Reality is setting in on Capitol Hill that rolling back the Dodd-Frank banking law won’t be quick or easy — even though it’s a priority for Republican President Donald Trump, who says the measure is hurting the economy, Bloomberg News reported today. The Senate Banking Committee, led by Mike Crapo, today is scheduled to consider a measure about publishing research on exchange-traded funds, and a collection of other narrow bills with bipartisan support. In the House, the Financial Services Committee will hold a hearing about flood insurance, further stalling the rollout of Chairman Jeb Hensarling’s plan to eliminate laws enacted in response to the financial crisis of 2008. Republicans, who control both chambers of Congress, don’t have a plan for rewriting financial rules that would be likely to attract support from Democrats, something that’s needed to advance most major bills in the Senate. Democrats say that the existing laws are needed to prevent another financial meltdown and protect investors. Read more.
In related news, Barclays chief executive Jes Staley told CNBC that Wall Street would benefit if Dodd-Frank were to remain in place. "We hope the G-20 continues to believe [in a level-playing field of financial regulation] such that whether it is the U.K. and the European Union negotiating or the U.K. and the U.S. we keep the free flow of capital open across national borders which benefits everybody," Staley said. The British bank is also unique among other major lenders in that it has yet to reach a settlement with the U.S. Department of Justice (DOJ) regarding the mis-selling of mortgage-backed securities back in the heat of the financial crisis. Both Credit Suisse and Deutsche Bank have settled with the DOJ though Staley stressed Barclays would only be willing to do so once a "fair" deal can be agreed upon. Read more.
