Friday, June 09, 2017
Billy Long: It is time to replace Dodd-Frank
Stop me if you've heard this one. A grandpa walks in a bank where he's done business for 50 years and says, "Loan my grandson $10,000 to buy his first truck and I'll guarantee the note." We've all heard that one a thousand times and the loan was always approved. That’s not the case anymore. Banks and customers operating this way have gone the way of the Edsel since the advent of Dodd-Frank.
Following the financial collapse in 2008, the Obama Administration took aim at Wall Street and big banks and signed into law the Dodd-Frank Act, which was intended to rein in risky lending choices from big banks that led to the collapse. Dodd-Frank created over 27,000 regulations, and the result is that community banks struggle to survive, big banks are bigger than ever and “too big to fail” is the law of the land.
The American people deserve better and that is why I voted in favor of the Financial CHOICE Act. This bill finally ends “too big to fail” and will make sure Wall Street and big banks are held accountable for their actions while providing regulatory relief for small banks. Taxpayers will no longer be hung out to dry when big banks make a mistake, and taxpayer-funded bailouts will be a thing of the past.
Dodd-Frank hit small banks and community banks the hardest with its excessive rules and regulations. These banks make up 77 percent of the country’s agriculture loans and over 50 percent of small business loans, so easing the burden on them is crucial. Unlike bigger banks that have the financial means to hire lawyers to navigate through all of Dodd-Frank’s red tape, small banks and community banks do not. The result is that thousands of community banks have closed since Dodd-Frank’s enactment, and small business lending has continually declined. The Financial CHOICE Act eases the regulatory burden for small banks and allows those banks to utilize their resources in areas that help their businesses grow.
Finally, the Financial CHOICE Act helps consumers. Under Dodd-Frank, consumers are still being hit with higher bank fees, higher mortgages and limited choices. Small banks and community banks continue to be strapped down with regulations, and taxpayers continue to pay for big bank bailouts. The Financial CHOICE Act increases choices, better protects consumers against fraud and allows more economic freedom.
Replacing Dodd-Frank and cleaning up the mess it has made for many Americans could not come soon enough. The Financial CHOICE Act will do just that and provide relief for many Americans. I will continue to work hard fighting burdensome “Washington” regulations and make sure that this bill is passed by the Senate and signed into law by the President.