GOP-run House poised to roll back post-2008 financial rules
- Author: Zachary Reyes Jun 09, 2017,
Jun 09, 2017, 9:43
In the first quarter of 1984, there were 14,400 commercial banks in the U.S.
In the midst of a presidential election, Washington struggled in its response. It turned into an worldwide crisis with the collapse of the investment bank Lehman Brothers in September 2008. Barack Obama of IL and Republican Sen.
After the economy stabilized, Congress shifted from economic stimulus and bailouts to establishing the kind of regulatory framework that might keep another Great Recession from happening. Though the bill is expected to face significant opposition in the Senate, its passage is the surest sign yet that Republicans are serious about rolling back Obama era regulations that force banks to spend more time (and money) dealing with government imperatives.
Thornberry also noted that this bill will create a more transparent regulatory financial system that will allow our community lenders to refocus on providing opportunities for folks in rural communities instead of meeting unnecessary Washington mandates.
"I think people are too dismissive of this bill being DOA [Dead On Arrival] in the Senate", said Marcus Stanley, policy director for Americans for Financial Reform. Reconciliation, a runaround the normal route for legislation, is the budget process whereby a simple-majority can decide if a provision is burdensome to federal spending. Enacted in the wake of the 2008 financial crisis, and created to prevent another meltdown, Dodd-Frank has been a Republican target since it was signed into law seven years ago.
Republican leaders have said the deregulation bill would solve numerous worries about the financial system stemming from the crisis while allowing banks to more freely lend to invigorate the economy. But in the push to overhaul Dodd-Frank, Republicans said the biggest banks have only gotten bigger while local banks and credit unions are dwindling.
That's just a small snapshot of the changes put into place through the almost 2,300-page bill.
And that's the difference between Republican and Democratic conceptions of legislative power. You'll recall that Dodd-Frank was a piece of legislation put in place after the financial crisis with the apparently controversial goal of. well. preventing another financial crisis.
A Republican push to overhaul U.S. financial rules put in place after the 2008 crisis is gaining momentum.
"We will make sure there is needed regulatory relief for our small banks and credit unions, because it's our small banks and credit unions that lend to our small businesses that are the jobs engine of our economy and make sure the American dream is not a pipe dream", said Chairman Hensarling. Dodd announced in January 2010 that he would not seek re-election once his term ended, and he led the debate on the Senate side without fear of how it would harm his political standing. His home state of CT counts several of the insurance companies that were shaken in the crisis. Trump calls the law a "disaster".
Rep. Brad Sherman, D-Calif., has identified a dozen of them that pertain to mortgage and business credit, among other things, and has called for Financial Services Committee Chairman Jeb Hensarling to separate those provisions which could pass in a bipartisan fashion.
And to make sure that once again, we have the rule of law, that businesses, as one banker told me, to no longer have to hunker down in the foxholes fearful that some regulator will wake up on the wrong side of the bed and functionally shut them down for a standard that they never knew of.
Critics also say it would eliminate the independence of the Consumer Financial Protection Bureau created by Dodd-Frank, and greatly reduce its ability to regulate. The new regulations are simply too convoluted and complex.