Influential GOP congressman wants to replace key bank regulations

House Financial Services Committee Chairman Jeb Hensarling, shown here at a hearing in March, claims many of the provisions in Dodd-Frank have hurt the economy.

House Financial Services Committee Chairman Jeb Hensarling

http://www.npr.org/sections/thetwo-way/2016/06/07/481126195/influential-gop-congressman-wants-to-replace-key-bank-regulations

The influential head of the House Financial Services Committee wants to do away with most of the Wall Street regulations passed by Congress in the wake of the 2008 financial crisis.

Rep. Jeb Hensarling, R-Texas, would allow banks that keep more capital on their books than they currently do to be exempt from most of the new rules. The change would include the Democrats’ signature legislation, the Dodd-Frank Act.

“Simply put, Dodd-Frank has failed. It’s time for a new legislative paradigm in banking and capital markets. It’s time to offer all Americans opportunities to raise their standards of living and achieve financial independence,” Hensarling said in prepared remarks to the Economic Club of New York.

The proposals are something of a long shot, as long as Democrats control the White House. Even if Donald Trump is elected president in November, Democrats in the Senate are likely to filibuster any attempt to repeal Dodd-Frank.

Still, by proposing the new rules and meeting with Trump in New York to discuss them, Hensarling is planting a flag on the regulatory battlefield in a way that could intensify the bitter political debates already raging this year.

Trump has repeatedly called for doing away with Dodd-Frank, but hasn’t said what he would replace it with. Democrat Bernie Sanders has complained that Dodd-Frank didn’t go far enough and has often advocated breaking up the biggest banks, while Hillary Clinton wants to retain the legislation but expand some of its powers.

In his remarks, Hensarling made clear he sees Dodd-Frank largely as a disaster, claiming it has reduced liquidity in the bond market, stifled entrepreneurship and hurt overall economic growth.

“Instead of lifting our economy as Dodd-Frank’s supporters claimed it would, it has made us less prosperous,” he said.

The legislation proposed by Hensarling, which will be introduced in the House later this month, takes aim at some of the most important parts of Dodd-Frank.

They include the Financial Stability Oversight Council, a team of regulators empowered to designate banks as “too big to fail” and then assert control over them when they are in trouble.

Hensarling notes that “this ‘super-group’ of regulators can exert ultimate functional control over almost any large financial firm in our economy, and do so with utter disregard for due process. This is not the rule of law; it is the rule of rulers, and it’s an anathema to a free and democratic society.”

https://en.wikipedia.org/wiki/Jeb_Hensarling

———-

“Hensarling notes that “this ‘super-group’ of regulators can exert ultimate functional control over almost any large financial firm in our economy, and do so with utter disregard for due process. This is not the rule of law; it is the rule of rulers, and it’s an anathema to a free and democratic society.”

probably right on this point..but:

“Rep. Jeb Hensarling, R-Texas, would allow banks that keep more capital on their books than they currently do to be exempt from most of the new rules.”

add some pixels to the bottom line and do away with regulations..looks like a recipe for disaster..

401

~ by seeker401 on June 14, 2016.

2 Responses to “Influential GOP congressman wants to replace key bank regulations”

  1. EBT card systems have been downnnnn…

  2. While he’s correct that Dodd-Frank is useless, Jeb Hensarling asserts:

    “Hensarling made clear he sees Dodd-Frank largely as a disaster, claiming it has reduced liquidity in the bond market, stifled entrepreneurship and hurt overall economic growth.”

    “it has reduced liquidity in the bond market”
    Nooo…that’s due to bonds being currently worthless and paying FAR below inflation rates.

    “stifled entrepreneurship”
    Nooo…that is because there are few well-heeled consumers or investors to buy or back any new product or service you might come up with.

    “hurt overall economic growth”
    Nooo…that has occurred because outsourcing and the lack of balanced trade has utterly wrecked jobs in the two most dynamic markets the world has ever seen, the U.S. & Europe. Unemployed & underemployed people buy very little, as is evidenced in slave-wage countries whose industries are completely dependent on exports.

    Notice that Jeb wants to get rid of Dodd-Frank (who cares?) but does not even suggest a return to Glass-Steagall, which was a truly helpful set of regulations that separated the mortgage banks from the casino-Wall-Street banks? A regulatory bill that almost everyone in the country wants back?

    Oh, and to any Texans out there…Jeb Hensarling clearly works for the globalist banking cartel, and NOT for you. Kick him out.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: