As Republicans prepare to dismantle the 2010 Dodd-Frank law, the Heritage Foundation is ready to weigh in with a blueprint for financial regulation that calls for transferring the Consumer Financial Protection Bureau’s authorities to the Federal Trade Commission, according to a document reviewed by Morning Consult. The framework, which sets conservative goalposts for the Trump administration and GOP lawmakers, advocates for reducing federal deposit insurance, loosening securities disclosure rules, eliminating a key market structure rule and placing financial regulators under the congressional appropriations process. The document, co-authored by several conservative and libertarian policy experts and edited by Heritage research fellow Norbert J. Michel, praises but proposes changes to legislation proposed last year by House Financial Services Committee Chairman Jeb Hensarling (R-Texas) known as the Financial CHOICE Act. In a chapter on the CHOICE Act, the report expresses support for the measure but suggests eliminating Federal Reserve stress tests and raising and simplifying the leverage ratio to determine which banks — those holding higher capital — should be exempt from certain regulatory requirements.
