Newly announced Trump administration plans to weaken or eliminate many financial-industry regulations enacted after the 2008 financial crisis mark the opening shot in what consumer groups predict will be a long Washington siege.
USA Today reports the Treasury Department has issued a more detailed blueprint of proposed changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The list ranged from restructuring and weakening the Consumer Financial Protection Bureau to reexamining Wall Street trading and mortgage rules.
Consumer advocates oppose the proposal. They say it represents an unwarranted weakening of rules that have helped many Americans complaining of financial mistreatment while also reining in risky bank practices.
The major changes won’t come soon, if at all, because eliminating federal laws or Washington agency rules can take years, the advocates say.
“The prospects for preventing the rollback of many of these rules are actually quite good,” says Dennis Kelleher, the president and CEO of Better Markets, a Washington, D.C.-based nonprofit group that promotes the U.S. public’s interests in financial markets.
Lobbying for and against the rollbacks will likely spread across multiple fronts. Nowhere are the disagreements hotter than over the fate of the Consumer Financial Protection Bureau.
Echoing complaints from Congressional Republicans, the Treasury Department says the CFPB’s leadership—a lone director only loosely accountable to the president and wielding authority to enforce 18 federal financial laws—has made the agency “unaccountable to the American people.”
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