Sen. Tammy Baldwin (D-Wis.) vowed to fight attempts to “water down” financial protection laws.
“The Federal Reserve gave Wall Street an early Christmas present when it delayed a part of the Volcker Rule for two years,” Baldwin said. “That rule, a key provision in Wall Street reform legislation that passed Congress over four years ago, prevents banks from using taxpayer-insured money to make risky investments, in this instance private equity and hedge funds.”
{mosads}Her comments came after the Federal Reserve decided to delay implementing of the Volcker Rule.
Baldwin said with Republicans controlling both chambers of Congress next year, it’s more important than ever for the administration to preserve financial protections in the Dodd-Frank law that passed after the 2008 economic crisis to prevent taxpayers from bailing out banks engaging in risking lending and investment practices.
“The Federal Reserve has a taken a serious step in the wrong direction at a time when we should be doubling down on efforts to prevent Wall Street, their lobbyists and a Republican majority in Congress from gutting Wall Street reform legislation,” Baldwin said. “I will continue to fight attempts to water down these needed reforms and prevent Wall Street from rigging the game against families and businesses that work hard and play by the rules.”
At the end of the 113th Congress, House Republicans attached legislative language to the government funding bill that repeals part of the Dodd-Frank law. Democrats blasted the move and pulled support for the funding measure, but it passed anyway.