President Trump on Friday praised the House’s passage of a sweeping bill to strip much of the Dodd-Frank financial reform law in a celebratory tweet.
“Congratulations to [House Financial Services Committee Chairman] Jeb Hensarling [R-Texas] & Republicans on successful House vote to repeal major parts of the 2010 Dodd-Frank financial law,” Trump tweeted. “GROWTH!”
Congratulations to Jeb Hensarling & Republicans on successful House vote to repeal major parts of the 2010 Dodd-Frank financial law. GROWTH!
— Donald J. Trump (@realDonaldTrump) June 9, 2017
The House passed the Financial CHOICE Act 233-186, along party lines.
“Dodd-Frank represents the greatest imposition on our business enterprises than all Obama era regulations combined,” House Financial Services Committee Chairman Jeb Hensarling (R-Texas) said Thursday morning in a briefing with reporters. “In many respects, it was not a response to the financial crisis, but a grab bag of leftist ideas that were waiting on the shelf for quite some time.”
Democrats defended Dodd-Frank, saying the bill has held Wall Street accountable for the risky behavior that caused the 2008 financial crisis.
“It’s shameful that Republicans have voted to do the bidding of Wall Street at the expense of Main Street and our economy,” said Rep. Maxine Waters (D-Calif.), ranking Democrat on the Financial Services Committee. “They are setting the stage for Wall Street to run amok and cause another financial crisis. I urge my colleagues in the Senate not to move on this deeply harmful bill.”
The Financial CHOICE Act would roll back much of the Dodd-Frank regulations long targeted by Republicans, e.g. allowing banks that reach certain cash thresholds an off-ramp from Dodd-Frank, reducing the frequency of federal stress tests, restraining oversight powers of several federal agencies, eliminating orderly liquidation authority, and placing strict limits on the Consumer Financial Protection Bureau (CFPB).
During the 2016 campaign, Trump criticized Clinton for her Wall Street ties, promising to “drain the swamp.”
— Donald J. Trump (@realDonaldTrump) October 18, 2016
However, Trump has been the best thing to happen to big banks, putting half a dozen Goldman Sachs executives in positions of power in his administration, watering down lobbying ethics rules, weakening consumer financial protections, and accepting over $100 million dollars from corporate giants for his inauguration, while failing to disclose tens of millions of dollars worth.