GOP-run House poised to roll back post-2008 financial rules
Jun 21 2017
On Thursday of this week, the U.S. House of Representatives took a step toward dismantling the Dodd-Frank Act that put into place regulations on the banking and financial services industries following the financial crisis of 2007-2008.
The House of Representatives pushed through a bill Thursday that would gut numerous key banking reforms implemented after the financial crisis. The bill also significantly curtails the powers of Consumer Financial Protection Bureau, a potential sticking point from Senate Democrats.
"They are setting the stage for Wall Street to run amok and cause another financial crisis", Waters said.
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.
During the debate, the two sides sparred over whether Wall Street is in favor of the Choice Act.
Republican supporters of the bill claim Dodd-Frank stifles small business and the domestic economy with too much regulation.
The bill would repeal a rule that bans banks from engaging in propriety trading or forming certain relationships with private equity funds.
Schardin said that the Senate will likely take a stab at producing a comprehensive regulatory reform bill late in the year, but one that will likely differ significantly from the CHOICE Act and be scaled smaller.
"Our community banks are in trouble", Ryan said.
The bill must still go to the Senate. It would also repeal a Labor Department regulation that puts client interests ahead of investment brokers'.
"The Dodd-Frank Law is an example of over-regulation costing jobs".
The legislation also repeals Dodd-Frank's Durbin amendment, which places limits on debit card processing fees, and the Volcker Rule, which bans banks from speculatively investing borrowed money in ways proven not to benefit customers, among other cuts to provisions specifically created to protect the average Jill.
"Instead of protecting consumers, Republicans choose to help those who try to cheat consumers", House Minority Leader Nancy Pelosisaid Thursday.
The bill overhauling bank rules was sponsored by House Financial Services Committee Chairman Jeb Hensarling.
In addition, the legislation reins in the Consumer Financial Protection Bureau (CFPB) to empower all Americans to achieve financial independence. Dodd-Frank has hurt everyone from small businesses to homebuyers. That's the landmark banking law created to prevent meltdowns like the 2008 economic crisis.