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House votes to roll back post-2008 financial rules

19 June 2017

Dubbed the Financial CHOICE Act and sponsored by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, pundits say the legislation is nonetheless unlikely to move forward in the Senate, despite Thursday's high-profile vote.

"Today's passage of the Financial CHOICE Act is a bad decision by the House of Representatives", left-leaning think tank Economic Policy Institute said of the vote.

"This legislation would put an end to the disastrous, overreaching Dodd-Frank law that did nothing to end "too big to fail" and devastated our community bankers in the process", Comer said.

The legislation also repeals Dodd-Frank's Durbin amendment, which places limits on debit card processing fees, and the Volcker Rule, which bans banks from speculatively investing borrowed money in ways proven not to benefit customers, among other cuts to provisions specifically created to protect the average Jill.

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According to a Congressional Budget Office analysis, the legislation would lower the deficit by $24.1 billion over a decade.

"Dodd-Frank represents the greatest regulatory burden on our economy, more so than all the other Obama-era regulations combined", Hensarling told reporters Wednesday.

Claudia Tenney of NY, a member of the House Financial Services Committee, said while Dodd-Frank was created to prevent another too big to fail situation, it has exasperated the problem.

Supporters of the bill argue that these regulations restrict American business and commerce, and that loosening them up will lead to economic prosperity.

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This is published unedited from the IANS feed. Also, the American Bankers Association expressed disappointment that the bill had retained Dodd-Frank limits on debit card fees. This bill is good for the economy, provides much-needed relief to small businesses, and empowers individuals to make decisions about their financial future.

The vote was along party lines except for one Republican, Rep. Walter Jones of North Carolina, who voted against the bill.

The Financial Choice Act would also repeal the Volcker Rule, which forbids banks from making certain types of bets on investments. The consolidation trend, however, far precedes Dodd-Frank.

The Democrat described his own experience working with banks and said the bill favors the interests of politicians. Graves opposed the bank bailouts after the 2007-08 financial crisis, while also voting against allowing the federal government to bail out the auto industry.

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House votes to roll back post-2008 financial rules