WASHINGTON — The U.S. House of Representatives voted Thursday to eliminate parts of the financial reform legislation passed following the 2008 economic crisis.
The Financial Choice Act of 2017 would remove provisions of the 2010 Dodd-Frank Act, This including the Volcker Rule, which prohibits banks from making certain speculative investments. It would also eliminate orderly liquidation authority, a process that allows the Federal Deposit Insurance Corporation to carry out related procedures for a failing financial institution.
In addition, the Consumer Financial Protection Bureau would be converted into a consumer law enforcement agency, curbing designated powers from the 2010 law. The bureau was designed to oversee banks, regulate consumer financial good markets and track complaints.
According to the Congressional Budget Office, the Financial Choice Act would reduce the federal deficit by $24.1 billion between 2017 and 2027.
West Virginia’s representatives — David McKinley, Alex Mooney and Evan Jenkins — voted for the legislation, joining most Republicans. The final vote was 233-186.
All voting Democrats were against the bill, as was Rep. Walter Jones, R-N.C.
“While the intentions behind Dodd-Frank may have been good, the heaviest burdens of its expansive regulations and rules fell on Main Street, not big banks on Wall Street,” McKinley said in a statement. “Small businesses eager to expand can’t get credit and first-time homebuyers are denied access to affordable mortgages.”
McKinley added the act would prevent taxpayers from paying for bank bailouts and the Consumer Financial Protection Bureau would be more accountable in protecting consumers.
“As I held roundtables across West Virginia, I heard from small business owners and job creators that Obama-era regulations make it harder for community banks to make loans to small businesses,” Mooney said.
Mooney also said the regulations make it more difficult for families to get home mortgages.