Published: Tue, May 09, 2017
Markets | By Erika Turner

Led Panel OKs Bill to Overhaul Dodd-Frank

Choice Act passes: While most of the attention Thursday was focused on the House's passage of the bill to repeal Obamacare, the House Financial Services Committee approved the Financial Choice Act, which would undo much of the 2010 Dodd-Frank Act.

That aspect of the rule was challenged by a House Democrat, but yesterday Republicans succeeded in maintaining it by a committee vote of 34-26 along party lines, meaning the House will vote on the Act with the clause eliminating the fiduciary rule intact.

Financial reform advocates, meanwhile, denounced the measure.

While the measure is expected to easily win approval at the committee level and in the full House, it faces a hard climb in the Senate where it would need 60 votes to become reality.

The bill would "deprive consumers and investors of any choice of their day in court when resolving serious disputes with powerful financial institutions and force them into a rigged system", said Amanda Werner, a campaign manager at AFR. Leaders of the Senate panel with jurisdiction over a Dodd-Frank overhaul have said they would like to work together to find areas of common agreement to enhance economic growth.

When the full House takes up the bill, they'll need to deal with the contentious issue of whether it should include a repeal of Dodd-Frank's Durbin Amendment, which limits how much money banks can collect from retailers when consumers swipe their debit cards.

Batting depth puts England in a good place - Bairstow
Moving well over to the leg side, Stirling followed Morgan, with the batsman forced to reshuffle and nurdle the ball away. However, on 39, he almost played to off-spinner Stirling only for the ball to touch the stumps without dislodging a bail.

The committee's top Democrat, Rep. Maxine Waters of California, said Hensarling for years has made what she described as "intrusive and aggressive demands of agencies", citing his request of more than 150,000 pages of documents from the Consumer Financial Protection Agency.

The Republican bill also goes after an agency that enforces consumer protection laws and scrutinizes the practices of virtually any business selling financial products and services. "The so-called CHOICE Act removes protections against taxpayer-funded bailouts, erodes consumer protections, and undercuts necessary tools to hold Wall Street accountable".

"The committee has passed a bill that would give Wall Street and assorted predatory lenders a free hand to abuse consumers, and investors, and would increase the likelihood of another financial crisis", said Lisa Donner, executive director of the group Americans for Financial Reform. They argued Hensarling's bill would gut consumer protections and allow banks to make risky investments that required taxpayers to come to the rescue of the nation's largest financial institutions nearly a decade earlier.

Hensarling's bill was advanced after three days of debate within his committee.

"This is one of the worst bills I've seen in my time in Congress", Waters said. House Financial Services Committee member Rep. Stephen Lynch, D-Mass., center, flanked by Rep. David Scott, D-Ga., left, and Rep. William Lacy Clay, D-Mo., speaks on Capitol Hill in Washington, Tuesday, May 2, 2017, during the committee's hearing on overhauling the nation's financial rules. Lee Zeldin, R-N.Y.

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