Republican leader proposes weakening Dodd-Frank, spotlights U.S. political divide

[Lodestar]

Source: Reuters

The chair of the House Financial Services Committee is proposing to wipe out much of the U.S. regulation put in place after the financial crisis with a plan expected to ignite debate in the presidential election but flame out in Washington.

Republican Representative Jeb Hensarling will present the plan in a sweeping speech at the Economic Club of New York on Tuesday, as six states hold presidential primaries.

According to his prepared remarks, Hensarling's plan would primarily weaken the 2010 Dodd-Frank Wall Street reform law. It would allow banks to choose between complying with the law or holding a much higher amount of capital. It would also throw out the Volcker Rule that restricts banks from making speculative investments and eliminate the authority of the Financial Stability Oversight Council consisting of regulatory agencies' heads to designate firms as "systemically important," also known as "too big to fail."

Read more: http://www.reuters.com/article/us-usa-congress-doddfrank-idUSKCN0YT0AK

[JustAnotherGen]

1. Nothing on section 1502?

That's not for you OP that's for Reuters. This is a trade / import point of pressure I have oversight of at work. Aside from the impacts to our Financial system - there is an entire sourcing ecosystem established to comply to this. I don't believe miners are 100% compliant - too much room to lie. But we need to at least hold manufacturers who use these products feet to the fire to ensure our electronics aren't in our hands as the result of some little kid in Africa being held at gunpoint to pull the tungsten, tin, etc etc out of the ground.

This "lack of law" is a shitty idea.

[Scuba]

2. Not to worry, I'm sure President Obama or President Hillary would veto such a bill. Right?

[TomCADem]

11. Yes, Given That Democrats Have Opposed Such Efforts and President Obama...

...has threatened to veto similar legislation in the past.

[pampango]

3. "While it could pass the Republican-controlled Congress, it would then have to be signed by

President Barack Obama, who also signed Dodd-Frank into law."

"Those on the left who gave us Dodd-Frank believe in the principle that human nature is self-destructive and that people - except themselves, of course - are fundamentally ignorant," Hensarling will say, demonstrating the political charge of his plan.

Trump, who has already sewn up the Republican nomination, also advocates for dismantling Dodd-Frank, but has given few clues to his plan. Last week Obama said Trump would let companies do "the same stuff that almost broke our economy’s back."

Meanwhile, Clinton hopes to secure enough votes on Tuesday to take the top of the Democrats' ticket. She has proposed edging farther left of Dodd-Frank to break up large banks that take excessive risk, charge institutions a "risk fee," tax high-frequency trading, and create more oversight of "shadow banking."

Sanders wants to break up the largest banks, reinstate the Depression-era Glass-Steagall law that separated commercial and investment banking, and tax some speculation.

Trump is certainly a typical republican when it comes to repealing Dodd-Frank and letting companies do "the same stuff that almost broke our economy’s back." Being pro-worker or 'to the left' of any Democrat on this is not in the cards.

[djean111]

4. This is likely one of the things Obama is trying to deflect from with his "expanding Social

Security" fluffing.

I think stuff like this, and fast tracking the TPP, are gonna slide right down the money-greased Washington DC chute into law. Signed, sealed, delivered. And then we will be told to eat our peas, or whatever the chained CPI lists as a substitute, since peas are a bit more expensive than other veggies.

[Andy823]

5. Are you always so negative?

Over the years I have seen a group here who always, and I mean always, jumps to conclusions that are not founded. They only see the negative in things, and they always went after president Obama because he was "GOING" to do this or that, but it never came to be. Life is much better when you look on the positive side instead of always on the negative. You really should try it.

[geek tragedy]

6. This is a dumb comment.

President Obama pushed hard to get Dodd-Frank passed. He doesn't want it repealed or gutted.

[rladdi]

8. The Democrats must stand stand and against any measures the GOP puts forth.

They don't have any policies to get America back on track. It total blocking and destruction of whatever Obama wants to do.

[geek tragedy]

9. It's really about 2017.

This won't pass in an election year.

And there aren't enough votes to override a veto

[TomCADem]

12. Obama: Dodd-Frank rollbacks will 'earn my veto'

Once again indulging in the myth that there is no difference between Republicans and Democrats.

http://thehill.com/policy/finance/230148-obama-dodd-frank-rollbacks-will-earn-my-veto

President Obama vowed to lawmakers Tuesday that he would veto any legislation that would roll back the Dodd-Frank financial reform law the GOP-led Congress passed.

In his State of the Union address, the president defended the 2011 law as a set of “sensible regulations” aimed at protecting the U.S. from another financial crisis.

And with Republicans now in charge of both chambers of Congress already trying to advance bills tweaking or scrapping parts of that measure, the president made clear he would do everything he could to block those efforts.

Any bills “unraveling the new rules on Wall Street” will “earn my veto,” the president said, according to prepared text released by the White House.

[rladdi]

7. This is just part of the destruction the leaders of the Republicans want to do.

They have no plans for the future America, because they are out to destroy America. Just review what Senate Leader McConnell And Speaker Ryan stands for. Blocking Obama and the future of the USA. This is the mission of the RNC and GOP. Only the smart votes in November can reverse the hijacking in DC.

[TomCADem]

10. Blatant Effort To Seek Contributions for 2016 Elections

It is not going to pass this year under President Obama, but elect a Republican Congress and President, and they will repeal Dodd-Frank.