January 07, 2011

Congresswoman Michele Bachmann, a Republican from Minnesota, has introduced legislation, H.R. 87, to repeal the Dodd-Frank Wall Street Reform and Consumer Protection Act. "Dodd-Frank grossly expanded the federal government beyond its jurisdictional boundaries," Bachmann said in a statement. "It gave Washington bureaucrats the power to interpret and enforce the legislation with little oversight. Dodd-Frank also failed to address the taxpayer-funded liabilities of Fannie Mae and Freddie Mac. Real financial regulatory reform must deal with these lenders who were a leading cause of our economic recession. True reform must also end the bailout mindset that was perpetuated by the last Congress. I am proud to work towards repeal of Dodd-Frank because Congress must protect the taxpayers, instead of handing out favors to Wall Street."

Bachmann's bill has been endorsed by four other Republican Congressmen: Darrell Issa, Todd Akin, Tom McClintock and Bill Posey.

Barney Frank, co-author of the Dodd-Frank bill, countered in a statement that the repeal's sponsors "yearn to return to the thrilling days of yesteryear, so the loan arrangers can ride again -- untrammeled by any rules restraining irresponsibility, excess, deception, and most of all, infinite leverage."

But Bachmann argued in a letter to Congressmen seeking support, "It is plain hubris to think that this government, with its $14 trillion dollar debt, annual deficits, and wasteful spending, is worthy of this plenipotentiary oversight."

It's possible that the Republican-controlled House of Representatives could pass this repeal, which would roll back a tidal wave of new rules for banks. But in the Democrat-heavy Senate, it's hard to imagine it getting through.