House Speaker Paul Ryan's big policy-making binge to try to make people forget that Republicans have settled on Donald Trump continued apace this week. That included a proposal from Texas Rep. Jeb Hensarling, chairman of the House Financial Services Committee, to dismantle Dodd-Frank—and most of the important financial reforms it encompassed.
Key provisions would reduce the power of the new Consumer Financial Protection Bureau and allow banks to avoid stricter oversight by increasing the amount of capital they hold.That sounds smart! Banks don't need no stinking oversight, amirite? If you smell the interference of Wall Street in Hensarling's big plan, you've got a very good nose.
Simply put, Dodd-Frank is cutting into the bottom line of the financial services industry and Hensarling is coming to its rescue. By July 2015, the CFPB (which again, was created by Dodd-Frank) had returned more than $10.8 billion to more than 25 million Americans harmed by illegal practices of the financial industry.
It is no surprise that Rep. Hensarling would announce his intentions to gut Dodd-Frank; he has received nearly $5.5 million in campaign contributions from key financial industry interests since 2010. Furthermore, as this report details, Hensarling’s House Financial Services Committee has become a revolving door with numerous members of his staff either coming from, or leaving to work in, the financial industry.It goes way beyond the frankly astonishing $5.5 million the financial industry has invested in Hensarling himself.