McHenry condemns Dodd-Frank, its impact on consumers and CUs
Thursday, July 24, 2014
CNN.com and Washington, DC--In his Monday, July 21 CNNOpinion message, U.S. Rep. Patrick McHenry (NC-10) takes issue with the Dodd-Frank Wall Street Reform and Consumer Protection Act, noting that in attempting to bolster the financial system and prevent future crises, it has overreached yet underachieved. McHenry further recognizes it ultimately could have a negative effect on credit availability through institutions such as credit unions.
"(T)his bill was designed to improve accountability and transparency in our financial system, ensuring we never again face a financial crisis of this magnitude," McHenry writes. "Regrettably, Dodd-Frank has done little to address the root causes of this crisis."
Instead, he adds, the measure has saddled taxpayers with bailout costs, added bureaucracy, and imposed extensive compliance cost and paperwork on institutions vital to serving consumers including his 10th Congressional District constituents.
"These compliance costs can be devastating to community banks and credit unions. Often they are the only financial institutions serving small towns and rural areas such as those throughout my district in western North Carolina."
The message is the latest in favor of credit unions by McHenry, who recently wrote NCUA Chair Debbie Matz seeking transparency regarding its risk-based capital proposal. Congressman McHenry is chief deputy whip and chair of the House Financial Services Committee's Oversight and Investigations Subcommittee.