According to former Representative Barney Frank (D-Mass), the elimination of the Consumer Financial Protection Bureau (CFPB) would be “very unpopular.” Frank spoke to John Catsimatidis, of AM 970 in New York, in an interview, where Frank expressed his support of the Bureau.
Frank is one half of the namesake of Dodd-Frank, and said that the CFPB “saved consumers lots of money.” Rather than eliminate the bureau, he hopes that for legislation will be introduced to make minor changes to Dodd-Frank "that make it easier for the smaller and middle-sized banks without weakening the rules against great losses that people can't deal with."
Although small banks are having difficulties, Frank noted that people are not having a problem getting loans.
In a previous interview with DS News, Frank discussed the executive order from President Trump, which demanded an official review of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The executive order, which President Trump signed earlier this year, will direct the Treasury secretary to consult members of different regulatory agencies and the Financial Stability Oversight Council, and report back on potential changes.
Frank stated that the executive order confirmed his suspicions that Trump has no intention of maintaining strong regulatory controls over the financial industry.
"He's not worried about a repeat of 2008," Frank said. "I think this is just confirmation that he believes we shouldn't regulate the financial industry. Instead, he's going to make people in business very happy."
Frank said the executive order itself is no real threat to Dodd-Frank itself, as it only orders the Secretary of the Treasury to prepare a report.
"The executive order doesn't do anything. Literally it doesn't do anything," he said. "The reason is, he can't change the provisions of the law by executive order. These are specific statutes, I think we were very careful about adopting them. He would like to get Congress substantively to weaken the bill legislatively."
AS part of the ongoing reviews and new legislation aimed at Dodd-Frank, Senator Ted Cruz (R-Texas) and Representative John Ratcliffe (R-Texas) had introduced legislation if February to eliminate the CFPB. Additionally, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) is in the process of making legislation which would allow the president to remove the CFPB Director from his position at will.