With the election of Donald Trump as the next president, and the maintenance of control over the House and Senate, Republicans have the opportunity to repeal the Dodd-Frank law, which has given businesses headaches since implementation. The best part of the Dodd-Frank bill was a promise by the Federal Reserve and the government to end the practice of “too big to fail.” That main goal has, as of now, gone unmet, as I wrote to you about here earlier this Autumn.
But while the bill’s main goal has gone unfulfilled, a host of burdensome regulations and requirements on business have been enacted, slowing down the economy and doing seemingly little to make the financial system safer.
The Wall Street Journal reports that the president-elect’s embryonic administration is considering Congressman Jeb Hensarling for the position of Treasury Secretary. Hensarling is a vocal critic of the Dodd-Frank law and has led the fight against it in the House. His appointment would surely lead to changes in the law’s implementation and enforcement.
In these early days after any election it’s risky to make too much of rumors about who might be appointed to which cabinet position. But Hensarling would consider the position if it were offered. The Journal writes:
Mr. Hensarling’s consideration shows the strong influence Vice President-elect Mike Pence has on key decisions. Messrs. Pence and Hensarling worked closely together in the House of Representatives, and their views on many financial issues are closely aligned.
Mr. Hensarling had backed Sen. Ted Cruz (R., Texas) for president during the primary, but he later endorsed Mr. Trump and praised him for selecting Mr. Pence as his running mate.
Mr. Hensarling has been a leading critic of the U.S. Export-Import Bank, which finances U.S. exports. The Export-Import Bank’s charter lapsed for nearly five months last year after Mr. Hensarling led a campaign to block its reauthorization. The bank has been unable this year to back deals larger than $10 million because the Senate hasn’t filled vacant board positions.
Mr. Hensarling also sought to pass legislation in 2013 that would phase out government-controlled mortgage companies Fannie Mae and Freddie Mac, a key piece of unfinished business from the 2008 financial crisis the Trump administration is likely to inherit.