House passes bill to undo Dodd-Frank financial rules

House passes bill to undo Dodd-Frank financial rules

Legislation he voted in favor of on Thursday that will reverse numerous regulations involved in the controversial Dodd-Frank Financial reform act.

President Trump on Friday praised the House's passage of a sweeping bill to strip much of the Dodd-Frank financial reform law in a celebratory tweet.

Rep. Brad Sherman, a Democrat from California, said in a speech on the House floor that the conventional wisdom believes the Choice Act has little chance of passing the Senate.

The bill would repeal a rule that bans banks from engaging in propriety trading or forming certain relationships with private equity funds.

The Congressional Budget Office, a non-partisan evaluator of legislation, estimates the bill would save the federal government $24 billion over a decade, mostly by lifting the government's authority to step in and unwind failing institutions.

It also eases numerous regulations called for under the Obama administrations 2010 financial reform law, known as Dodd Frank.

Republicans say many requirements imposed under what is known as the Dodd-Frank Act, named after its Democratic sponsors, have harmed economic growth by making it harder for consumers and businesses to get loans. 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.

This is published unedited from the IANS feed. Despite having nothing to do with the financial crisis, community banks, their hundreds of employees and thousands of customers have felt the brunt of this law.

President and CEO of the American Bankers Association Rob Nichols explained that the bill is not seeking to entirely repeal Dodd-Frank, but rather dial back aspects that "overshot".

The bill includes measures that would allow cuts in regulatory requirements for banks and cut stress tests back from their current annual schedule and would scrap the Consumer Financial Protection Bureau.

“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 bill passed 233-186, with no support from Democrats.

Republican Rep. Jeb Hensarling introduced the measure April 26.

Fed data show that the trend toward mergers far preceded the Dodd-Frank law. "The ranks of the unbanked have increased", he said.