Biden Issues Another Veto, Protects ‘Woke’ Rule

Biden Issues Another Veto, Protects 'Woke' Rule

(NationRise.com) – Biden issued a win for woke activists on December 19 after vetoing a resolution to end a lending rule.

Several lawmakers attempted to overturn a rule that requires banks and financial institutions to collect personal details about applicants for small business loans. Those demographics include sexual identity and other personal information. The Consumer Financial Protection Bureau (CFPB) rule also establishes an extensive database of applications for business credit that can be accessed by the public.

Republicans slammed the rule, saying that it was “woke” and posed potential privacy concerns. Biden defended the bill by claiming that it would improve transparency and help small businesses access capital more efficiently. He also accused Republicans of trying to prevent the government from stopping scammers and bad players.

John Kennedy (R-LA) countered Biden’s argument, saying instead that the rule is “intrusive” and may actually make small businesses more hesitant to apply for funding. He noted that small business owners will, for example, be grilled about their sexual orientation. Lenders will have no choice but to ask. He stressed that the details are “none of (the government’s) business” and are unrelated to credit applications.

The National Federation of Independent Business (NFIB) added to the concerns of Republicans by noting that the rule will likely give big banks an unfair advantage over credit unions. The October 18th letter indicated that big banks have more resources to deal with the extra paperwork.

Smaller credit unions will likely have to charge more to compensate for the increased manpower, thus making them less competitive. According to the NFIB, 84% of their members currently use small or medium-sized local institutions for their credit needs.

Those concerns come as consumers, small business borrowers, and financial institutions of all sizes have been rocked by high interest rates set by the Federal Reserve.

The House narrowly passed the disapproval measure in early December after it also passed the Senate. Biden’s veto could be overturned by a two-thirds majority in both, but that is unlikely since the margins were already slim.

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