Washington, D.C. — Today, the U.S. House of Representatives passed the so-called Economic Growth, Regulatory Relief, and Consumer Protection Act—sending the bill to President Donald Trump’s desk. Marc Jarsulic, vice president of economic policy at the Center for American Progress and former chief economist for the U.S. Senate Committee on Banking, Housing, and Urban Affairs, released the following statement:
Just 10 years after the 2007-2008 financial crisis, Congress has rolled back post-crisis safeguards for the largest banks in the country. These legislative changes are part of the continuing effort by the Trump administration, congressional Republicans leaders, and Trump-appointed financial regulators to deregulate Wall Street at the expense of consumers and financial stability.
Proponents claim the bill is designed to help small community banks, but the facts say otherwise. This legislation deregulates 25 of the largest 38 banks in the U.S.—banks that account for one-sixth of the assets in the entire banking sector and received $47 billion in Troubled Asset Relief Program (TARP) bailout funds during the financial crisis. The bill also chips away at rules for even the most systemically important banks on Wall Street. The legislation undermines important protections for homeowners and dials back Home Mortgage Disclosure Act reporting, putting vulnerable communities at risk and making it more difficult for regulators to spot future housing discrimination.
This legislation increases the likelihood that taxpayers will once again have to foot the bill when risks in the banking sector come crashing down. Conservative policymakers may be experiencing collective amnesia, but working families across the country haven’t forgotten the lost jobs, wages, homes, and savings that they experienced because of the financial crisis and the Great Recession it produced.
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