Speaker Paul RyanPaul RyanEx-GOP rep: Ryan's impeachment claim about Trump "isn't true" Tom Brokaw: "Trump ran as a big time exec, not as an apprentice" Trump praises House vote to dismantle Dodd-Frank MORE (R-Wis.) and GOP leaders touted the bill before Thursday's vote. House Republicans recognize the uphill climb, but are happy to chalk up a victory.
House passage was widely expected. Senators have said they'll spend the next few months trying to find common ground on legislation to boost the economy. The Senate has been working on another measure that is more focused on easing regulations on community banks. It also places new restrictions on the Consumer Financial Protection Bureau, bringing it under much stricter oversight by Congress, while eliminates powers granted to financial regulators after the 2007-09 financial crisis.
The bill would allow banks with a simple leverage ratio of 10 per cent or higher to be exempted from a number of regulatory requirements, including Dodd-Frank's heightened standards for larger lenders. They say the law has meant financial security to millions of people and that undoing it would encourage the kind of risky lending practices that invites future economic shocks.
Since its inception, the CFPB has successfully gone after and punished banks who deceive consumers, returning $12 billion in bad acts by the banking industry to consumers.
"We are losing one community bank or credit union every day under the Dodd-Frank Act", Thornberry said. In the House, we just threw it off.
Its major changes include repealing the trading restrictions, known as the Volcker Rule, and scrapping the liquidation authority in favor of enhanced bankruptcy provisions created to eliminate any chance taxpayers would be on the hook if a major financial firm collapsed.
The bill would also eliminate the Labor Department's controversial fiduciary rule, which requires brokers to act in the best interest of their clients when providing investment advice about retirement. The legislation would instead set up a new bankruptcy process, with the goal of minimizing the risk of a taxpayer-funded bailout for "too big to fail" banks. "There is literally no one who is helped by repeal of the Volcker Rule except big banks", Yarmuth said.
"We see free checking cut in half at banks".