Republicans Look to Scrap Huge Pieces of Dodd Frank Reform

The latest proposed budget by the Republicans, the intent is to cut out central aspects of the Dodd Frank Reform. This would include putting some badly needed oversight over the hated Consumer Financial Protection Bureau (CFPB). Another aspect that Republicans will push to eliminate under the Dodd Frank reform is the government’s ability to step in and rescue financial institutions that are about to implode.

Under the current reform, the FDIC can borrower taxpayer monies to rescue a bank or other financial institution that is in trouble. Republicans claim that this policy creates a sort of moral hazard rather then solving the bailout problem.

With absolutely no oversight, the CFPB, has been able to wreak havoc. It currently faces charges of discrimination by former employees who also claim the bureau has no accountability.

Posted by Corey Curwick Dutton, Commercial Bridge Lender