Dodd Frank changes a huge gimme
Yves Smith points us to additional 114th Congress changes:
How the Republican Campaign to Gut Dodd Frank is a Huge Gimmie to Banks and Private Equity Funds
The Republicans have been quick and shameless in using their control of both houses to try to crank up the financial services pork machine into overtime operation. The Democrats at least try to meter out their give-aways over time.
Their plan, as outlined in an important post by Simon Johnson, is to take apart Dodd Frank by dismantling key parts of it under the rubric of “clarifications” or “improvements” and to focus on technical issues that they believe to be over the general public’s head and therefore unlikely to attract interest, much the less ire. However, as Elizabeth Warren demonstrated in the fight last month over the so-called swaps pushout rule, it is possible to reduce many of these issues to their essential element, which is that Wall Street is getting yet another subsidy or back-door bailout.
Today’s example is HR 37, with the Orwellian label “Promoting Job Creation and Reducing Small Business Burdens Act”.
House leaders put this hastily arranged bill, HR 37, onto the floor on one day’s notice, without going through the financial services committee or giving members the opportunity for amendment. They wanted a quick, quiet passage on the second day of the session, teeing it up for the new Republican majority in the Senate to tackle.
Spoiler: the bill failed. But it was a close call,