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House Financial Services Committee OKs bills repealing Dodd-Frank bailout

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House Financial Services Committee OKs bills repealing Dodd-Frank bailout

The House Financial Services Committee green-lighted bills designedto put a budget on Consumer Financial Protection Bureau spending and repeal bailoutprovisions in the Dodd-Frank Act, according to an April 13 news release.

Representative Lynn Westmoreland, R-Ga., sponsored the bill aimedat repealing the "Orderly Liquidation Authority" the Dodd-Frank givesthe FDIC. Republicans in the House, in particular, would rather that the BankruptcyCode be used to resolve failures of complex financial institutions rather than throughthe current means provided by Dodd-Frank.

"When it comes to the resolution of these large, complexfinancial institutions, should we have bailouts or should we have bankruptcy? Ithink most people, particularly on the Republican side of the aisle, believe thereshould be bankruptcy. No sweetheart deals, no more AIG deals where foreign creditorsget 100 cents on the dollar; the bankruptcy process is far superior," CommitteeChairman Jeb Hensarling, R-Texas, stated in the release.

Rep. Andy Barr, R-Ky., sponsored the bill that provides Congressionaloversight for the CFPB, which authorizes $485.1 million for the agency.

"We should not let the CFPB write its own budget. It isa base matter of congressional oversight and of Article I authority," accordingto Hensarling.

Meanwhile, Rep. Maxine Waters, D-Calif., expressed oppositionto the bills, calling them "budget gimmicks to generate illusory savings"in a separate April 13 news release from her office.

On the repealing of Dodd-Frank's Orderly Liquidation Authority,she stated that Republicans did not offer any alternative on "too big to fail."

"Every credible expert on this topic has said that if youwant to demand that financial institutions can go through ordinary bankruptcy, youmust take proactive steps – through the Dodd-Frank living will process or otherwise– to simplify their structures and limit their interconnectedness," she furtherargued.

She also defended the CFPB, describing the agency as "nimbleand responsive" and cited the CFPB's record of returning over $11 billion tomore than 25 million consumers.