Republican presidential candidate Jon Huntsman joined his primary opponents in calling for an end to Dodd-Frank regulations on Wall Street.
Huntsman said that the rules should either be tossed out or replaced with fees or new tax rules to prevent another financial crisis.
In a recent Wall Street journal op-ed, Huntsman highlighted the government’s role in causing the economic recession by distorting the housing market through Fannie Mae and Freddie Mac. He also blamed the government for allowing the Federal Reserve to drive excessive credit creation and for giving credit rating agencies too much power.
“That legislation ignores the government's pervasive role in causing the crisis, assures future transfers from taxpayers to bankers by institutionalizing a government backstop for 'too big to fail' firms, and imposes massive new regulations and unreasonable compliance costs on smaller banks,” Huntsman wrote, WSJ.com reports. “As a result, lending to small businesses from small banks suffers.”
Huntsman offered a few alternatives, the first of which is to eliminatee Dodd-Frank. He also encouraged Congress to explore reforms that are currently being considered by the U.K. that make the unwinding of its large banks less risky for the overall economy. Huntsman pointed to a fee on banks whose size is more than a given percentage of the GDP to make up the cost they’d impose on taxpayers if they needed government bailout money.
Huntsman’s op-ed follows calls from other Republicans presidential hopefuls to eliminate Dodd-Frank.
Michele Bachman, Mitt Romney and Newt Gingrich have all announced their opposition to the new law during their campaigns.