Financial Reform Both Parties Can Agree On
June 20, 2017
Congressional Republicans’ latest financial reform plan may have little chance of becoming law in its entirety, but there’s one piece on which both parties should agree: providing relief for small banks and credit unions.
The sweeping legislation, known as the Financial Choice Act, is political for sure. Sponsored by Republicans eager to cut regulatory costs, it would roll back much of the Dodd-Frank Act that was adopted in response to the 2008-09 credit and economic crisis. It passed the House earlier this month without a single vote from Democrats, who are concerned that it would weaken the financial system and undermine protections for investors and consumers. Critics point to provisions that would eliminate requirements such as stress tests for large banks, defang the Consumer Financial Protection Bureau and allow financial advisers to avoid being “fiduciaries” — a label that requires them to work in their clients’ best interests.