Dodd-Frank Repeal: ‘Next Speculative Crisis Will Be Much Worse Than 2008’
SputnikNews.com
12.06.2017
The US House of Representatives has approved a bill which would undo much of the regulatory measures taken by the Obama administration following the 2008 economic crisis, scaling back or eliminating post-crisis banking rules collectively known as the Dodd-Frank Act. Speaking to Sputnik, economist Ann Lee shared her thoughts on the bill’s passage.
Passing the House Thursday in a vote split 233-186 along party lines, the Republican bill, known as the Financial Choice Act, seeks to undo significant elements of the Dodd-Frank Act, which was passed in 2010 following the 2007-2008 financial crisis. The bill will now move on to the Senate, where some Democratic support will be necessary for it to pass and make it onto the president’s desk for signature (the bill will require 60 votes, while there are only 52 Republicans in the 100 member Senate).
Republican lawmakers say the new bill is meant to ease rules and regulations on community banks, and reduce what they call bureaucratic overregulation from Washington. Democratic lawmakers, on the other hand, warn that the deregulation proposed in the bill is a gift to big banks, and could help spark another economic crisis caused by speculative lending.
Speaking to Radio Sputnik, Anne Lee, American author and commentator on global economics and finance issues, said that Dodd-Frank and the Financial Choice Act both have upsides and downsides, but added that the US economy’s problems stem much deeper than either of them is capable of tackling.
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