The House Republicans scored a big victory on Tuesday when Congress voted 258-159 to roll back certain parts of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which never reformed Wall Street or protected consumers.
The bill will now head to President Donald Trump’s desk, and he confirmed he will sign it in the coming days.
Here are the primary changes of the bill:
- The threshold of too big to fail jumps from $50 billion to $250 billion.
- Banks that sit under the limit won’t have to perform stress tests.
- Small- and mid-sized banks won’t endure too many mortgage loan data reporting requirements.
- GOP will mandate credit agencies to offer credit report monitoring services for free.
- Banks with less than $10 billion in assets can partake in proprietary trading and be protected from mortgage legal liabilities.
Supporters say it will rejuvenate and help community lenders, neighborhood banks, and regional facilities. Opponents, however, say it will renew racial discrimination, open the door to taxpayers being held liable should banks fail, and be a gift to Wall Street.
But is this a gift to Wall Street and the big banks? Well, Dodd-Frank was a bill that was a gift to Wall Street, not Main Street.
Chris Dodd and Barney Frank all but eliminated those small banks that you’d find in “It’s a Wonderful Life” or “American Madness” because of red tape, regulations, and compliance costs. Meanwhile, consumers suffered because of rising fees, fewer services, and a reduction in loans.
Very good news. Now if they can roll back Obamacare, the government student loans and Bush prescription drug plan among other paving stones on the road to hell.
My credit had free checking accounts for over 40 years. Shortly after DF they started charging $4.95 per month. That is an extra $123,750 per month, $1,237,500 per year, for something that used to be free. I am sure this fee will never go away, no matter how much this change saves the CU, Thanks DF.