Gut FinReg Too

November 15, 2010 07:02

Republicans ought to go through Frank’s monstrosity, page by page, and strip out all its jobs-killing and capital-killing provisions — along with the new race-based mandates Democrat Rep. Maxine Waters stuck in. Such politically mandated lending is what got us into this mess in the first place.

IBD Editorials


Indeed, the massive red tape generated by Dodd-Frank threatens to strangle the banking industry, choking the flow of credit for years to come. A new report by the American Bankers Association warns the coming “tsunami of regulations” could wipe out hundreds of smaller banks.

The regulatory burden imposed on these shaky banks could spell disaster. Dodd-Frank has already generated 5,000 pages of new rules from just three of its 16 titles. Looking at this tidal wave of new regulations, bank boards must reassess whether they should continue operating independently.

But the Americans didn’t bargain for 1,000 fewer banks. Or a Consumer Financial Protection Bureau headed by Harvard radical Elizabeth Warren, who wants to cap interest rates and nationalize banks.

The historic record clearly shows that Wall Street merely helped inflate a housing bubble caused by government social policy designed to boost minority homeownership.

Since FinReg was aimed at the wrong target — and completely misses Fannie and Freddie and the affordable housing policies that drove them into the subprime securities market — it deserves to be dismantled.


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