Economy

Trump tweets support for banking bill

The House voted along party lines Thursday to repeal numerous stricter regulations enacted after the 2008 financial crisis, taking the first step in a long-held Republican desire to roll back landmark rules they complain are hurting banks, restricting consumer credit and slowing economic growth.

The White House was less effusive, asking the House on Tuesday to pass the CHOICE Act but to work with the Senate on changes that could earn enough support to overcome a Democratic filibuster. Democrat critics said it would "pave the way" for economic damage on the scale of the financial crisis or worse. It would also rid USA law of the notion of "too big to fail", meaning taxpayers could no longer bail out large financial institutions that run out of cash, thus making sure that any future financial failures would guarantee a systemic threat to the entire global economy.

Perhaps the biggest partisan flashpoint - the bill scales back the authority of the Consumer Financial Protection Bureau to regulate large banks and payday lenders.

Sewell continued, "Between the home foreclosures, rising unemployment, and the families whose dreams were stripped away to pay for Wall Street's mistakes, it is hard to forget".

The bill also repeals a prohibition knows as the Volcker Rule that bans banks from engaging in propriety trading or forming certain relationships with private equity funds. "These costs are unsustainable for small, community banks, who cannot afford to meet all the requirements and can't hire a team of lawyers to decipher the seemingly endless rules".

Big financial firms favor the House bill's removal of the retirement account rule, commonly named fiduciary rule, which forces brokers to put customer interest before their own. It will provide accountability by subjecting the agency to Congressional oversight and the normal Congressional appropriations process.

Dodd-Frank is a wide-ranging law that clamps down on regulations of banks and other financial institutions.

The Federal Reserve has described the USA banking system as much more robust and resilient than it was before the financial crisis.

"Instead of protecting consumers, Republicans choose to help those who try to cheat consumers", House Minority Leader Nancy Pelosi said Thursday.

"Dodd-Frank is just overly complex and burdensome". "Dems enacted the strongest consumer financial protections in history".

Former Congressman Barney Frank, the namesake of the bill along with Senator Christopher Dodd, admits that in some cases, the bill was too restrictive on small banks. It would no longer be able to write major rules regulating consumer financial companies, such as debt collectors, without getting approval from Congress. Graves opposed the bank bailouts after the 2007-08 financial crisis, while also voting against allowing the federal government to bail out the auto industry.



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