Maxine Waters Denounces Wall Street Deregulation Plan Introduced by Jeb Hensarling’s
Congresswoman Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, denounced Chairman Jeb Hensarling’s proposal to weaken our country’s financial and consumer protections:
“Today, just steps from Wall Street, Chairman Hensarling unveiled a special interest wish list that would deregulate the financial sector to the detriment of consumers and investors. In the six years since Democrats saved our economy from the worst financial crisis since the Great Depression, Republicans have been clear about their intent to dismantle the historic protections we put in place under the Dodd-Frank Act. They seem to forget about the trillions of dollars of wealth that were stripped from American families and they refuse to acknowledge that the crisis was caused by reckless behavior on Wall Street and a wholly inadequate regulatory regime. That’s why most Americans favor robust financial regulation. They know that Wall Street Reform has made our financial system safer, fairer, and stronger.
“From hobbling the Consumer Financial Protection Bureau – an agency that’s returned nearly $12 billion to 25 million consumers in just five short years – to undoing regulators’ ability to rein-in non-bank actors like AIG, to bringing back the same type of speculative trading that led to the crisis, to repealing Dodd-Frank’s mechanism to unwind large banks without harming taxpayers, this package is a gift to nearly every special interest that the Financial Services Committee oversees. While the plan purports to get tough on bank crime, it gives Wall Street a ‘get out of jail free’ card by including legislation that would gut law enforcement’s ability to prosecute financial fraud. It takes a step in the right direction by requiring higher capital ratios at the largest banks, but immediately takes two steps backward by eliminating any oversight of the riskiest activities at banks and non-banks by dismantling the Financial Stability Oversight Council and subjecting bank regulators to the appropriations process. And it takes yet another shot at the Labor Department’s much-needed conflict of interest rule, threatening Americans’ hard-earned retirement savings.
Some more insight from @DSNewsDaily
On Tuesday, Rep. Jeb Hensarling (R-Texas), Chairman of the House Financial Services Committee, introduced a comprehensive plan to overhaul the Dodd-Frank Wall Street Reform Act called the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act. Hensarling’s proposal includes a complete overhaul of the CFPB which includes changing its name to the Consumer Financial Opportunity Commission (CFOC) and task it with the dual mission of consumer protection and competitive markets, with a cost-benefit analysis of rules performed by an Office of Economic Analysis (similar to Emmer’s proposal).
The Financial CHOICE Act also includes a proposal to replace the CFPB’s single director with a bipartisan, five-member commission, and appoint a Senate-confirmed independent inspector general for the Bureau.
“But the Bureau operates as legislature cop on the beat, prosecutor, judge and jury all rolled into one. Fines imposed in such an abusive structure tell us nothing about justice or consumer welfare. Nothing.”
CFPB to CFOC, because “Opportunity” is better than “Protection” for Wall Street.
Copy of the Dodd-Frank Wall Street Reform Act below…
Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act