Duncan Hails Passage of Dodd-Frank Repeal
Washington, D.C. – Upon passage of H.R. 10 (Hensarling-TX), the Financial CHOICE Act, Congressman Jeff Duncan released the following statement:
“The Dodd-Frank Act was a shameless gift to Washington and Wall Street insiders against the American people. It affected every community, especially the more rural areas like the Third District of South Carolina. This backdoor attempt to nationalize the banking system contributed to the slowest economic recovery from a major recession since 1960. In a 2010 signing statement, President Obama said the goal of the Dodd-Frank Act is to “protect consumers from abusive financial services practices.” The Act fundamentally deflected the root causes of the financial crisis away from government policy and instead blamed capitalism. Though scapegoating capitalism gets cheers in the Harvard faculty lounge, it is a failure in the real world. Real people are hurt by these arrogant experiments in state sponsored economics. Since Dodd-Frank was enacted, one in five U.S. banks—1,706—has disappeared. These are your local credit unions and bankers who are accountable to the people they serve, not to Wall Street. Main Street was hurt, while cronies in the White House and Congress wrote a bill to benefit the biggest banks with the most campaign dollars. Dodd-Frank was one of the single most destructive acts ever passed in the Obama era. What is truly shameful is that it ignored the true driver of the housing bubble: the Federal government. It was the reduction of underwriting standards for residential mortgages by Fannie Mae and Freddie Mac combined with the expansion of quotas for low to moderate income mortgages that drove the markets towards subprime markets. On the eve of the crisis, 56% of all mortgages in the US—31 million—were subprime or risky mortgages. Of these, 76% were on the books of government agencies.
“But the left could never acknowledge that government policies of “helping the poor” could create such a mess. The government dug the graves for the most vulnerable, and Dodd-Frank filled them in.
“The Financial CHOICE Act of 2017, demonstrates how effective financial regulation should be enacted under law. This is for the community bankers and credit unions who keep the businesses open in my district. Though the other side tars capitalism as the enemy, I will continue to promote it as the strength. This is a win for the Third District of South Carolina.”
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