GOP-led panel OKs bill to overhaul Dodd-Frank

Wall Street bull statue

Sam Valadi

A House committee passed the Financial CHOICE Act today, approving a bill that would gut significant parts of the landmark Wall Street reform law passed in the wake of the financial crisis. Hensarling wrote much of the overhaul legislation. "Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices". Republicans have long argued that the 2010 bill has suffocated economic growth, crushed banks and limited choices under overbearing, costly rules.

Rep. Brad Sherman (D-Calif.), however, said that some aspects of the bill could find favor among Democrats.

Waters added that the bill is "dead on arrival in the Senate, and has no chance of becoming law". "So we're going to look at that", Trump said during an interview with Bloomberg News.

In a fast-moving session following two days of laborious debate, the panel flew through a series of votes on amendments, as the majority Republicans easily beat back Democrats' attempts to reshape and soften the legislation.

The measure, called the Financial Choice Act, would repeal the Volcker rule that prohibited banks from speculating in the markets. Note, too, that the Democrats held their own hearing on the CHOICE Act last Friday, in which they emphasized how the bill would harm consumers, investors, and the economy; while highlighting the ways that Dodd-Frank has kept consumers safer following the financial crisis.

Our association is on record advocating for meaningful reform, not repeal, of Dodd-Frank, so that our community banks aren't crushed by a one-size-fits-all regulatory system. Gary Cohn, the former Goldman Sachs Group Inc. executive who leads Trump's National Economic Council, in a statement Wednesday called Hensarling's bill "an important step forward on a key priority of this administration".

Under the Choice Act, the CFPB would not longer have the authority to unilaterally act against deceptive and unfair practices.

On Tuesday, May 2, the Senate Banking Committee has scheduled a hearing titled "Examining the USA - E.U. Covered Agreements". President Trump nominated Mr. Clayton in January and the Senate Banking Committee voted to in April to advance his nomination, which notably received three votes from Democrats.

Renaming the Consumer Financial Protection Bureau as the Consumer Law Enforcement Agency, with a deputy director appointed by the president and removable at will.

Our colleagues at Consumers Union say the bill's approval puts consumers at risk while protecting the financial interests of big banks and shady lenders.

The advocacy group Consumers Union criticized the legislation, saying the consumer agency has worked to win nearly $12 billion in refunds and relief for an estimated 29 million Americans. Instead, it applies to "financial institutions", a term so broadly defined to include any business that engages in financial activities, including insurance, and which is why more than 30 wide-ranging business trade associations strongly oppose this measure.

The Creating Hope and Opportunity for American Investors, Consumers, and Entrepreneurs (CHOICE) Act of 2017, sponsored by committee chair U.S. Rep. Jeb Hensarling (R-TX), seeks to ease some of the Dodd-Frank Act's regulations.

Despite years of heated partisan battles over Dodd-Frank, Hensarling said the committee has a track record of working together and could continue to do so after the CHOICE Act clears.

When asked about efforts to retain the Durbin amendment, Rep. Keith Ellison (D-Minn.), another Financial Services member, said in a brief interview that he is "consulting" with colleagues on a possible change to the bill, but otherwise said he wasn't prepared to speak further about the issue.

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