Statement on President Trump’s Dodd-Frank Executive Order
Congressman Kevin Cramer issued the following statement today on President Trump’s Executive Order directing the Treasury Secretary and financial regulators to create a plan to revise rules created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank):
Democrats promised their Dodd-Frank legislation would end the notion of “too-big-to-fail” financial institutions with the assurance that consumers, local community banks, and credit unions would be allowed to thrive in a post-recession era. Seven years later, this 2,300-page law has done nothing to protect American taxpayers and Main Street businesses.
In fact, the opposite is true. Since the bill passed in 2010, only five new bank charters have been created. And due to economies of scale, the biggest banks have an even bigger competitive advantage over Main Street banks. The more than 400 new rules created by Dodd-Frank have created a regulatory nightmare for small businesses with total compliance costs topping more than $40 billion to date. These regulatory costs have stifled economic growth and created a landscape where only the largest banks have the lawyers to deal with agencies like the Consumer Financial Protection Bureau. What this means for our local North Dakota financial institutions is less access to credit for farmers, fewer banking services in small towns, and increased consolidation.
President Trump’s executive order is the first step in reining in the regulatory overreach impacting our small businesses. The Order directs the Treasury secretary and financial regulators to create a plan to revise many of the rules the Dodd-Frank law put in place. The next step will come when Congress votes on financial reform legislation later this year, which puts control back in the hands of our local banks and financial institutions.