Ever since Dodd-Frank regulations came into being like a pair of shackles for the Main Street America seven years ago, Republicans pledged to take it down. To their view, this act is putting too much pressure on the entire financial area. Therefore, the production is at its lowest while there are fewer jobs than the American economy can actually support. Nonetheless, on Thursday, the Republican House might see their dreams come true thanks to the Financial Choice Act.
Republicans See Dodd-Frank Act as an Unnecessary Burden on the American Economy
On Thursday, the House of Representatives is going to vote on a bill that has the potential to take the Dodd-Frank Act down for good. The proposal in question is the Financial Choice Act that Republicans see as a crucial tool in accelerating economic growth in their country. Last Wednesday, Speaker Paul D. Ryan defined the Dodd-Frank regulatory legislation as a negative factor for small communities across the United States.
“The Dodd-Frank Act has had a lot of bad consequences for our economy.”
This act came into being as a series of strategies to undermine the aftermath of the 2008 financial crisis. However, this period of economic struggles is long behind Americans. Nonetheless, the legislation continues to impair the success of the world of Wall Street.
The Financial Choice Act Will Limit the Authority of the Consumer Financial Protection Bureau
Some of the changes the Financial Choice Act will make regard those financial firms that are on schedule with their liquidity and capital requirements. These units will no longer have to respect some restrictions that impair them from taking some risks. On top of that, it will also instate a novel bankruptcy code provision that acts as a replacement for the orderly liquidation authority. This method is the only way for now through which financial institutions can overcome failure.
However, probably the peak modification of the Dodd-Frank act will be that of enabling the president to gain a decision making factor in the Consumer Financial Protection Bureau. As a consequence, he will be able to fire the head of this department which would undermine the authority of this watchdog.
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