U.S. House banking chairman unveils Dodd-Frank replacement
Source: MSN/Reuters
The 2010 Dodd-Frank law established strict rules on the financial sector to prevent a repeat of the 2008 financial crisis. Republicans like Hensarling, as well as President Donald Trump, believe the regulations put an undue burden on businesses and have held back the economy by restricting lending. But Hensarling's ambitious approach, which would eliminate huge portions of Dodd-Frank, faces an uncertain political future beyond the House. At least eight Democrats would need to support a financial reform bill in the Senate for it to pass, and the major changes proposed by Hensarling are not expected by industry experts to garner that type of support.
Instead, the Senate is expected to take a slower, piecemeal approach to revisiting financial rules, with a focus on changes that could garner bipartisan support.
Hensarling's bill would make a host of changes to financial rules in the United States. For example, banks could significantly increase the amount of capital they hold, and in turn no longer have to adhere to a host of existing Dodd-Frank rules.
Hensarling's bill also severely restricts the power of the Consumer Financial Protection Bureau, while bringing it under much stricter oversight by Congress. The measure is likely to be met with strict opposition by Democrats in Congress.
Read more: http://www.msn.com/en-us/news/politics/us-house-banking-chairman-unveils-dodd-frank-replacement/ar-BBA3A6K
I guess it is a good thing that Trump repeatedly attacked big business and banks and promised to drain the swamp. Democrats should follow his populist example.
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