Dodd-Frank
mines have participated in unfair or deceptive practices in their financial products and services. The Consumer Financial Protection Bureau has returned $29 billion to 12 million consumers who were victims of deceptive marketing, discriminatory lending or other financial wrongdoing.
“All we’re doing is spending our time taking away protections for the American people and their futures. Have we learned nothing?” asked Rep. Steny Hoyer, D-Md.
Several Democratic lawmakers insisted they were willing to make some changes to Dodd-Frank, but that the Republican bill went much too far.
“The bottom line is we put an end to the Wild West of Wall Street, and were on a nice, steady playing field,” said Rep. Michael Capuano, D-Mass. “We should be able to adjust it, but we should not throw it out.”
The bill would repeal a rule that bans banks from engaging in trading for their own profit using federally-insured deposits, or forming certain relationships with private equity funds.
It would roll back a proposed rule that investment advisers who collect commissions must put their clients’ interests ahead of their own.
Also, financial regulators would lose the power to dismantle a failing financial firm and sell off the pieces if they decided its collapse could endanger the system. Instead, the bill would let banks fall under an expanded part of bankruptcy law.
The overhaul of Dodd-Frank was crafted by Rep. Jeb Hensarling of Texas, chairman of the House Financial Services Committee. Hensarling said that consumers have suffered as a result of Dodd-Frank.
“We see free checking cut in half at banks. Bank fees are up. The ranks of the unbanked have increased,” he said. “For many credit-worthy borrowers, they are paying $500 more for an auto loan. Have you tried getting a mortgage recently? They’re harder to come by and they cost hundreds of dollars more to close.”
Trump started his attack on DoddFrank soon after taking office, ordering a Treasury Department review of the complex rules that have put the legislation into practice.
One part of that review is expected to be released soon. It could provide a blueprint for regulators to rewrite the rules.
But it would take legislation to revamp the law — and that’s far from a certain prospect.
The American Bankers Association applauded the House vote, saying the bill would “fix financial rules that are holding back the U.S. economy, and doing little to enhance safety and soundness.”
Consumers Union criticized the vote and called on the Senate to “reject this rollback of critical consumer protections.” AARP also was among groups opposing the bill.
Rep. Walter Jones of North Carolina was the only Republican to vote against the bill.