Published June 7, 2017 by James Dennin The House of Representatives voted 233-186 on Thursday afternoon to pass the Financial Choice Act of 2017, a bill that would undo many provisions of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.
The bill — sponsored by Rep. Jeb Hensarling (R-Texas) — was touted by proponents as a way to help smaller community banks and credit unions that say they’ve struggled with regulatory controls imposed by Dodd-Frank, which was passed in the wake of the financial crisis to mitigate systemic risk and protect consumers from predatory lending.
There is a certainly a case to be made that a community bank shouldn’t have to play by the same rules as Goldman Sachs. The National Association of Federally Insured Credit Unions, for example, argues that Dodd-Frank encourages the “over-regulation of good actors.” Some 1,660 credit unions — often preferable to consumers because of lower fees and more generous interest payments — have gone out of business since the second quarter of 2010.
But experts consulted by Mic warned that a Dodd-Frank repeal could do far more harm than good for the financial system, leaving Americans without several important consumer protections and policy makers without the tools needed to confront the next crisis. Even if the Choice Act helps institutions unfairly punished by Dodd-Frank, it is tantamount to “throwing the baby out with the bath water,” said Amalgamated Bank CEO Keith Mestrich.
Other provisions in Hensarling’s bill could end up hitting Americans in the wallet. Here are three crucial ways the Dodd-Frank repeal bill could hurt yours….click here to read the full story