AFR Statement: Treasury Report Pushes Rollbacks for Wall Street and Predatory Lenders

Carter Dougherty
(202) 869-0397

Statements on Treasury report on financial regulation:

“The financial crisis had devastating costs for families and communities, and everyday abuses in financial markets cost people tens of billions of dollars a year,” said Lisa Donner, executive director of Americans for Financial Reform. “Financial reform has made the system safer, and the CFPB is returning billions of dollars to consumers facing industry tricks and traps. There is compelling evidence that it is helping, not hurting real people across the country.”

“Treasury proposal advances ideas that have been pushed by industry lobbyists since Dodd-Frank was passed,” Donner said. “We need more effective regulation and enforcement, not rollbacks driven by Wall Street and predatory lenders.”

“The Trump administration’s proposal would eviscerate the Consumer Financial Protection Bureau by ending its regular supervisory examinations of banks, mortgage companies, and payday lenders, and scaling back its power to stop banks and other financial firms from lying to their customers,” said Brian Simmonds Marshall, policy counsel at AFR. “Under this plan, the president could run run roughshod over the agency, and would open its funding to annual attacks by its opponents.”

“The proposal subjects key systemic risk protections ranging from the Volcker Rule to capital protections to a death by a thousand cuts,” said Marcus Stanley, policy director at AFR. “Since most of these changes can be made by administrative action, the Trump administration could unilaterally introduce major additional risks to our financial system.”