This week Senator Pat Toomey (R-Penn.) called on the Senate to begin reforming the Dodd-Frank Act through a legislative procedure known as reconciliation. Senator Toomey’s call to rein in Dodd-Frank through reconciliation is a positive step toward protecting taxpayers, consumers, and U.S. businesses from the crushing and burdensome tangle of regulations that is Dodd-Frank.
Speaking on the Senate floor, Senator Toomey stated:
“For too long now we’ve been putting up with a Dodd-Frank bill that is costing us a lot of economic growth and opportunity. I am hoping our Democratic colleagues will work with us so that we can begin to make the constructive changes that we need. But if not, I think we should use all tools available to get this job done.”
One of tools available that Senator Toomey suggested is a process known as reconciliation. By using the reconciliation process, lawmakers could make legislative changes to the Dodd-Frank Act with a simple majority in the Senate. Since Senate Republicans will occupy 52 seats in the Upper Chamber next year, this would allow them to make changes to the law and prevent Senate Democrats from filibustering those efforts.
Senator Toomey has also made it clear one of the first targets of reform will be the Consumer Financial Protection Bureau (CFPB), an independent agency created by the Dodd-Frank Act. Created less than six years ago, the CFPB has developed into a regulatory monster issuing nearly 50 rules at a rate 3.5 times faster than any other government agency.
The CFPB is currently not subject to the Congressional appropriations process, and “their funding makes them completely unaccountable to anyone other than themselves,” Senator Toomey said.
His fellow Republican colleagues in the Senate echoed the sentiments expressed by Toomey this week regarding Dodd-Frank reforms. Chairman of the Senate Baking Committee Richard Shelby (R-Alaska) stated Wednesday, “I’d like to repeal the whole thing, period.”
Dodd-Frank reforms are also receiving increased attention on the House side as well. House Financial Services Committee Chairman Jeb Hensarling (R-Texas) this year introduced the Financial CHOICE Act to overhaul Dodd-Frank, an effort that will see a reenergized push in 2017 with Republicans controlling both the legislative and executive branches.
Photo credit: Gage Skidmore