Just when you thought that all activity to repeal Dodd-Frank had been exhausted, a new wrinkle has developed. CU Times announced, although specifics aren’t available, the current plan is to repeal Dodd – Frank through the Federal budget plan. I am not aware how this could be accomplished, but certainly funding can be withheld that makes the legislation more difficult to enact. This could include pulling back funding for the CFPB:
With Republicans having failed to enact major changes to Dodd-Frank so far, Sen. Ted Cruz (R-Texas) wants to attack the law through the budget process.
A Cruz aide confirmed that the senator is seeking support to “repeal” Dodd-Frank through the budget reconciliation process—a move that could keep Dodd-Frank supporters from filibustering the measure.
For planning purposes I would suggest that Dodd-Frank will be around for a long time. Using the budget process is a circuitous process:
First, the budget resolution that is being marked up by the Senate Budget Committee later this week, would have to direct the Senate Banking Committee to find a specified amount of savings. That could be changes to Dodd-Frank.
Whatever savings the committee finds and approves would be combined with savings proposals from other committees into a large budget reconciliation bill. That bill also could be the vehicle for tax reform legislation.
Even then, any Dodd-Frank changes could be subject to a point of order on the Senate floor if it does not conform to budget rules.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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