Dodd-Frank 5-Year Anniversary

As Chairman of the Financial Institutions and Consumer Credit Subcommittee, my focus continues to be on jobs and growing our economy for all. Today marks the 5-year anniversary of the Dodd-Frank Act, one of the largest job-crushing bills to come out of Washington in a long time. With over 400+ regulations and 2,000+ pages, this comprehensive bill is much like Obamacare but for our entire economy. And much like Obamacare, it has been a real failure for individuals and families across America. Instead of responsibly studying the causes of the financial crisis, Democrats in Washington rushed to regulate and threw a blanket over our entire financial sector. There have been many unintended consequences and the regulations designed for Wall Street have descended upon Main Street and Texas—stifling opportunity and economic growth.

In Texas, there are 115 fewer community banks since the implementation of Dodd-Frank. 60 percent of all business loans under $1 million are issued by community banks and credit unions, so this has had real negative consequences for all of our job creators. The Congressional Budget Office and Government Accountability Office have both estimated that Dodd-Frank has cost $3 billion to implement and will take out $27 billion from the economy. Some of the most misguided regulations have come out of the Consumer Financial Protection Bureau. While laudable in name, the CFPB continues to push out regulations that decrease consumer choice, increase the cost of credit, and decrease credit availability. Many of these problems stem from its flawed governance structure. The Bureau is run by a single director and issues regulations with little input from small businesses or those with differing views. To increase transparency and accountability, I have introduced the Financial Product Safety Commission Act of 2015 (H.R. 1266) to replace the director with a bipartisan five-person commission. This change will ensure the Bureau is better protected from the effects of shifting political winds and can focus on ensuring a robust and safe consumer finance market. Fixing a flawed law as big as Dodd-Frank will not happen overnight, but these are the kinds of changes required to better protect consumers and grow our economy.

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