Following the 2008 bank bailouts, one of the major pieces of legislation aimed at making sure such a thing could never happen again was the 2010 Dodd-Frank Act. The 849-page Act introduced 27,000 new regulations on the financial sector. (RELATED: Trump Issued 400% Fewer Major Regulations Than Obama Did In His Final Year).
As a result of those regulations, compliance costs for small banks have skyrocketed. Virtually no new banks have been chartered since Dodd-Frank was passed, and 1/5th of community banks have disappeared.
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On Tuesday the House of Representatives voted 258-159 to roll back Dodd-Frank, with 33 Democrats backing the effort.
According to the Daily Wire:
One result of the new legislation: fewer than 10 big banks in the United States will be subject to stricter federal oversight; thousands of banks with less than $250 billion in assets will not be considered systemically important to the financial system. Thus only banks with $250 billion or more will be subject to more regulations, including the Federal Reserve’s annual stress tests.
House Speaker Paul Ryan said the bill would lead to “freeing our economy from overregulation … Our smaller banks are engines of growth. By lending to small businesses and offering banking services for consumers, these institutions are and will remain vital for millions of Americans who participate in our economy.” Before Dodd-Frank, 75% of banks offered free checking. Two years after it passed, only 39% did so … Bank fees have also increased due to Dodd-Frank, leading to a rise of the unbanked and underbanked among low- and moderate-income Americans.
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Prior to the House approving the legislation, the Senate passed it by a 67-31 vote, with 17 Democrats joining with Republicans to approve it. Some Democrats in smaller or more rural states reliant on smaller banks championed the legislation for removing a costly burden off of those community banks.
Dodd-Frank was one of the most costly regulations passed during Barack Obama’s presidency, and now like thousands of others, has been erased.
Was Dodd-Frank the worst regulation Obama signed into law? Share our thoughts with us below!
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So you really like the financial melt down that gave us the Bush Depression? Why do you want to repeat it again under Trump?
pd – Do you mean the Sub-Prime-Lending Home-Mortgage Crisis created during the Clinton years?? Everyone DESERVES to own their own home, WITH ZERO DOWN, Interest only/no principle payment, BIG BALLOON Payment….THAT was NEVER going to end well!!!!
NOW, we face a repetition — Defaulting Student loans and Sub-prime auto. The LENDERS must be held accountable ALONG with the borrowers, NO TAXPAYER BAILOUTS!!!!
Traitors don’t deserve legacies. GO TRUMP!
Dodd/Frank was a bad idea. Everyone knew that. It was the Democrats way to sneak in fascism.
Truth to be told, it was simply the Democrats protecting their rich donors, while screwing the little guy.
The use of the czar to keep a foot on the neck of industry was the Barry Sotero control solution, his use of gov agencies to intrude on privacy and circumvent law was orwellian and in keeping with the USSR…Barry was a unpoken communist looking to change(undermine) the USA, the government, the US Constitution and the rule of law…his favorite tool, mandates, exec order, fiat and illegal use of gov agency..going before the senate and congress was to tough but use of sympathetic court was just dandy…Barry the born con artist was nothing more than a manipulative political thug…..
NObama, No legacy!! Go Trump!!
I can’t think of anything that Obama the joker did was helpful to the U.S. and that includes his piles of legislation. Elect a Democrat and get taxed more and regulated more–or both in many cases. Tax and regulate are the numbers 1 & 2 in terms of priority in all Democrat playbooks.