The Dodd-Frank law is a Wall Street reform that the former President Barack Obama signed as a measure against the 2007-2008 financial crisis. The bill consolidated a Consumer Protection Act that claims a transparent and responsible financial system. However, the House Republicans are after a new replacement for the law that suits more a post-recession financial status. Chairman Jeb Hensarling set a hearing to discuss the new proposal that has 600 pages.
House Republicans Aim at Unleashing the Potential of the American Business
President Donald Trump has advocated from the beginning of his presidential campaign in favor of a stronger America. One of his plans to achieve this target is to loosen financial regulations that kept businesses in check since the 2007 financial crisis. Thus, House Republicans managed to create a 600-page replacement of the Dodd-Frank bill. Chairman Jeb Hensarling of the House Financial Services Committee has already scheduled a hearing to discuss the new version of the 2010 law. The meeting will be held on April 26.
“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 aim of the Dodd-Frank bill was to prevent the financial sector from ever recreating the 2007 financial crisis again. Its supporters are of the opinion that a tighter control over this department is keeping any threat to the U.S. economy at bay. On the other hand, House Republicans consider these regulations as a chocking system for the true potential of the country. They believe that the 2010 act puts too much burden on businesses to be able to evolve to higher levels.
New Dodd-Frank Replacement Will Limit the Powers of the Consumers Watchdog
The replacement of the Dodd-Frank bill is actually the second draft of an older strategy of the Representative Jeb Hensarling. He tried to introduce the original bill in 2016. However, the proposal couldn’t earn the approval of the full House. The act would render large portions of Dodd-Frank null. However, in order for the new proposal to become law, it needs eight Democrats to give it their vote. Nonetheless, analysts don’t see the replacement strong enough to achieve such a milestone.
The new 600-page draft would also act against the watchdog that protects the interests of the consumers, namely the Consumer Financial Protection Bureau. For the moment, the department is an independent one that makes sure businesses do not violate consumers’ rights. However, the proposal would eliminate some of its powers and would also allow the Congress to oversee all decisions of this department.
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