House Democrats pulled together Wednesday to defeat a package of bills being considered on the House floor designed to water down the Dodd-Frank Act.
The House was set to consider the eleven-bill legislative package, H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act, which Rep. Maxine Waters, R-Calif., said was within the purview of the Financial Services Committee, but has been brought to the House floor “without regard for due process or the opportunity for robust debate.”
Needing the support of two-thirds of the House to pass, Democrats defeated the package by a vote of 276-146.
“I am very pleased that House Democrats joined together to successfully fight against this Republican effort, a strong rebuke to their strategy of moving controversial legislation in the dead of night,” Waters said in a Wednesday afternoon statement. “I find it remarkable that just a few hours after gaveling Congress into session, Republicans eagerly brought such a complicated set of bills to the floor – well before any new members had a chance to study these issues or participate in hearings on them.”
Waters said that 10 of the bills were authored by Republican members of the committee, and that some of the provisions in the legislation were passed previously as standalone measures (in the committee and, in some instances, on the House floor).
Other more controversial provisions, however, such as an additional two-year delay of a portion of Dodd-Frank’s Volcker Rule (which prohibits deposit-taking, loan-making banks from engaging in speculative activity), necessitated further deliberation, she said. “As such, members should be afforded the opportunity to offer amendments and have a full and fair debate on these bills,” Waters said.
Waters noted Republicans’ victory last month of inserting language into the CRominbus spending bill to roll back a portion of Dodd-Frank known as the “swaps push-out” provision. “This is a strategy pushed by Republicans to move controversial, deregulatory bills by packaging them with more reasonable legislation,” Waters said.
The Volcker Rule delay that was included in the package would have been particularly harmful, Waters said, giving “megabanks another two years to sell off collateralized loan obligations, which directly benefits big Wall Street banks like Citigroup and JPMorgan.”
This particular proposal, she noted, which was only released publicly yesterday, “comes on top of a recently announced two-year delay by the Fed.”
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