Dallas Morning News: Rep. Jeb Hensarling on financial reform: 'Dodd-Frank clogs the arteries of capitalism' FILED UNDER
Texas Rep. Jeb Hensarling, who chairs the powerful House Financial Services Committee, is pushing his broad-brush redo of the 2010 Dodd-Frank law to Wall Street and his congressional colleagues.
The Texas Republican introduced his Financial Choice Act last year, which would eliminate a ban on certain investments, the Financial Stability Oversight Council's ability to label firms that pose risks to the wider financial system, and regulators' ability to intervene when banks fail. He's set to unveil an updated version as soon as this week.
The bill never made it to the floor last year, but it's likely to become the starting point for their efforts this year.
In an interview Tuesday with CNBC, Hensarling said he's ready to work with President Donald Trump to dismantle Dodd-Frank's financial regulations put in place after the 2008 Wall Street meltdown.
"What Obamacare is to household health care, Dodd-Frank is to household finances," he said. "People are hurting. The economy still isn't working for working Americans. They've seen their paychecks become stagnant. They've seen their savings still not recovering from the great financial crisis."
"Dodd-Frank clogs the arteries of capitalism in our system," he told CNBC. "It hurts working people. It hurts consumers. It needs to go."
Even if Hensarling gets the bulk of his bill through the House, it won't receive significant consideration when it reaches the Senate, according to Ed Mills, a financial policy analyst FBR Capital Markets. Hensarling acknowledges the hurdle.
"The House will probably move a little quicker and probably move a little bolder," Hensarling said in an interview with Bloomberg Television. "At some point, we will go and deal with whatever the Senate work product will be."
The new Senate Banking chairman, Mike Crapo of Idaho, hasn't yet outlined his own plan, but the Republican prides himself as a dealmaker and wants to work with Democrats. He said he is collaborating with the administration, House and members on the committee to devise a plan.
Trump's pledge to dismantle Dodd-Frank is colliding with the same reality as his pledge to gut Obamacare: The Republican majority in Congress can't decide how to make it happen and Democrats are vowing to fight.
Information from Bloomberg also was used in this story.