WASHINGTON–While President Trump and GOP members of Congress have promised a quick dismantling of the Dodd-Frank Act, one analysis notes it may take longer than many expect.
Bloomberg noted that pledges to take down Dodd-Frank have run into the same challenges as similar pledges related to the Affordable Care Act: The Republican majority in Congress can’t decide how to make it happen and Democrats are vowing to fight.
While there have been a flurry of executive orders that largely promise action in the future, Bloomberg’s analysis said Republicans in Congress “aren’t close yet.” Moreover, even if new rules are put in place, regulations following through on those rules can take years.
“Trump hasn’t said how long it’ll take to eliminate or water down Dodd-Frank, and even the White House is tacitly acknowledging that change will come slowly, allowing for a 120-day review period in the executive order before making changes,” Bloomberg said.
On Capitol Hill the fight against Dodd-Frank is being led by House Financial Services Chairman Jeb Hensarling (R-TX), who has reintroduced his Financial Choice Act, which has the backing of credit unions.
“Even if Hensarling gets the bulk of his bill through the House, it won’t receive significant consideration when it reaches the Senate, according to Ed Mills, a financial policy analyst at FBR Capital Markets, told Bloomberg. Hensarling has acknowledged there are hurdles.
“The House will probably move a little quicker and probably move a little bolder,” Hensarling said in an interview with Bloomberg Television. “At some point, we will go and deal with whatever the Senate work product will be.”
Bloomberg added that the new Senate Banking chairman, Mike Crapo of Idaho, hasn’t yet outlined his own plan, “but the Republican prides himself as a dealmaker and wants to work with Democrats. He said he is collaborating with the administration, House and members on the committee to devise a plan.”
Bloomberg also said a senior Democratic aide had commented that any bill gutting or repealing Dodd-Frank would unite the party and cast doubt on Trump’s promises to rein in Wall Street.