When Republicans swept into power in the House of Representatives in last fall’s election, many wondered if the power change might impact the recently signed Dodd-Frank financial overhaul legislation.
It now appears we may have an answer. The new Republican head of the House Financial Services Committee told CNBC Thursday that “we’ll go piece by piece-provision by provision” through the Dodd-Frank.
After the last election, Rep. Spencer Bachus, (R-Ala.) became the committee’s head, replacing Rep. Barney Frank (D-Mass.), for whom the bill is nicknamed. Bachus’ stance is clearly at odds with the one held by FDIC Chairman Sheila Bair, who told CNBC Thursday that Dodd-Frank created more certainty and that it was time “to move on.”
“We don’t really know what the regulation is,” countered Bachus. “It’s 2,400 pages… The regulators don’t know what it is. They have to write the rules. It will be July before we know.”
Two aspects of Dodd-Frank that Bachus intends to address are its mandate for new debit card regulations and the creation of a consumer financial protection agency.
“That is a radical new approach to government,” he told CNBC, referring to the consumer financial protection agency. “And it’s not a commission, it’s a director which doesn’t answer to the Congress for funding. It could have executive privilege because the interim director, Elizabeth Warren, is actually set up as a White House executive, so that she could actually assert executive immunity.”
Advertisement: Scroll to Continue
“Consumer protection is very important,” Bachus added. “But setting pricing and limiting choices and micromanaging businesses and products is not really the American way.”
Republicans are looking to amend the law or limit its power by cutting funding for regulatory groups. In reaction, aides say Senate Majority Whip Dick Durbin (D-Ill.) will try to use his influence on an appropriations subcommittee to stop Republicans from overhauling Dodd-Frank.
“Durbin played a pivotal role in winning some of the most important Wall Street reform debates over consumer protections, including the Consumer Financial Protection Bureau,” a senior Senate Democratic aide said, according to UPI.com.
The aspect of the legislation relating to potential modifications in debit card interchange fees is known as the Durbin Amendment after the senator.
Related Content
Debit Card Interchange Fees Plummet Under Fed’s Proposed Rules
What Does the Election Mean for the Payments Industry?
Durbin Down Under
Dealing with Durbin Briefing Room
Visa Inc. Statement Regarding the Federal Reserve’s Recommendations on the Dodd-Frank Act
NRF Says Federal Reserve Action on Debit Cards Could Lead to Discounts for Consumers
Federal Reserve Regulations Would Harm Consumers, Provide Windfall to Large Merchants
First Data Responds to Federal Reserve Board’s Proposed Rules
