By Brandon Moseley
Alabama Politcal Reporter
Tuesday, December 8, US Senator Richard Shelby (R-Alabama) urged legislators to repeal the controversial Dodd-Frank Act.
Sen. Richard Shelby said in a statement, “More than five years ago, the 2,300 page financial overhaul known as Dodd-Frank was signed into law. Since its enactment, the negative impacts of Dodd-Frank on our regulatory structure, our financial system, and our economy have become clear. It is now time to fix what is broken.”
Sen. Shelby continued, “Our financial institutions help fuel the economic engine that drives a cycle of prosperity that is uniquely American. Towns and cities in Alabama and across the country thrive when banks and other institutions provide loans to finance home ownership, private consumption, and business development. A strong, vibrant financial system is an absolutely essential precursor to a strong and vibrant economy.”
Senator Shelby was a fierce opponent of Dodd-Frank when it passed in 2010. Then Democrats controlled both Houses of Congress and were able to move the legislation, which was supported by President Obama. Republicans had vowed to repeal the massive regulatory expansion bill which delegated authority to the Consumer Financial Protection Bureau that historically had been reserved to the United States Congress. Republicans had hoped to repeal the controversial law; but the people re-elected President Obama instead of Republican nominee Mitt Romney.
Sen. Shelby said, “Although the Obama Administration and many congressional Democrats view Dodd-Frank as untouchable, I believe that the status quo is unacceptable. That is why, as Chairman of the Senate Banking Committee, I have promoted commonsense reforms to tackle the troubles with Dodd-Frank head-on. The Financial Regulatory Improvement Act, which I authored and has been approved by the Banking Committee, provides much-needed regulatory relief for community banks and credit unions and takes steps to allow financial institutions to reduce systemic risk, among other measures.”
According to information provided by the American Bankers Association (which supports the legislation), the bill would, “Provide, to varying degrees, regulatory relief for banks of all sizes, tailor the regulatory structure for systemically important banks and begin the restructuring of the Federal Reserve System and the housing finance system – Fannie Mae and Freddie Mac. The bill does not contain provisions that would increase credit union business lending authority or otherwise provide major benefits to credit unions or the farm credit system.”
Senator Richard Shelby is the Chairman of the Senate Banking Committee.
Senator Shelby, age 81, was first elected to the US Senate in 1986 after representing the state of Alabama and his hometown of Tuscaloosa in the US House of Representatives and the Alabama legislature. Shelby is seeking a sixth term in the United States Senate in next year’s election.