Later this year, the Dodd-Frank Wall Street Reform and Consumer Protection Act will reach its sixth anniversary, but if Congressional Republicans have their way, Dodd-Frank won’t reach anniversary number seven and many of the financial reforms enacted by the landmark law will be repealed or replaced.
According to the Republican arm of the House Financial Services Committee, Rep. Jeb Hensarling, R-TX, who chairs the House Financial Services Committee, is planning to announce a Republican plan to replace Dodd-Frank.
Hensarling plans to reveal the Republicans’ plan in a speech on June 7 at theEconomic Club of New York, the House Financial Services Committee said Tuesday.
During the speech, Hensarling is expected to announce a Republican-crafted plan to replace Dodd-Frank with a “pro-growth, pro-consumer” alternative, that includes the potential significant regulatory relief for financial institutions, as well as a dramatic overhaul of the Consumer Financial Protection Bureau.
While specific details on the plan are sparse at this point, Hensarling did reveal some of what can be expected in a recent speech at the National Center for Policy Analysis.
In that speech, given earlier this month, Hensarling called Dodd-Frank a “a monument to the arrogance and hubris of man.”
According to Hensarling, the country is “suffering” from the “slowest, weakest, most tepid recovery” in the country’s history.
“Some would say a lot of this has to do with our inefficient tax code, and it does. But beyond the tax burden that entrepreneurs face, there is a larger burden known as the regulatory burden – the sheer weight, volume, complexity, and uncertainty of a needless avalanche of Washington regulations – much of which has come from Dodd-Frank,” Hensarling said earlier this month.
According to Hensarling, the Republican plan to repeal and replace Dodd-Frank will undo much of the harm done by the law, and will be based on six principles, which are:
1. Economic growth must be restored through competitive, transparent, and innovative capital markets
2. Every American must have the opportunity to achieve financial independence
3. Consumers must not only be viciously protected from force, fraud, and deception, but also from the loss of economic liberty
4. Taxpayer bailouts of financial institutions must end, and no company can remain too big to fail
5. Systemic risk must be reduced through market discipline
6. Simplicity must replace complexity, because complexity can be gamed by the well-connected and abused by Washington bureaucrats
“Both Wall Street and Washington must be held accountable,” Hensarling said.