Dodd-Frank Repeal Bill Advances in the House
- Author: Zachary Reyes May 08, 2017,
May 08, 2017, 16:56
While passage by the GOP-controlled House could come in a few months, the Senate - where Republicans have only 52 of 100 seats - poses an obstacle. They also dislike the prospect of having to raise billions of dollars in new capital to reach the bill's threshold for banks to qualify for relief from some rules.
"When Dodd-Frank was passed almost seven years ago, Americans were promised it would lift the economy", said Hensarling. "Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices".
The Financial Services Roundtable, which represents integrated financial services companies, supported the news and noted that it's an important first step to improving the regulatory system and promoting economic growth. Trump says the restrictions on banks have crimped lending, the economy and job creation.
"Other, much-needed provisions in the bill bring Sunshine Act transparency to the FSOC's processes and diversify the participants in the Council's deliberations, by including members of the represented agencies and not just the agencies' heads".
This legislation is a straight-out bow to big banks and lenders. "They ignore the fact of the 2008 financial collapse at our collective peril".
The bill crafted by Jeb Hensarling, chairman of the panel, cleared the committee despite vehement objections by Democrats to preserve the sweeping law aimed at preventing another financial crisis and protecting American consumers.
Specifically, ICI supports the provision that would remove the power of the Financial Stability Oversight Council (FSOC) to designate non-bank SIFIs and of the Federal Reserve to regulate them.
Renaming the Consumer Financial Protection Bureau as the Consumer Law Enforcement Agency, with a deputy director appointed by the president and removable at will.
Several asked Hensarling to abandon the CHOICE Act in favor over a bill focusing on community and mid-size banks.
The advocacy group Consumers Union criticized the legislation, saying the consumer agency has worked to win nearly $12 billion in refunds and relief for an estimated 29 million Americans.
The targeting of the CFPB especially rankles Democrats and consumer advocates.
"Under Dodd-Frank", he said, "consumers are paying more and getting less".
Even the retail industry, which had urged Congress to not roll back financial reforms involving debit card transactions, called out the Committee for moving forward with the legislation. Prior to the cap, fees averaged 44 cents per swipe.
However, the Senate Banking Committee will be considering its own proposals to rework financial rules.
The panel debated an amendment that would bar the GOP's replacement law from going into effect until the Office of Government Ethics certifies that the changes in the bill would not directly benefit Trump or any of his appointees with influence over federal regulations.