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Perlmutter criticizes Dodd-Frank rewrite now slated for House vote
A Republican-led effort to rewrite the rules of the massive, post financial crisis measure Dodd-Frank is slated for a full House vote in June, despite Democrat’s effort — among them U.S. Rep. Ed Perlmutter — to derail the legislation in committee.
At odds are Perlmutter’s contention that the Dodd-Frank Wall Street Reform and Consumer Protection Act is critical and put in place to bring discipline to the financial markets after the 2008 financial crisis and a new GOP-sponsored Financial CHOICE Act which would eliminate much of the post-recession legislation.
The bill would allow banks to opt out of Dodd-Frank if they hold enough capital and strip power from federal agencies created under the post recession measure like the Consumer Financial Protection Bureau. Republicans have argued the regulations under Dodd-Frank have stifled economic growth.
During a hearing in the House’s Financial Services Committee May 4, Perlmutter said his Republican counterparts have a short memory of the country’s financial meltdown, in which at one point the country was losing hundreds of thousands of jobs per month. The bill eventually passed the committee on a party line vote of 34-26 after days of discussion and markups.
“We put Dodd-Frank in place to bring some discipline to the financial markets and since then, on average, we’ve been gaining 200,000 jobs a month” Perlmutter, a Democrat from Arvada, said. “There are times you have to have discipline to protect people, whether it’s the consumer, whether it’s the business or whether it’s the homeowner.
“Repealing Dodd-Frank will bring back a wild west approach to financial regulation and we cannot go back to those days,” Perlmutter said.
Committee Democrats introduced a number of amendments to the CHOICE Act, among them a Perlmutter amendment, which would have stopped the implementation of the legislation until regulators could determine how it would directly benefit any creditor listed in President Donald Trump’s previous seven years of tax returns. Republicans ultimately blocked all the Democrat’s proposed changes.
“The only way to fully understand President Trump’s conflicts of interest is if he releases his tax returns. The American people deserve to know if the President is operating in their best interests,” Perlmutter said in a statement. “And until we see his tax returns and know the different business interests that President Trump has, we won’t know if the executive branch is operating in the best interests of all Americans.”
The bill’s author U.S. Rep. Jeb Hensarling, R-Texas, who serves as chairman of the Financial Services Committee, said the legislation ends taxpayer-funded bailouts of banks deemed too large to fail and will promote economic growth.
“Our plan replaces Dodd-Frank’s growth-strangling regulations on small banks and credit unions with reforms that expand access to capital so small businesses on Main Street can grow and create jobs,” Hensarling said.
Earlier this year, U.S. Rep. Scott Tipton reintroduced the TAILOR Act, which would ease regulatory compliance for smaller community banks and credit unions.Content originally published by Colorado Politics on May 22, 2017.