The House voted 271-154 Wednesday for a bill to delay a controversial part of the 2010 Dodd-Frank Wall Street reform law enacted in the wake of the financial meltdown that brought on the Great Recession.
From The Hill:
The bill, which the White House is threatening to veto, would delay implementation of Dodd-Frank’s “Volcker rule” until 2019, rather than 2017 as originally planned.
The Volcker Rule, named after former Federal Reserve Chairman Paul Volcker, requires big banks to sell-off financial investments known as collateralized loan obligations (CLOs).
Supporters of H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act, say CLOs are an important way for businesses to get financing.
“Excess regulations hurt jobs and put added costs on our economy. The number of regulations that have piled up over the past six years are compounding and holding back Main Street businesses,” said House Majority Leader Kevin McCarthy, R-Bakersfield.
McCarthy thanked Rep. Mike Fitzpatrick, R-PA, for carrying a bill that will “reduce red tape and makes it easier for small businesses to access the capital they need to grow and create good-paying jobs.”
“These provisions have enjoyed overwhelming bipartisan support in the past, so I am disappointed that a fracture in the Democratic Caucus is causing so many Democrats to switch their votes in a zealous defense of Dodd-Frank regulations,” McCarthy added.
But the bill’s opponents, including the entire Bay Area delegation, say the Volcker Rule keeps large banks from risky gambling with taxpayer-backed funds.
“The American people expect – and deserve – a government that works for them,” said House Minority Leader Nancy Pelosi, D-San Francisco, yet Republicans so far haven’t offered any bills to advance the middle class’ interests. “Instead, day after day, Republicans have rushed through giveaways to big banks and to their special interest friends.”
The Volcker Rule “protects Americans against the risky practices of some on Wall Street that just a few years ago brought our country to the brink of economic collapse,” Pelosi said. “Enough is enough: the interests of big banks should not trump those of American families that still struggle to make ends meet.”