Rep. Jeb Hensarling (R-Texas), the chairman of the House Financial Services Committee, said on Monday that the Dodd-Frank Act is “is harmful to [the] floundering economy and in dire need of repeal.”
Hensarling’s statement came ahead of President Barack Obama’s Monday meeting with financial regulators to discuss implementation of Dodd-Frank, during which he urged regulators to finish implementing the law’s rules.
Republican critics of the legislation, which was designed to limit risks to the U.S. financial system, maintain that slow progress on the legislation is evidence that the law is flawed, The Wall Street Journal reports.
“Its regulations generally fall into two categories: those that create economic uncertainty and those that create certain economic harm,” Hensarling said. “The great tragedy and irony of the financial crisis was not that Washington regulators failed to prevent it, but instead that Washington regulations helped lead us into it. With Dodd-Frank, our economy now has 400 more Washington regulations to contend with. A meeting between the president and an army of regulators will not strengthen America’s economy. What’s needed to give Americans the healthier economy they deserve is greater personal financial opportunity, prudent capital and liquidity standards, greater transparency and market discipline.”
Federal regulators have faced challenges from lobbying groups, interagency conflicts and budget constraints in implanting the legislation. Only 38.9 percent of the required rules have been finalized, according to The Wall Street Journal.