Too big to fail just failed big time - let's hope the Senate passes this. From Investor's Business Daily:
While No One Was Looking, Congress Took A Huge Step Toward Fixing The Economy
Former FBI director James Comey's testimony before the Senate Intelligence Committee was the fixation of Washington on Thursday. But the big story was on the House side of Congress, which passed a bill to repeal the ruinous Dodd-Frank banking law.
The Financial Choice Act, approved in the House by a 233-to-186 vote (no Democrats voted for the bill), has generated almost zero attention. But it has the potential to be the most economically beneficial legislation Congress will consider this year.
Put simply, Dodd-Frank has been a complete failure. Signed into law by President Obama almost seven years ago in the wake of the financial crisis, this massive law was supposed to, in his words, "be good for the economy … foster innovation … stop taxpayer bailouts once and for all."
It has lived up to zero of those promises.
Dodd-Frank's 22,000 pages of regulations, which cost $36 billion to comply with in the first six years, has choked competition in the banking industry, made banking more expensive, harmed economic growth and, to top it off, failed to make the banking system safer or end "too-big-to-fail."
Good riddance to a bad idea - they need to reinstate the 1933 Glass–Steagall Act. This was repealed in 1999 by the Gramm–Leach–Bliley Act which allowed the banks to meddle with investments and set the stage for the financial crash of 2007. Obama wasted trillions of dollars shoring up weak financial institutions and Congress passed Dodd-Frank to put a bandage over the gaping and septic wound. Covered it up without cleaning or disinfecting it.
It is very telling that Dodd-Frank is 22,000 pages and Glass-Steagall is only 53 pages (PDF).
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