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Representative Jeb Hensarling, who chairs the House Financial
Services Committee, also set an April 26 hearing to discuss
replacing the 2010 law. (http://bit.ly/2oMiHL4)
"Republicans are eager to work with the president to end and
replace the Dodd-Frank mistake with the Financial CHOICE Act
because it holds Wall Street and Washington accountable, ends
taxpayer-funded bank bailouts, and unleashes America’s economic
potential," the Texas Republican said in a statement.
The blueprint of Hensarling's bill has been known for some time.
He first introduced a similar measure in 2016, where it passed
his committee but was not considered by the full House.
Representative Maxine Waters, the top Democrat on the committee,
has dismissed Hensarling's bill.
“The new version, which is even worse than Chairman Hensarling’s
first draft, cannot be allowed to become law. There is too much
at stake for consumers and for our economy at large," she said
in a statement earlier this month.
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.
(Reporting by Pete Schroeder; Editing by Lisa Shumaker)
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