March 18, 2011


House GOP moving cautiously on Wall Street law rollback (Peter Schroeder, 03/16/11, The Hill)

While House Republicans wanted to pass a bill repealing healthcare reform as soon as possible, that all-or-nothing approach has not been present with Dodd-Frank. Republican lawmakers have held several hearings overseeing portions of the law, and have sent letters to federal regulators demanding answers to detailed questions about its implementation.

Rep. Michele Bachmann (R-Minn.) introduced a Dodd-Frank repeal bill in the first days of the 112th Congress, but it has thus far been largely ignored, attracting just seven co-sponsors.

The more targeted approach for Dodd-Frank is indicative of the wide variety of opinions about its provisions, as well as the complicated politics surrounding it.

Mark Calabria, the Cato Institute’s director of financial regulation studies, said a hard-charging drive to repeal Dodd-Frank might be absent because lawmakers have not heard from their constituents about it.

While members of Congress famously heard from raucous crowds back home during debate over the healthcare reform law, “there’s not the same sort of visceral reaction” to Dodd-Frank, he said.

In addition, Wall Street banks are still largely out of public favor after driving the 2008 financial crisis, and any broad repeal effort could be painted negatively for Republicans.

“Republicans have to balance that perception that repealing it just makes them look like they’re in for Wall Street,” said Calabria. “They need to be careful about how they do it, and I think that’s the reason we’re seeing it driven in this manner.”

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Posted by at March 18, 2011 7:53 PM

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