Trump, GOP Seek To Eliminate Dodd-Frank By Year’s End
Thu 02 Feb, 2017 / by McIntyre & Lemon / Client Alerts
02/02/17 – Law360 reports that a top Republican lawmaker has vowed to repeal the Dodd-Frank Act and replace it with a new financial regulatory system within a year, now that President Trump has named it a top administration priority.
House Financial Services Committee Chairman Jeb Hensarling, R-Texas, said in a statement that he would work with the Trump administration to repeal former President Barack Obama’s signature financial regulatory reform law by the end of the year and replace it with a new system.
Hensarling’s statement came after Trump named financial deregulation as one of his top priorities, along with immigration restrictions, the construction of the border wall with Mexico, renegotiating existing trade deals and repealing the Affordable Care Act, at a Republican retreat in Philadelphia.
What comes in Dodd-Frank’s place remains an open question. Hensarling pointed to his Financial CHOICE Act, legislation he introduced last year, as a potential model for a new system.
The centerpiece of Hensarling’s legislation is a provision that would allow banks to get out from under many of Dodd-Frank’s capital and other prudential rules in exchange for complying with a simple 10 percent leverage ratio. Dodd-Frank requires the banking regulators to put in place capital and other prudential enhancements required under the 2010 Basel III international banking accords.
The legislation, as passed, would take a hatchet to the Consumer Financial Protection Bureau by putting a commission at its top rather than a single director and putting its funding into the hands of Congress.
Law360 (sub. req.).