|To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to specify when bank holding companies may be subject to certain enhanced supervision|
H.R.6390 and H.R. 6391 - To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to specify when bank holding companies may be subject to certain enhanced supervision, and for other purposes.
On November 18, 2016, Rep. Blaine Luetkemeyer (R-Mo.) put forth two legislative bills to reform the Dodd-Frank Wall Street Reform act passed in 2010 after the banking crisis in 2008.
The reform includes legislation designed to lower bank fees and make car, home, and small business loans more affordable and accessible to the middle class. Luetkemeyer has stated that higher loans and banking fees directly affects the people in his state of Missouri trying to achieve the American Dream.
Background on Dodd-Frank
Dodd-Frank was the most significant legislation passed in response to the Great Recession of 2008 and made changes to the financial regulatory system at every level. The regulations have been criticized by Republicans as being going too far and being unfair to the banking institutions, and criticized by the more liberal Democrats as not going far enough.
On the Democratic side, Senator Bernie Sanders (I-Vt.) ran on a platform calling for a break-up of the big banks using the authority of Section 121 of the Dodd-Frank Act.
Republicans, however, are looking, instead of breaking up the big banks, to dismantle the restrictions on the big banks and put forth legislation that replaces the bill.
Earlier in 2016, Financial Services Committee Chairman Jeb Hensarling (R-Tx.) introduced a plan called the Financial CHOICE act to reform and eventually replace the Dodd-Frank bill, which Luetkemeyer supports.
The plan passed the financial committee 30-26 along partisan lines.
With the election of President-elect Donald Trump, the future administration has signaled that it intends to dismantle and replace the legislation by supporting legislation put forth by Republicans like Hensarling.
Democrats are critical of the plan, saying it is a “a political talking point that does nothing to help Main Street” and party leaders are already looking to block any legislation that dismantles Dodd-Frank.
Incoming Senate Minority leader Chuck Schumer (D-Ny.) has stated that the Senate has 60 votes to block any attempt at repealing and replacing the Wall Street and banking restrictions, and that the Senate was going to fight “tooth and nail” to stop the dismantling of President Obama’s legislation like Dodd-Frank or the Affordable Care Act.
President-elect Trump has praised Schumer, tweeting his preference for the New York Senator over retiring Senator Harry Reid (D-Nv.), “I have always had a good relationship with Chuck Schumer. He is far smarter than Harry R and has the ability to get things done."
Schumer has said that Trump has called him a couple of times, but that they are “not friends.” Senate Democrats are going to have choices whether or not to work with the future President-elect Trump.
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