuclear waste, simplifying the process and making it easier for communities applying for government assistance. The bill would also help identify a long-term solution for nuclear waste by directing the Department of Energy to examine other options for hosting decommissioned nuclear waste and to determine if secure sites that house decommissioned nuclear waste can be used for other purposes like hosting secure servers as well.
Duckworth’s post on the U.S. Senate Committee on Energy and Natural Resources gives her jurisdiction over nuclear energy, and she is committed to using that post to improve areas with stranded nuclear waste.
The Unpopular Truth
Wednesday, October 4, 2017
Cotton Statement on the Expulsion of Cuban Diplomats from U.S. Soil
Washington, D.C. - October 4, 2017 (The Ponder News) -- Senator Tom Cotton (R-Arkansas) has released the following statement on the expulsion of Cuban diplomats from U.S. soil:
"I encouraged the president to expel Cuban diplomats from U.S. soil, and I'm glad that he did. The Castro regime has shown no respect or concern for the safety of our diplomats, and until the regime brings those responsible for these attacks to justice, every one of those Cuban diplomats should be declared persona non grata. It's time we held the Castro regime responsible for its crimes against both the Cuban and the American people."
"I encouraged the president to expel Cuban diplomats from U.S. soil, and I'm glad that he did. The Castro regime has shown no respect or concern for the safety of our diplomats, and until the regime brings those responsible for these attacks to justice, every one of those Cuban diplomats should be declared persona non grata. It's time we held the Castro regime responsible for its crimes against both the Cuban and the American people."
Budget Committee Begins Work to Advance Tax Reform
Washington, D.C. - October 4, 2017 (The Ponder News) -- On the Senate floor, U.S. Senator John Cornyn (R-TX) discussed the Senate Budget Committee’s mark-up of the Budget Resolution for Fiscal Year 2018 which will lay the foundation for tax reform. Excerpts of Sen. Cornyn’s remarks are below, and video of his remarks can be found here.
“Beginning today, the Senate Budget Committee will take the next step in our effort to enact pro-growth tax reform, this time by marking up a budget resolution. The Committee's work follows the release last week of our unified framework, the tax blueprint on how to create jobs and how to put more money back in the pockets of the hardworking Americans that earn it.”
“The best way to accomplish meaningful tax reform is to lower rates and simplify provisions across the board to give Americans more take-home pay and have to spend less time hiring somebody just to complete their tax return. We can't simply throw up our hands and do nothing and accept the status quo because American workers and job creators can't afford the status quo. I'm optimistic… about the framework and look forward to working with my colleagues in the Finance Committee in the days and weeks ahead.”
“Beginning today, the Senate Budget Committee will take the next step in our effort to enact pro-growth tax reform, this time by marking up a budget resolution. The Committee's work follows the release last week of our unified framework, the tax blueprint on how to create jobs and how to put more money back in the pockets of the hardworking Americans that earn it.”
“The best way to accomplish meaningful tax reform is to lower rates and simplify provisions across the board to give Americans more take-home pay and have to spend less time hiring somebody just to complete their tax return. We can't simply throw up our hands and do nothing and accept the status quo because American workers and job creators can't afford the status quo. I'm optimistic… about the framework and look forward to working with my colleagues in the Finance Committee in the days and weeks ahead.”
Cornyn: Democrats Attacking Tax Reform Ideas They Once Supported
Washington, D.C. - October 4, 2017 (The Ponder News) -- On the Senate floor, U.S. Senator John Cornyn (R-TX) noted Democrats’ hypocrisy when discussing tax reform efforts, highlighting their previous support for elements in the Big Six framework which they are now criticizing. Excerpts of Sen. Cornyn’s remarks are below, and video of his remarks can be found here.
“You'd think, given their effusive support for tax reform in the past, our Democratic friends would at least wait to review the legislation before they pounce on it.”
“They are already piling on, and spreading misinformation, and assuming the worst because that's the easy and politically expedient thing to do.”
“What's most striking is that the new framework, unveiled by the so-called ‘Big Six,’ shares many of the core features of previous plans that were widely embraced by Democrats.”
“These changes to our tax code used to be noncontroversial, certainly not partisan. So the Big Six plan isn't just similar to the Wyden one, though. It also shares key features with the so-called ‘Simpson-Bowles’ plan from 2010 that not long ago was embraced by a number of Democrats.”
“Our Democratic colleagues used to think these reforms were long overdue, and they were right then, and they are wrong now.”
“Our colleagues from Ohio, Minnesota, and Missouri have all said in recent years that we should lower the corporate tax rate, not because we love corporations, but because we recognize that that provides incentives for them to stay here and invest in jobs and businesses in America, rather than overseas.”
“There is nothing partisan about wanting an updated and more competitive tax code.”
“You'd think, given their effusive support for tax reform in the past, our Democratic friends would at least wait to review the legislation before they pounce on it.”
“They are already piling on, and spreading misinformation, and assuming the worst because that's the easy and politically expedient thing to do.”
“What's most striking is that the new framework, unveiled by the so-called ‘Big Six,’ shares many of the core features of previous plans that were widely embraced by Democrats.”
“These changes to our tax code used to be noncontroversial, certainly not partisan. So the Big Six plan isn't just similar to the Wyden one, though. It also shares key features with the so-called ‘Simpson-Bowles’ plan from 2010 that not long ago was embraced by a number of Democrats.”
“Our Democratic colleagues used to think these reforms were long overdue, and they were right then, and they are wrong now.”
“Our colleagues from Ohio, Minnesota, and Missouri have all said in recent years that we should lower the corporate tax rate, not because we love corporations, but because we recognize that that provides incentives for them to stay here and invest in jobs and businesses in America, rather than overseas.”
“There is nothing partisan about wanting an updated and more competitive tax code.”
Bill to Protect Children from Online Predators Passes House
Washington, D.C. - October 4, 2017 (The Ponder News) -- The PROTECT Our Children Act, bipartisan legislation introduced by U.S. Senator John Cornyn (R-TX), passed the U.S. House of Representatives. This legislation, which passed the Senate in June, reauthorizes the Internet Crimes Against Children (ICAC) Task Force Program, a national network of 61 coordinated task forces representing 3,500 federal, state, and local law enforcement and prosecutorial agencies that combat child exploitation across the country. U.S. Senators Richard Blumenthal (D-CT), Dean Heller (R-NV), and Amy Klobuchar (D-MN) were original cosponsors of the legislation.
“As Attorney General of Texas, I saw firsthand how children can be exploited over the internet and what resources are needed to stop these despicable predators. Preventing cyber-crimes like online child exploitation is an increasingly tough task, which is why the ICAC Task Force Program and the support it gives to our law enforcement agencies to combat this heinous crime is invaluable,” Sen. Cornyn said. “I’m proud to see my colleagues in both Chambers recognize the importance of reauthorizing this program, and I will work to see that the Senate clears this legislation for the President’s signature.”
The PROTECT Our Children Act, originally passed in 2008, authorized the ICAC Task Force Program, a coordinated group of task forces representing 3,500 federal, state, and local law enforcement and prosecutorial agencies engaged in reactive and proactive investigations across the country. This legislation built upon work Senator Cornyn began as Texas Attorney General, when he created the Texas Internet Bureau to fight internet crimes like child pornography.
The ICAC Task Force Program helps local and state law enforcement respond to technology-facilitated child sexual exploitation and internet crimes against children, and offers guidance on victim support, forensic investigative components, training and technical assistance, and prevention and community education.
Earlier this year, Senator Cornyn met with local leaders and law enforcement officers working with two of the three ICACs in Texas, the Dallas ICAC Task Force and the Houston Metro ICAC Task Force, to discuss their successes and challenges to preventing online exploitation of children in the state.
Organizations who support the PROTECT Our Children Act include the National Association to Protect Children (PROTECT), the National Center for Missing and Exploited Children, RAINN (Rape, Abuse & Incest National Network), the National Children’s Alliance, Rights4Girls, Shared Hope, the Fraternal Order of Police, the National Association of Police Organizations, the Sergeants Benevolent Association, the Major County Sheriffs of America, the Association of State Criminal Investigative Agencies, the National Sheriffs Association, the Federal Law Enforcement Officers Association, the National District Attorneys Association, the National Criminal Justice Association, and the Major City Chiefs Police Association.
“As Attorney General of Texas, I saw firsthand how children can be exploited over the internet and what resources are needed to stop these despicable predators. Preventing cyber-crimes like online child exploitation is an increasingly tough task, which is why the ICAC Task Force Program and the support it gives to our law enforcement agencies to combat this heinous crime is invaluable,” Sen. Cornyn said. “I’m proud to see my colleagues in both Chambers recognize the importance of reauthorizing this program, and I will work to see that the Senate clears this legislation for the President’s signature.”
The PROTECT Our Children Act, originally passed in 2008, authorized the ICAC Task Force Program, a coordinated group of task forces representing 3,500 federal, state, and local law enforcement and prosecutorial agencies engaged in reactive and proactive investigations across the country. This legislation built upon work Senator Cornyn began as Texas Attorney General, when he created the Texas Internet Bureau to fight internet crimes like child pornography.
The ICAC Task Force Program helps local and state law enforcement respond to technology-facilitated child sexual exploitation and internet crimes against children, and offers guidance on victim support, forensic investigative components, training and technical assistance, and prevention and community education.
Earlier this year, Senator Cornyn met with local leaders and law enforcement officers working with two of the three ICACs in Texas, the Dallas ICAC Task Force and the Houston Metro ICAC Task Force, to discuss their successes and challenges to preventing online exploitation of children in the state.
Organizations who support the PROTECT Our Children Act include the National Association to Protect Children (PROTECT), the National Center for Missing and Exploited Children, RAINN (Rape, Abuse & Incest National Network), the National Children’s Alliance, Rights4Girls, Shared Hope, the Fraternal Order of Police, the National Association of Police Organizations, the Sergeants Benevolent Association, the Major County Sheriffs of America, the Association of State Criminal Investigative Agencies, the National Sheriffs Association, the Federal Law Enforcement Officers Association, the National District Attorneys Association, the National Criminal Justice Association, and the Major City Chiefs Police Association.
Court-Appointed Guardian Accountability and Senior Protection Act Passes Senate, Heads to President's Desk
Washington, D.C. - October 4, 2017 (The Ponder News) -- U.S. Senator John Cornyn (R-TX) released the following statement after his bipartisan legislation to protect seniors from neglect and financial exploitation passed Congress. The Court-Appointed Guardian Accountability and Senior Protection Act, which he introduced with Sen. Amy Klobuchar (D-MN), will help crack down on elder abuse by strengthening oversight and accountability for guardians and conservators.
“Our nation’s senior citizens regretfully are targets for exploitation and fraud, sadly sometimes at the hands of those they trust the most,” said Cornyn. “I’m glad the House passed this bipartisan legislation to strengthen accountability measures for guardians so our senior citizens are protected and this type of abuse can be prevented.”
Sen. Cornyn’s bipartisan legislation passed as part of the Elder Abuse Prevention and Prosecution Act. The Court-Appointed Guardian Accountability and Senior Protection Act makes courts eligible for an already existing program designed to protect seniors. Under the program, state courts would be able to apply for funding to assess the handling of proceedings relating to guardians and conservators, and then make the necessary improvements to their practices. For example, the courts could conduct background checks on potential guardians and conservators, or implement an electronic filing system to better monitor and audit conservatorships and guardianships.
“Our nation’s senior citizens regretfully are targets for exploitation and fraud, sadly sometimes at the hands of those they trust the most,” said Cornyn. “I’m glad the House passed this bipartisan legislation to strengthen accountability measures for guardians so our senior citizens are protected and this type of abuse can be prevented.”
Sen. Cornyn’s bipartisan legislation passed as part of the Elder Abuse Prevention and Prosecution Act. The Court-Appointed Guardian Accountability and Senior Protection Act makes courts eligible for an already existing program designed to protect seniors. Under the program, state courts would be able to apply for funding to assess the handling of proceedings relating to guardians and conservators, and then make the necessary improvements to their practices. For example, the courts could conduct background checks on potential guardians and conservators, or implement an electronic filing system to better monitor and audit conservatorships and guardianships.
CAPITO, MANCHIN, MCKINLEY, WELCH INTRODUCE AMERICAN MINERS PENSION ACT
Washington, D.C. - October 4, 2017 (The Ponder News) -- U.S. Senators Shelley Moore Capito (R-W.Va.) and Joe Manchin (D-W.Va.) and U.S. Representatives David McKinley (R-W.Va.) and Peter Welch (D-Vt.) have introduced the American Miners Pension Act (AMP Act) at a press conference with United Mine Workers of America (UMWA) President Cecil Roberts and retired miners explaining the importance of this legislation and urging quick adoption.
“Earlier this year, we secured a major victory of permanent health care for our miners and their families. But that victory was only half the battle. Today, we took the next step by introducing the AMP Act, which will ensure these hardworking men and women receive the pensions they rightfully earned. I am always proud to stand with our miners through thick and thin—especially our West Virginia miners—and I will continue to stand with them today as we work to deliver the peace of mind they deserve,” Senator Capito said.
“We have come together today to deliver on an unfinished promise. Earlier this year, we passed legislation to ensure the health benefits of 22,600 miners,” Senator Manchin said. “These benefits are lifesaving to our nation’s miners and their families and I was proud to fight successfully, shoulder to shoulder with them, to secure their health care. But our job isn’t finished. The bill we will introduce today, the American Miners Pension Act, protects the pensions of nearly 87,000 current beneficiaries and another 20,000 eligible coal miners with vested pensions. These miners earned their pensions through a lifetime of the hardest work imaginable. They did so resting in the knowledge that they would find it waiting for them down the road for support in their retired years. Let’s finish what we started and pass this fix to ensure our coal miners keep their hard-earned pensions.”
“Congress needs to keep the promise made to our miners and protect the pension benefits these men and women earned with their sweat. More than 117,000 miners and their families are counting on us. Now that we’ve addressed the immediate threat to retirees’ health care, we need to finish what we started and fix their troubled pension. Our retirees deserve peace of mind that the benefits they earned during their years in the mines will be there when they need them,” Congressman McKinley said.
“For generations, coal miners have risked their lives to keep homes warm, lights on, and factories powered,” Congressman Welch said. “We have a moral obligation to ensure that their hard earned pensions are there when they retire.”
Currently, the 1974 UMWA Pension Plan is on the road to insolvency. The American Miners Pension Act will shore up the 1974 UMWA Pension Plan to make sure that nearly 87,000 retired miners receiving pensions, as well as another 20,000 who are vested, won’t lose the pensions they have paid into for decades. In West Virginia alone, there are 26,967 pensioners who are at risk. The AMP Act would:
Use the provision from the Miners Protection Act to allow transfers of excess funds in the Abandoned Mine Land program to the 1974 UMWA pension plan.
Direct the Treasury Department to loan the Pension Plan funds annually.
Cap the annual loan amount at $600 million and set the interest rate at 1 percent.
Require the fund to pay interest for the first 10 years and then pay back the principal plus interest over a 30-year term.
Require the fund to certify each year that the pension plan is solvent and able to pay back the principal and interest.
“Earlier this year, we secured a major victory of permanent health care for our miners and their families. But that victory was only half the battle. Today, we took the next step by introducing the AMP Act, which will ensure these hardworking men and women receive the pensions they rightfully earned. I am always proud to stand with our miners through thick and thin—especially our West Virginia miners—and I will continue to stand with them today as we work to deliver the peace of mind they deserve,” Senator Capito said.
“We have come together today to deliver on an unfinished promise. Earlier this year, we passed legislation to ensure the health benefits of 22,600 miners,” Senator Manchin said. “These benefits are lifesaving to our nation’s miners and their families and I was proud to fight successfully, shoulder to shoulder with them, to secure their health care. But our job isn’t finished. The bill we will introduce today, the American Miners Pension Act, protects the pensions of nearly 87,000 current beneficiaries and another 20,000 eligible coal miners with vested pensions. These miners earned their pensions through a lifetime of the hardest work imaginable. They did so resting in the knowledge that they would find it waiting for them down the road for support in their retired years. Let’s finish what we started and pass this fix to ensure our coal miners keep their hard-earned pensions.”
“Congress needs to keep the promise made to our miners and protect the pension benefits these men and women earned with their sweat. More than 117,000 miners and their families are counting on us. Now that we’ve addressed the immediate threat to retirees’ health care, we need to finish what we started and fix their troubled pension. Our retirees deserve peace of mind that the benefits they earned during their years in the mines will be there when they need them,” Congressman McKinley said.
“For generations, coal miners have risked their lives to keep homes warm, lights on, and factories powered,” Congressman Welch said. “We have a moral obligation to ensure that their hard earned pensions are there when they retire.”
Currently, the 1974 UMWA Pension Plan is on the road to insolvency. The American Miners Pension Act will shore up the 1974 UMWA Pension Plan to make sure that nearly 87,000 retired miners receiving pensions, as well as another 20,000 who are vested, won’t lose the pensions they have paid into for decades. In West Virginia alone, there are 26,967 pensioners who are at risk. The AMP Act would:
CAPITO, JENKINS RELEASE FEDERAL STUDY ON NEONATAL ABSTINENCE SYNDROME
Washington, D.C. - October 4, 2017 (The Ponder News) -- U.S. Senator Shelley Moore Capito (R-W.Va.) and U.S. Representative Evan Jenkins (R-W.Va.) have announced the release of a Government Accountability Office (GAO) study on neonatal abstinence syndrome. The study, “Federal Action Needed to Address Neonatal Abstinence Syndrome,” is the first federal study of its kind to examine best practices and approaches to treating newborns exposed to opioids during pregnancy.
The report recommends several practices to address neonatal abstinence syndrome (NAS) and improve treatment for these newborns, including educating expectant mothers on prenatal care and available resources. It also suggests educating healthcare providers on screening and treating NAS, as well as addressing the stigma faced by pregnant women who use opioids that keeps them from getting treatment.
Representative Jenkins introduced legislation, the NAS Healthy Babies Act, to require this study, which the House passed last year. Thanks to the work of Senator Capito and Representative Jenkins, the legislation was included in the final version of the Comprehensive Addiction and Recovery Act, which was signed into law by the president.
“We hear heartbreaking stories every day about the tragic deaths and painful struggles of individuals dealing with addiction, but some of the most heartbreaking are those of infants who are exposed to opioids before they’re even born. It’s important that we do more to draw attention to this issue and take action to address it. That’s why I pushed to make sure CARA included a provision requiring this study and have continued working to advance legislation that will help these infants,” Senator Capito said. “West Virginia is so fortunate to be home to Lily’s Place, a wonderful facility that provides the kind of specialized care infants going through withdrawal need. However, many families across the country don’t have access to that kind of care or don’t even know it’s a possibility. By raising awareness of treatment options like those available at Lily’s Place and exploring strategies to help infants in need, we can really begin to address this tragic aspect of the opioid crisis. This study is another step in a much larger fight, but it’s a welcome and useful tool that I know will inform our efforts moving forward.”
“Suffering through withdrawal from exposure to drugs such as heroin and other opioids is a horrific way to start one’s life, but tragically that’s the reality for many newborns in West Virginia and across the country. I was proud to sponsor and champion the law that required this study so we could expand our knowledge of NAS and how to care for these precious newborns. Every child deserve the best chance for a healthy start in life,” Representative Jenkins said. “This report showed that there are other options for care outside of a hospital that may be more suitable for some babies, like the care being given at Lily’s Place in Huntington. It also found that we can and must do more to implement best practices and work with caregivers in our communities. Based on this report’s findings, I am ready to draft new legislation to find and promote solutions to help these babies and stop the opioid epidemic.”
Senator Capito and Representative Jenkins have worked together on other legislation to address the opioid crisis and help NAS newborns. In May, Senator Capito reintroduced the Caring Recovery for Infants and Babies (CRIB) Act, which Representative Jenkins introduced in the House. The bipartisan legislation would help newborns suffering from addiction recover in the best setting and provide support to their families. The bill would recognize residential pediatric recovery facilities as providers under Medicaid, allowing Medicaid to cover these services in residential pediatric recovery facilities in addition to hospitals.
For a copy of the full GAO report, click here.
The report recommends several practices to address neonatal abstinence syndrome (NAS) and improve treatment for these newborns, including educating expectant mothers on prenatal care and available resources. It also suggests educating healthcare providers on screening and treating NAS, as well as addressing the stigma faced by pregnant women who use opioids that keeps them from getting treatment.
Representative Jenkins introduced legislation, the NAS Healthy Babies Act, to require this study, which the House passed last year. Thanks to the work of Senator Capito and Representative Jenkins, the legislation was included in the final version of the Comprehensive Addiction and Recovery Act, which was signed into law by the president.
“We hear heartbreaking stories every day about the tragic deaths and painful struggles of individuals dealing with addiction, but some of the most heartbreaking are those of infants who are exposed to opioids before they’re even born. It’s important that we do more to draw attention to this issue and take action to address it. That’s why I pushed to make sure CARA included a provision requiring this study and have continued working to advance legislation that will help these infants,” Senator Capito said. “West Virginia is so fortunate to be home to Lily’s Place, a wonderful facility that provides the kind of specialized care infants going through withdrawal need. However, many families across the country don’t have access to that kind of care or don’t even know it’s a possibility. By raising awareness of treatment options like those available at Lily’s Place and exploring strategies to help infants in need, we can really begin to address this tragic aspect of the opioid crisis. This study is another step in a much larger fight, but it’s a welcome and useful tool that I know will inform our efforts moving forward.”
“Suffering through withdrawal from exposure to drugs such as heroin and other opioids is a horrific way to start one’s life, but tragically that’s the reality for many newborns in West Virginia and across the country. I was proud to sponsor and champion the law that required this study so we could expand our knowledge of NAS and how to care for these precious newborns. Every child deserve the best chance for a healthy start in life,” Representative Jenkins said. “This report showed that there are other options for care outside of a hospital that may be more suitable for some babies, like the care being given at Lily’s Place in Huntington. It also found that we can and must do more to implement best practices and work with caregivers in our communities. Based on this report’s findings, I am ready to draft new legislation to find and promote solutions to help these babies and stop the opioid epidemic.”
Senator Capito and Representative Jenkins have worked together on other legislation to address the opioid crisis and help NAS newborns. In May, Senator Capito reintroduced the Caring Recovery for Infants and Babies (CRIB) Act, which Representative Jenkins introduced in the House. The bipartisan legislation would help newborns suffering from addiction recover in the best setting and provide support to their families. The bill would recognize residential pediatric recovery facilities as providers under Medicaid, allowing Medicaid to cover these services in residential pediatric recovery facilities in addition to hospitals.
For a copy of the full GAO report, click here.
Brown Says Wells Fargo Has Not Done Enough to Earn Back Customer Trust
U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – demanded answers from Wells Fargo CEO Timothy Sloan today about the company’s failure to detect millions of fraudulent accounts opened in customers’ names, as well as the company’s practice of forcing unwanted insurance on auto loan borrowers.
Brown cited multiple examples that demonstrate Wells Fargo has failed to institute significant changes in order to earn back customer trust. Wells Fargo only recently disclosed that the number of fraudulent accounts was 70 percent higher than it originally reported. And, while Wells Fargo told Congress the problems were limited to its community bank, the auto loan division stuck 800,000 customers with auto insurance policies without the customers’ consent.
Brown pressed Sloan on Wells Fargo’s use of so-called forced arbitration clauses to block customers from seeking justice in the court system. While Wells Fargo has insisted it is no longer using forced arbitration clauses to cover fake accounts, Brown pointed to a case in Utah within the last three weeks.
Brown pointed out that forced arbitration favors banks, putting customers at a disadvantage when seeking justice. In fact, despite the fact that Wells Fargo opened 3.5 million fraudulent accounts between 2009 and 2017, the bank was awarded more money through arbitration than it was required to pay to customers during that time, according to publicly available data. The average customer involved in an arbitration case with Wells Fargo ended up being ordered to pay the bank $11,000.
Brown also said that because the arbitration proceedings are private, they allow fraud that may have otherwise been brought to light through the court system to continue in secret.
“Forced arbitration always gives the advantage to the bank, and you are continuing to use forced arbitration to take advantage of your customers. Why should we believe you are committed to changing your practices and being fair to customers when you continue to use closed-door arbitration practices that deny customers their day in court?” Brown questioned Sloan.
As the CEO side-stepped Brown’s question, the Senator interrupted, “Give customers their day in court.”
Click here for production-quality video of Brown’s questions.
Brown is leading legislation in the Senate that would give defrauded Wells Fargo customers their day in court. Brown has also championed a rule from the Consumer Financial Protection Bureau that would bar banks, payday lenders and other financial institutions from using forced arbitration to block customers from accessing the court system. In July, the House of Representatives voted to overturn the Consumer Financial Protection Bureau’s rule. Brown vowed a ‘hell of a fight’ against Congressional efforts to roll back the rule.
Brown cited multiple examples that demonstrate Wells Fargo has failed to institute significant changes in order to earn back customer trust. Wells Fargo only recently disclosed that the number of fraudulent accounts was 70 percent higher than it originally reported. And, while Wells Fargo told Congress the problems were limited to its community bank, the auto loan division stuck 800,000 customers with auto insurance policies without the customers’ consent.
Brown pressed Sloan on Wells Fargo’s use of so-called forced arbitration clauses to block customers from seeking justice in the court system. While Wells Fargo has insisted it is no longer using forced arbitration clauses to cover fake accounts, Brown pointed to a case in Utah within the last three weeks.
Brown pointed out that forced arbitration favors banks, putting customers at a disadvantage when seeking justice. In fact, despite the fact that Wells Fargo opened 3.5 million fraudulent accounts between 2009 and 2017, the bank was awarded more money through arbitration than it was required to pay to customers during that time, according to publicly available data. The average customer involved in an arbitration case with Wells Fargo ended up being ordered to pay the bank $11,000.
Brown also said that because the arbitration proceedings are private, they allow fraud that may have otherwise been brought to light through the court system to continue in secret.
“Forced arbitration always gives the advantage to the bank, and you are continuing to use forced arbitration to take advantage of your customers. Why should we believe you are committed to changing your practices and being fair to customers when you continue to use closed-door arbitration practices that deny customers their day in court?” Brown questioned Sloan.
As the CEO side-stepped Brown’s question, the Senator interrupted, “Give customers their day in court.”
Click here for production-quality video of Brown’s questions.
Brown is leading legislation in the Senate that would give defrauded Wells Fargo customers their day in court. Brown has also championed a rule from the Consumer Financial Protection Bureau that would bar banks, payday lenders and other financial institutions from using forced arbitration to block customers from accessing the court system. In July, the House of Representatives voted to overturn the Consumer Financial Protection Bureau’s rule. Brown vowed a ‘hell of a fight’ against Congressional efforts to roll back the rule.
Brown: Equifax Should Spend More on Security, Less on CEO Pay
Washington, D.C. - October 4, 2017 (The Ponder News) -- U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – questioned former Equifax CEO Richard F. Smith today in the wake of a massive data breach that exposed the data of 145 million Americans. According to Equifax, more than 5.2 million Ohioans were impacted by the breach.
Brown called for Equifax to invest more in security and less in huge salaries for CEOs. He pointed out that Equifax spent nearly as much on Smith’s multi-million dollar salary as the company spent on cybersecurity. Since last year, Smith earned about $69 million, while Equifax spends just $85 million a year on cybersecurity.
“In hindsight, do you think Equifax should have spent more money protecting peoples’ data rather than compensating you so well?” Brown asked. “You’re an IT company. That’s just not acceptable.”
Brown also pointed out how unfair Equifax’s business model is for American consumers. Equifax makes money collecting and selling consumers’ data to other big companies. Those consumers are not compensated for the use of their data, in fact, most of the time, they don’t even know it’s being sold. Then Equifax makes even more money by forcing those same consumers to pay Equifax to protect their data after a breach occurs.
“Do you think it’s fair that Equifax gets to take consumers’ data at almost no cost, make millions by selling it to data mining companies and marketers, then charge fees to those consumers for credit monitoring products after they’ve become identity theft victims?” Brown pressed the CEO.
Brown called for consumers to have more control of their own data, similar to how Americans have ownership of their medical records. It is illegal for companies to buy and sell medical records, and patients must consent before their information is transferred. However, companies like Equifax are free to buy and sell sensitive data without people’s consent or knowledge. Brown suggested Americans should have the right to request their data be deleted from Equifax’s system or at the other consumer reporting agencies.
“If you don’t think consumers should be allowed to control their own data, why should a company that has had so many security failures be allowed to control their data? That’s the fundamental question this company hasn’t answered to the public,” Brown said.
Brown called for Equifax to invest more in security and less in huge salaries for CEOs. He pointed out that Equifax spent nearly as much on Smith’s multi-million dollar salary as the company spent on cybersecurity. Since last year, Smith earned about $69 million, while Equifax spends just $85 million a year on cybersecurity.
“In hindsight, do you think Equifax should have spent more money protecting peoples’ data rather than compensating you so well?” Brown asked. “You’re an IT company. That’s just not acceptable.”
Brown also pointed out how unfair Equifax’s business model is for American consumers. Equifax makes money collecting and selling consumers’ data to other big companies. Those consumers are not compensated for the use of their data, in fact, most of the time, they don’t even know it’s being sold. Then Equifax makes even more money by forcing those same consumers to pay Equifax to protect their data after a breach occurs.
“Do you think it’s fair that Equifax gets to take consumers’ data at almost no cost, make millions by selling it to data mining companies and marketers, then charge fees to those consumers for credit monitoring products after they’ve become identity theft victims?” Brown pressed the CEO.
Brown called for consumers to have more control of their own data, similar to how Americans have ownership of their medical records. It is illegal for companies to buy and sell medical records, and patients must consent before their information is transferred. However, companies like Equifax are free to buy and sell sensitive data without people’s consent or knowledge. Brown suggested Americans should have the right to request their data be deleted from Equifax’s system or at the other consumer reporting agencies.
“If you don’t think consumers should be allowed to control their own data, why should a company that has had so many security failures be allowed to control their data? That’s the fundamental question this company hasn’t answered to the public,” Brown said.
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