A prominent Republican critic of the sweeping Dodd-Frank financial reform law says he will make sure the scores of regulations now being written do not create “a sea of bureaucratic red tape” for small businesses.
Alabama Rep. Spencer Bachus renewed his attacks on the law in one of his first public appearances since he took the gavel of the House Financial Services Committee last week. The Democratic-written law seeks to tighten regulation of U.S. banks and financial markets to prevent a repeat of the 2008 economic meltdown.
After Dodd-Frank became law in July, the Securities and Exchange Commission and other executive branch agencies began drafting regulations to police banks and financial market players. Bachus, speaking at a small business forum held by the Federal Deposit Insurance Corp., promised his committee would make sure the new federal rules are “written in a way that does not further impeded job growth by burying America’s small businesses in a sea of bureaucratic red tape.”
“Unfortunately, the new regulatory structure of Dodd-Frank will redefine the way our economic system and our financial services system operates in the future,” Bachus said, “constricting jobs and punishing Main Street businesses that did nothing to cause the crisis.”
Over the past two election cycles, Bachus, a nine-term congressman from Alabama, received more than $1.3 million in PAC money from banks, insurers and auditors. The biggest chunk came from Bank of America Corp., the nation’s largest bank holding company, which contributed at least $45,000, according to a series of Center stories profiling Bachus and other new Republican chairmen.
Since taking over the committee chairmanship from Democratic Rep. Barney Frank of Massachusetts, Bachus has revamped the panel’s website and added sections titled “What’s REALLY in Dodd-Frank?” and “What’s NOT in the Dodd-Frank?”