Republicans slash Dodd-Frank Act amid Comey testimony excitement
- Author: Zachary Reyes Jun 16, 2017,
Jun 16, 2017, 22:28
In a primarily partisan vote, the House passed the CHOICE act which stands for the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act.
Yet clearing the bill through one chamber has both practical and symbolic value, proving House Republicans are united in their rollback of financial regulations and giving baseline legislative language that the Senate might select in a more modest legislative package.
All Ohio Republicans voted for the bill.
The vote in favour to pass the Choice Act took place on the same day that the former FBI director Mike Comey testified to the Senate about the circumstances of his firing and allegations he was pressured by Trump to drop the investigation into Russia's influence in the 2016 elections. That way, even if they run into financial trouble, the banks should have enough money to survive without taxpayers' help, supporters of the bill say. "The financial crisis exposed a broken regulatory system allowing Wall Street to gamble with Main Street's future".
The Hensarling bill is an embrace of free-market principles over Dodd-Frank regulations that he and other Republicans argued inhibited economic growth.
Democrats believe it puts consumers and the economy at risk, calling it the "Wrong Choice Act".
The new legislation, known as the Financial CHOICE Act, is the signature legislative effort of U.S. Rep. "This is a big step forward in the necessary reform of Dodd-Frank's onerous efflorescence of regulatory bureaucracy". According to a 2017 report from S&P Global, the seven largest USA banks would have to collectively raise hundreds of billions of dollars in new equity to meet the new capital requirement and receive regulatory relief. Finally, other major provisions of the CHOICE Act provide relief for community banks, which have suffered as a result of heavy paperwork and compliance burdens under Dodd-Frank. "It may or may not pass [the House], but I'm sure that it will not pass the United States Senate", Minority Whip Steny Hoyer told reporters Thursday afternoon before the vote.
Rep. Steve Knight (R-Lancaster) also supported the bill, saying on Thursday, "The Financial CHOICE Act will allow small businesses to grow by expanding vital access to capital". That's the landmark banking law created to prevent meltdowns like the 2008 economic crisis.
Despite the bill's passage in the House, the prospects that it will become law are dim. He said the bill will end what he called bank bailouts.
Consumer groups said the measure would "gut" the Consumer Financial Protection Bureau, a watchdog agency for financial fraud.
In addition, the bill would weaken the Consumer Financial Protection Bureau, a GOP target since its inception in 2010.
Proper oversight is vital to protecting consumers, but Dodd-Frank was not the answer. "Here's the bottom line: Donald Trump and Republicans want to open the door to another economic catastrophe like the Great Recession and return us to a financial system where reckless and predatory practices harm our families and communities".