House passes Dodd-Frank rollback

No Democratic lawmakers supported the measure; only one Republican opposed it.

The bill also gives the president the ability to fire the head of the Consumer Financial Protection Bureau, and gives Congress control of the agency's budget, meaning it could be defunded entirely.

Dubbed the Financial CHOICE Act and sponsored by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, pundits say the legislation is nonetheless unlikely to move forward in the Senate, despite Thursday's high-profile vote. They have expressed concern that an inadequately regulated financial sector could lead to risky decisions similar to what contributed to the financial crisis.

House Speaker Paul Ryan disagreed and said it "is a jobs bill - one that will bring hope back to Main Street" and help thousands of small businesses that are hoping to hire and expand.

Pennsylvania's Josh Shapiro has joined with fellow attorneys general from 19 other states to send a letter to Congress urging them not to pass the Financial Choice Act of 2017.

Reform the Consumer Financial Protection Bureau (CFPB) by removing its examination and supervisory powers and creating the "Consumer Law Enforcement Agency" that will have the dual mission to protect the consumers while creating competitive markets. In the first quarter of 1984, there were 14,400 commercial banks in the U.S. As of May 1, there were 5,031. The FDIC and the Fed are the two regulators responsible for overseeing this requirement under the 2010 law.

The Federal Reserve has described the US banking system as much more robust and resilient than it was before the financial crisis.

The act was created to protect taxpayers by ending wholesale government bailouts of banks and non-bank financial institutions that encouraged indiscriminate lending.

He said: "The Dodd-Frank Act has had a lot of bad consequences for our economy, but most of all in the small communities across our country".

U.S. Sen. Sherrod Brown of OH, the top Democrat on the Senate committee that oversees banking laws, said the proposal would gut the Consumer Financial Protection Bureau, which has returned nearly $12 billion to 29 million Americans who were cheated by shadowy debt collectors, for-profit schools, and payday lenders. Crapo has been working closely with his counterpart Sherrod Brown, a top Democrat on the panel, to find common ground. "I mean, that's just anathema to me to the founding principles of this republic", Hensarling said while speaking last month at the right-leaning American Enterprise Institute. "What a package would look like I don't necessarily know", he said, referring questions to Crapo.

The Idaho Republican has set his own target of early 2018 to pass major bank reform legislation.

That may be easier said than done, based on what is widely expected to happen next in the Senate, where 60 votes are needed and there are only 52 Republicans.

Reaction to the bill's passage from financial service trade association leaders was swift and positive.

The vote to repeal was more partisan than the House vote on the law in 2010. Dodd-Frank became the centerpiece of those reforms.

But the Thursday vote is another indication that much of that legacy could soon be wiped out by what is now a Republican-controlled Washington, D.C. The law might also gradually reduce the federal deficit. The legislation would also strip power from the Financial Stability Oversight Council, an interagency agency group now led by Mnuchin, to label financial firms that are not banks, such as Metlife, "too big to fail" and subject them to tougher regulatory oversight.

  • Salvatore Jensen