by Countable | 1.16.18
The push to overhaul the Dodd-Frank Act, a massive, signature piece of legislation aimed at regulating the financial industry that was passed after the Great Recession, is ramping up in the Senate. Reforms being drafted include drastic reductions to the number of banks subject to strict rules around federal oversight and regular "stress testing", which measures a bank’s ability to withstand an economic downturn.
Only 10 large banks would be left subject to the strictest levels of regulation.
Reform measures also include expanding consumer access to mortgages, reducing regulations on community banks and limiting credit report data collection, reports The Hill.
The Senate legislation is gaining bipartisan support from moderate Democrats. So far, Sens. Heidi Heitkamp (D-ND), Jon Tester (D-MT), Joe Donnelly (D-IN), Mark Warner (D-VA), Joe Manchin (D-WV), Claire McCaskill(D-MO), Tim Kaine (D-VA), Gary Peters (D-MI), and Angus King (I-ME) have signed onto the reform bill, formulated by Senator Mike Crapo (R-ID), head of the Senate Banking Committee.
The bill, entitled the Economic Growth, Regulatory Relief, and Consumer Protection Act, is expected to move out of committee and be brought to a floor vote within the next month, reports the New York Times.
Progressive senators, led by Sen. Elizabeth Warren (D-MA), who previously headed the Consumer Financial Protection Bureau which was created by the Dodd-Frank Act, have vowed to fight the legislation. She maintains that supporters are setting the country up for another taxpayer-funded bailout.
Supporters of the legislation, like Heitkamp, argue that the extent of regulation enforced by Dodd-Frank is stifling economic growth.
The Senate legislation is less sweeping in its deregulation effort than a related measure that passed the House in 2017. If it passes the Senate it would go to conference and have to be reconciled with the House version before it could make it to the president’s desk for final passage.
Do you support efforts to reform Dodd-Frank or not? What do you think of the Senate version of reform? Do you think it’s a reasonable compromise to stimulate growth? Do you think it doesn’t go far enough deregulating Wall Street, or do you think it’s setting us up for another financial crisis?
Tell us in the comments what you think, then use the Take Action button to tell your reps!
— Asha Sanaker
(Photo Credit: Edward Kimmel via Flickr / Creative Commons)
Written by Countable
There is a reason we need strong regulations in place and why Dodd-Frank should NOT be weakened. The Greed Over People (GOP) have shown us over and over again why we need this. They keep selling out their constituents for the “30 pieces of silver” their wealthy donors keep forking over. The American people are being betrayed by their legislators. It is time to stand up against the bullies in Congress and the White House.
This is another move by legislators and the banking industry to return to pre 2007 standards which allowed the Great Recession. Which originated or began in the US. If Dodd-Frank is further weaken we will once again set the conditions for another meltdown that tax payers will be force to pay for and endure. This effort in Congress is not for the benefit of consumers but for the benefit of the wealthy stock holders and they will not be the ones paying the price of their greed. How many paid any price in the Great Recession?
Do not weaken Dodd-Frank.
Please keep the banks in oversight! No one want a repeat of 2008!!
It is criminal to put the consumers in the position of having to subsidize obscenely wealthy bankers. These are the same bankers who let monsters like Mnuchin steal the homes of widows. These are the same bankers who assure borrowers they can easily afford a more expensive home then they went in to buy in the first place and then happily repossess that home when the borrower can’t manage to pay on time. Maybe our current set of legislators have never read about the Great Depression, maybe they haven’t seen the photographs of people in this country starving in the streets. Or, maybe they just don’t give a damn if it happens again as long as they line their own pockets. Relaxing regulations on banks will surely result in another Great Depression. We cannot be stupid enough and greedy enough to let that happen.
Please leave Dodd frank alone. We need strong regulations over the banking industry and Wall Street. Last time I checked the stock market hit an all time high, again. So how is big business suffering under these current regulations? Time and time again big busy has proven that when they are not being watched they will bend the rules in the name of profit. The economic burden for their gambles always falls on the shoulders of the tax payers. Even with Dodd frank intact look at the schemes Wells Fargo was able to come up with last year. Regulations are necessary, especially in a capitalist system where greed is rewarded. Please lend your full support to up holding Dodd frank.
I don’t think I could pull my small business through another recession. I barely made it the first go around! We need this protection!
Dodd Frank and Glass Steagall should be fortifed, extended, and given teeth. Bitcoin bubble shows that leaving fox in charge of henhouse is reckless and stupid. Put banks, funds, and dark pools on a leash; they should only exist to serve, not subjugate, society.
We need regulatory rules for banks. Commerce, being what it is will only look at bottom line. No more bailouts. If we stop abuses in advance, we will not have to rewrite personal finances to accommodate too big to fail corporations.
No. This is obviously giving in to more corporate and financial manipulation. We know where that goes. We pay for it.
Do not weaken Dodd-Frank! Have we learned nothing from 2008??!! Why would we want to go back and create the same environment for another recession?? Where millions of people lost housing, jobs, and pay for years. Are we that out of sight out of mind? You know what they say about people who do the same thing but expect different results...
Let’s save the American people another depression and let’s separate these banks once and for all. Implement a modern glass-steagall act
Dodd-Frank took us out of the 2008 recession. We can't run those risks any longer. Please, restore Dodd Frank in full, to U.S law. We can not allow Banks and financial institutions to over run America.
Sorry Bernie, no one forced backs to create no doc loans, pursue, illegally, mortgage foreclosures, create credit default swaps and on and on. They did these things because it was profitable to do, consequences to the country be damned. It was profitable to create no doc loans because the originating bank weren’t going to keep them on their books, they bundled them up into securities, lied about the quality of the loans and palmed them off on the next sucker in line. They were lucky Dodd-Frank wasn’t as tough as it should’ve been and they, most certainly, are not suffering under its requirements.
No more corporate control of our government! Enough is enough!
Im not in favor of the reduction, the experience of lending a cooperation public fund to save them from their own risky practices to have those funds used form CEO benefit packages tainted me.
While I support Dodd-Frank as better than no regulation, I believe the true solution to the excesses that produced the "Great Recession" is a reinstatement of the Glass-Steagall act. That legislation responded to the financial excesses that produced the Great Depression and prohibited combining banking and investment functions under one roof. The mingling of those two functions in large bank corporations generously provided us the massive financial disruption we have since dubbed the Great Recession. If you truly want to prevent another Great Recession or Great Depression, reenact Glass-Steagall. No one in the banking industry likes it, which guarantees that it would protect us from the their greed.
We need to keep Dodd-Frank.
As soon as I read this, the hairs on my neck stood up and alarm bells went off in my head! 10 years ago we crashed into a ditch because of the Republicans and now they are hellbent on doing it again! Put the GOP in the coffin and nail it shut!
I’m asking please to both my Senators Chuck Schumer, Kirsten Gillibrand and Congress member Carolyn Maloney to vote against any and all bills to weaken Dodd Frank. We new Glass-Steagall legislation separating commercial and investment banking NOW.