Media Buzz: Committee Members Evaluate Dodd-Frank's Impact On Its Fifth Anniversary

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Cmte Financial Services (R)
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Media Buzz: Committee Members Evaluate Dodd-Frank's Impact On Its Fifth Anniversary

Washington, Jul 23 -

This month marks the fifth anniversary of the passage of the Dodd-Frank Act. This law was hastily enacted as a reaction to the financial crisis and is filled with unintended consequences and misguided policies. While Dodd-Frank supposedly targeted Wall Street, it is Main Street that has felt the brunt of its costly and overwhelming regulations.

Republican Members of the Financial Services Committee have heard from people in their districts about how the law has harmed those who did not bring about the financial crisis, yet have been wrongfully penalized. The Committee continues to work on and pass bipartisan legislation to fix, amend and repeal portions of the law that are hurting Main Street and leading to stagnant economic and job growth.

Rep. Ed Royce (R-CA): Dodd-Frank Ignored Root Cause of Financial Crisis

“Aside from enshrining too-big-to-fail, the Dodd-Frank Act ignored the root of the financial crisis by failing to address the duopoly of Fannie Mae and Freddie Mac. Five years later, the government dominates an unstable secondary mortgage market with taxpayers at risk of being tapped for a bailout should we see another downturn. The legacy of Dodd-Frank should be judged not just by what was included in it, but also what was left out of it. Policymakers owe it to the American people to wind down the GSEs before recent history repeats itself."

Reps. Randy Neugebauer (R-TX) and Roger Williams (R-TX): Reform the CFPB to Better Protect Consumers

"Our home state of Texas alone has 115 fewer community banks since the implementation of Dodd-Frank. Considering that 51% of all business loans under $1 millionnationwide are issued by local banks and credit unions, according to the Independent Community Bankers of America, the effects of this sweeping overhaul have trickled down to local job creators who had nothing to do with the financial crisis."

Rep. Bruce Poliquin (R-ME): The Dodd-Frank Act Is Hurting Maine Businesses

"Our community banks and credit unions are the backbone of our economy. They want to be able to lend money to Mainers who are interested in purchasing a new truck or putting a new engine on a lobster boat but they are unable to because of Dodd-Frank’s net of regulations."

Rep. Dennis Ross (R-FL) : Dodd-Frank:‭ ‬Another Empty Promise

"There are now fewer local banks and credit unions serving the needs of small-businesses and families in our communities than before Dodd-Frank was signed into law.‭ ‬These‭ ‬community banks and credit unions did not cause the financial crisis,‭ ‬but they are suffering under‭ ‬the weight of Dodd-Frank’s compliance costs,‭ ‬which are eventually paid by consumers."

Rep. Tom Emmer (R-MN): Five years of Dodd-Frank, Five years of Failure

"I wish I could say this is an isolated occurrence, but a recent study shows that Dodd-Frank has added 61 million hours of paperwork and more than $24 billion in final rule costs for the financial industry in this country. Nationwide, we have lost approximately 1,500 community banks already. The five years since Dodd-Frank was signed into law have been marked with five years of failure."

Rep. French Hill (R-AR): Five Years of Dodd-Frank: Are We Better Off?

“Hardworking people throughout Arkansas and the rest of the country were sold a bill of goods on Dodd-Frank, and instead of addressing the true cause of the crisis—misguided housing policy— the law has only increased burdensome regulation and restricted Main Street’s access to much-needed credit and capital."

Rep. Robert Hurt (R-VA): A failing law: Dodd-Frank leaves taxpayers, consumers in the cold

"Likewise, in the aftermath of Dodd-Frank, the American consumer is now faced with fewer choices, higher costs and more paperwork when seeking to get a loan or purchase other financial products. The effects on the American consumer are felt as a consequence of the fact that this massive new regulatory structure has resulted in significant consolidation in the marketplace — leaving only the larger institutions and leaving fewer institutions in the marketplace to compete for the business of the American consumer."

Rep. Patrick McHenry (R-NC): 5 years on, consumers still paying price for Dodd-Frank

"These overwhelming compliance costs pose a challenge to any bank, but they are especially punishing to the community banks and credit unions that serve my constituents in rural Western North Carolina. Many of these banks have not survived this regulatory onslaught. Since June 2012, nearly 20 percent of N.C. banks have been forced to close or merge with other institutions because of Dodd-Frank."

Rep. Scott Garrett (R-NJ): Garrett Statement on Fifth Anniversary of Dodd-Frank

“Five years ago today, the Dodd-Frank Act was signed into law amidst promises that the legislation would protect American consumers, make our economy more competitive, and end ‘too big to fail.’ Instead, Dodd-Frank has stifled economic growth, made it more difficult for Main Street businesses to obtain credit, and increased the likelihood that taxpayers will be on the hook for additional Wall Street bailouts. Most importantly, this law has and has made it harder for Americans to find a job, buy a home, and save money for their family’s future."

Rep. Lynn Westmoreland (R-GA): Five Year Anniversary of Dodd-Frank

"Although it was created with the intention of focusing on federal banking, community banks have been hit the hardest. On average, the country is losing at least one community bank or credit union a day. In order to repair the damage from the 2008 crisis, Georgia’s community banks need less government interference and opportunities to grow– however, Dodd-Frank has done nothing but crush those opportunities."