Published: Thu, June 15, 2017
Culture | By Stewart Greene

House Passes Bill Aimed At Reversing Dodd-Frank Financial Regulations

Trump tweeted on Friday, "Congratulations to Jeb Hensarling and Republicans on successful House vote to repeal major parts of the 2010 Dodd-Frank financial law". "There is a better way: economic growth for all; bank bailouts for none".

"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.

The Financial Choice Act now heads to the Republican-controlled Senate where California's two Democratic senators are expected to vote against it.

"It's shameful that Republicans have voted to do the bidding of Wall Street at the expense of Main Street and our economy".

Also targeted for reform by the bill is the Consumer Financial Protection Bureau, which would be renamed the Consumer Law Enforcement Agency and stripped of its examination powers and "UDAAP" enforcement authority.

The largely party-line vote was 233-186, as Republicans argued the rules created to prevent another meltdown were making it harder for community banks to lend and hampered the economy.

President Donald Trump has pledged to repeal the law.

While Crist was denouncing the bill, other Tampa Bay area Republicans were rejoicing in its passage.

"The bill even specifically exempts payday and vehicle title lenders - notorious for springing devastating debt traps for their already vulnerable customers - from any regulation", added Yana Miles, senior legislative counsel for the Center for Responsible Lending.

"Washington bureaucrats should never pick winners and losers, but that's exactly what Dodd-Frank did", said a statement from Gibbs. "As a result, community banks are not only making fewer loans to local job creators, they are closing their doors".

Knight co-sponsored a provision within the Financial Choice Act, called the Helping Angels Lead our Startups Act or HALOS, which he said aims to help small businesses by "allowing startups and investors to cut through unnecessary red tape and provide them with new opportunities to succeed".

Lance added that those who have lost the most under Dodd-Frank are those who can't afford to take their business elsewhere. Its journey through the Senate, however, is expected to be much more hard, with Democrats keen to curtail any attempts to soften regulation of financial services.

Critics argue that Dodd-Frank cramped lending - despite data to the contrary - and imposed undue costs and restrictions on smaller community banks, which were not involved in the risky behavior that fueled the mortgage crisis. Federal Reserve Chair Janet Yellin has endorsed efforts to "mitigate the regulatory burden" when it comes to small banks.

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