Abril 24, 2018

House votes to gut Dodd-Frank

17 Junio 2017, 01:02 | Martinez Canez

The U.S. House of Representatives on Thursday was expected to approve a bill to overhaul the Dodd-Frank Act.

The Dodd-Frank was passed as a consumer protection act in mid-2010 in response to the financial crisis - known as The Great Recession - which led to 165 failed financial institutions.

"With the majority that they have in the House and the Senate and President Trump, this is their big opportunity to deregulate, deregulate, deregulate - and they're going to go for it", she said. It primarily targets the Dodd-Frank Wall Street Reform Act which was enacted a few years after the collapse.

"Today a bill to roll back Dodd-Frank will take the final step in never being approved by the Senate", tweeted Sean Tuffy, an expert on financial regulation at Brown Brothers Harriman.

It also scales back the authority of the Consumer Financial Protection Bureau, a major effect of Dodd Frank created to guard consumers against abuses in lending and advertising for financial products.

While the bill breezed through the House chamber, its path forward in the U.S. Senate is far less certain, where Democratic support would be needed to draw the necessary 60 votes.

Rep. Jeb Hensarling, who chairs the House Financial Services Committee, said Dodd-Frank ended up being a series of broken promises.

For example, before the Dodd-Frank Act became law in 2010, 75 percent of banks offered free checking accounts, but by 2016, only 38 percent did so. Dodd-Frank has hurt everyone from small businesses to homebuyers. "What's worse, it hit rural America the hardest, allowing big banks to get bigger while crushing small businesses and farmers" ability to get the loans they need.

"Consumer groups, civil rights groups, veterans groups - everyone who's not a big bank - opposes this 'wrong choice act.' Democrats remember the 2008 financial crash".

The bill will go on to the Senate, where the Republicans will have to scrounge together the votes of at least eight Democrats - or make more moderate changes to the legislation - in order for it to pass. The bill is primarily created to rollback regulations that were implemented in response to the financial crisis of 2007. Lenders got in trouble following mass defaults of risky mortgages, then required a government bailout when they didn't have the capital to cover their losses.

"Today's passage of the Financial CHOICE Act is a awful decision by the House of Representatives", left-leaning think tank Economic Policy Institute said of the vote.

"This bill turns the clock backwards on financial industry oversight by gutting the CFPB and would leave Americans vulnerable to financial fraud and rip-offs", Pamela Banks, senior policy counsel for Consumers Union, said in a statement.

Otras noticias

Tendencias Ahora

Undercooked Warburton anxious about Lions spot
Stuart Hogg faces a nervous 48-hour wait to discover whether his cheek injury could end his British and Irish Lions tour. The Kiwi-born defensive specialist is Ireland's first-choice outside centre, but can also excel in the 15 shirt.

Fowler leads on day of subpars and sobs
The top three players in the world have never missed the cut in the same major dating to when the world ranking began in 1986. He punched the third back into the fairway but needed two more to get on the green and two to get down for his second seven.

Trump Acknowledges He's Being Investigated In Firing Of Comey
The transition, a nonprofit structurally separate from the Trump campaign, continues to operate with a small staff. A White House spokeswoman declined to comment and referred questions to Trump's personal attorney Marc Kasowitz.

Samsung Galaxy S8 And S8 Plus Get Bixby Voice Sneak Peek
If that's not the case, we hope we can count on our American cousins not to teach Bixby all of their bad English language habits. T-Mobile, Verizon , and Sprint have all issued the update to Android 7.0 Nougat for the Samsung Galaxy Tab S2 from 2016.

Cristiano Ronaldo seeks Real Madrid exit after tax accusations
The Ballon d'or victor has made history at FC Real Madrid , leaving fans extremely curious to why he wants to depart. The 32-year-old has scored 406 goals in 394 appearances since joining Madrid from Manchester United in 2009.

Cuba condemns Trump's 'hostile rhetoric' but still wants to talk
He is available to weigh in on these and other questions related to the historical relationship between the USA and Cuba . But the new policy, once again, restricts the number of reasons Americans may claim when attempting to visit the island.

Portugal hoping Ronaldo can continue his good form in Russia
Joachim Low has rested a number of his big name players, with the likes of Mesut Ozil, Toni Kroos and Thomas Muller not selected. If the team can handle the pressure of hosting, it has the chance to start off on the right foot against the Oceania champions.

Alexandria gunman carried list of names of members of Congress
The FBI believes Hodgkinson had moved from IL to Alexandria in recent months, and was living in his vehicle. A police report said that the foster dad was "observed throwing" the foster daughter "around the bedroom".

US Open 2017: Rory McIlroy motivated by 'busy summer' after missing cut
The Englishman began the day one shot behind Fowler and quickly joined the American at the top of the leaderboard. With about two hours left in the second round, the cut was looking to be 1-over par, which would tie a U.S.

Lt. Gov. Smith Leading Bipartisan Delegation on Cuba Trip
His tougher approach will prevent United States dollars from being used to fund Cuba's government. Chamber of Commerce executive vice president and head of global affairs.