The House Financial Services Committee wants to mark the fourth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act by repealing some provisions.
A committee staff report released Monday said the 2010 act designed to end a policy of too-big-to-fail “had the opposite effect.”
“Dodd-Frank actually enshrines 'too big to fail' into law,” said committee chair Rep. Jeb Hensarling, R-Texas, in a statement.
The authors analyzed Dodd-Frank's provisions and government bailouts following the 2008 financial crisis and found “the most egregious financial failures occurred in the highly regulated world of commercial and investment banking.” Committee hearings also raised questions about the constitutionality of the law, the report said.
Dodd-Frank “squandered” the opportunity to do things differently, the report argued, “by resorting to the same failed strategies and misplaced confidence in the power of regulations and regulators that led to the financial crisis in the first place.”
Committee Republicans plan to introduce legislation that would restrict bailout funds and address other perceived problems, including the Financial Stability Oversight Council's mandate and designation process.
The report is available from the House website.