Trump tweets support for banking bill
- Author: Zachary Reyes Jun 09, 2017,
Jun 09, 2017, 23:46
They also believe the sweeping finance reform slowed economic rebound and allowed for taxpayer bailouts of big banks. But with this bill, the Republicans will undo these safeguards, eviscerate the Consumer [Financial Protection] Bureau, take our country back to the days of massive taxpayer bailouts. "We will replace economic stagnation with a growing, healthy economy".
Trump started his attack on Dodd-Frank soon after taking office, ordering a Treasury Department review of the complex rules that have put the legislation into practice.
A Republican push to overhaul United States financial rules put in place after the 2008 crisis is gaining momentum. Instead, the Senate is more interested in a broad-based bipartisan bill that focuses on economic growth and could include some financial regulation reform, NBC News has reported.
Smaller, local banks historically have lent heavily to small, local businesses.
"When that was being discussed, people said there would be no lending to people of color and they would get no loans and there would no lending again", Miles said.
"Our community banks are in trouble", said Speaker Paul Ryan, R-Wis.
"Under Dodd-Frank, we're losing on average one community bank per day". This law may have had good intentions, but its consequences have been dire for Main Street. Before the policy, big banks paid a much higher funding fee than smaller banks, and Dodd-Frank reversed that in 2010; under the law, small banks actually paid more for funding than big Wall Street banks.
Reaction to the bill's passage from financial service trade association leaders was swift and positive. The administration is expected to release a report next week outlining its financial regulatory goals. "We look forward to working with Congress to get numerous provisions in the CHOICE Act to the President's desk".
The Financial CHOICE Act now moves onto the Senate for consideration.
Further, the legislation would change the Consumer Financial Protection Bureau (CFPB) to the Consumer Law Enforcement Agency. (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS) and Bank of America Corp. The CFPB was established in the wake of the 2008 crisis in order to provide oversight that regulatory agencies previously failed to provide.
The American Bankers Association applauded the House vote, saying the bill would "fix financial rules that are holding back the USA economy, and doing little to enhance safety and soundness".
The bill, called the Financial Choice Act, would chip away at about 40 provisions and regulations put in place via Dodd-Frank, including regulators' authority to both wind down a financial institution perceived to be on the brink of failure and to identify an institution as a risk to the economy. "Demos condemns this bill and urges members of Congress to vote against it". Not surprisingly, Democrats were immediately angry with the results of the vote.
Democratic Rep. Maxine Waters of California urged senators not to take up the House bill. Lawmakers on the Senate Banking Committee, led by Sen.