'Financial CHOICE Act 2.0' Rolling Back Consumer Protections Moves Forward
- Author: Zachary Reyes May 11, 2017,
May 11, 2017, 10:09
The action moved House Republicans closer to realizing their long-promised goal to undo financial regulatory laws enacted under Obama after the 2008 economic meltdown pushed the economy to the brink of collapse.
The Financial CHOICE Act, a bill to roll back the finance industry regulations and monitoring implemented by the 2010 Dodd-Frank Act, passed in the House Financial Services Committee Thursday - with significant monetary support from Wall Street.
The bill was approved 34-26 along party lines and now goes to the full House.
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The Financial Services Committee's effort got off to a slow start Tuesday as Democrats insisted that much of the 600-page replacement bill be read aloud before the committee even considered amendments.
Republicans criticize the Dodd-Frank regulations as the primary driver for anemic economic growth in the USA - a point Democrats repeatedly refuted during the hearing, arguing there is weak evidence to back up the GOP's claim.
"The real middle finger to the American people is the lack of recovery because of Dodd-Frank", said Bill Huizenga of MI. The agency is hated by bankers and their lobbyists and has always been a target of Republicans.
"The Financial CHOICE Act is a deceptively named Wall Street giveaway that rewards the bankers and hedge fund managers who have showered Rep. Hensarling and other members of the House Financial Services Committee with tens of millions of dollars in campaign cash", Karl Frisch, executive director of Allied Progress, said in a statement. Democrats argued that problems in the law could be improved with minor adjustments.
Hensarling said that Dodd-Frank was making life hard for community banks, forcing them to focus their resources on regulatory compliance rather than providing capital to local businesses and consumers.
Republican support for Act looks strong, so it appears likely to make it through.
The Center for Responsible Lending stands in stark opposition to the previous comments and believes the act is an extreme bill that would shred essential consumer protections enacted in the wake of the financial crisis through Dodd-Frank. Unfortunately, he said, Hensarling and Republicans have taken an all-or-nothing approach. The bill would replace Dodd-Frank's Orderly Liquidation Authority with a bankruptcy process to keep the effects of a failing bank from financial markets.
Rep. Brad Sherman (D-Calif.), however, said that some aspects of the bill could find favor among Democrats.
Despite years of heated partisan battles over Dodd-Frank, Hensarling said the committee has a track record of working together and could continue to do so after the CHOICE Act clears.
A congressional panel that writes rules for Wall Street advanced plans to overhaul the Dodd-Frank Act, gaining ground in Republican efforts to reverse post-crisis restraints on banks.
Republicans said their local community banks and credit unions were telling them to vote for the bill.
House Financial Services Committee member Rep.