WASHINGTON – U.S. Congressman Jeb Hensarling (R-TX), was in Athens today (April 8, 2016) to visit with East Texans who have been negatively impacted by the Obama Administration’s financial regulatory legislation known as the Dodd-Frank Act. Hensarling spent time at the First State Bank Athens hearing about the strain Dodd-Frank has put on the bank’s customers and their community.
“The undeniable truth is the economy still isn’t working like it could and should for East Texans. Many remain stuck in the slowest and weakest economic recovery of their lifetimes. One of the biggest reasons for this is the ‘one size fits all’ regulations found in the Obama Financial Control Law that harm consumers and suffocate their hometown banks and credit unions,” Hensarling explained. “The climate of uncertainty created by these excessive regulations are harming our economy and destroying opportunities for growth.”
One of those Americans who has firsthand knowledge of the harmful effects of the Obama Financial Control Law is local realtor Steve Grant.
“The proponents of Dodd-Frank said it would strengthen housing in our country, but the regulations that Washington imposed have only made it harder for people to purchase homes,” said Grant. “I’ve heard this message time and again from other realtors in other parts of the country, but I think it’s especially true in rural communities like ours. Owning a home is part of the American dream, and I would hope that Washington could do away with the needless regulations that only serve to make this process more difficult if not impossible.”
“Unfortunately, Steve is not alone in his experience,” said Hensarling. “Since the law was implemented, I’ve heard from countless Americans across my district and the country that are no longer able to access the financial products their families have come to rely on. The harmful consequences of the Obama Financial Control Law are all too real. Greater regulation leads to increased regulatory costs, which leads to increased bank costs, which leads to an increase in costs to the consumer.
“Credit card rates have risen drastically, making them unaffordable and unavailable for many would-be borrowers; federal regulations on auto loans could hit some borrowers hard, with a nearly $600 increase in interest payments on a $25,000 loan over a four year period; small businesses are still struggling for access to credit; and the incredible regulatory burden placed on homebuyers has complicated the buying process and led to fewer community banks offering mortgages. The fact that these higher costs are taking place while paychecks and savings are stagnant is compounding the problem. The painful truth is the Washington hyper-controlled economy is failing low and moderate income Americans who simply want their fair shot at economic opportunity and financial security.
“This is why I’ve been working in my capacity as Chairman of the House Financial Services Committee to develop legislation that will bring relief to hardworking Americans weighed down by their own government. This legislation will protect consumers and allow banks to serve their needs in competitive, transparent, and innovative markets, vigorously policed for force and fraud. It will end taxpayer-funded bailouts and unleash America’s entrepreneurial potential. It will provide desperately needed regulatory relief and halt the unbridled growth of the unaccountable, arrogant bureaucracy that is dragging us towards the failed economy of a European-style social democracy. In short, it will enable banks to provide the financial resources and opportunity East Texans need to achieve their version of the American dream,” Hensarling concluded.