Calling the Dodd-Frank Act the Democratic legislative Godzilla, Republicans on July 18 adopted a national party platform that calls for deregulation of small banks and a reinstatement of the Glass-Steagall Act.
Glass-Steagall, which established firewalls between investment and consumer banking, was repealed in 1999.
The Republican platform — adopted at the Republican National Convention in Cleveland — does not mention credit unions; the draft Democratic Party platform doesn't either.
However, the GOP platform made it clear that Republicans believe Dodd-Frank has had disastrous effects on financial institutions, saying the Democratic response to the financial crisis was ineffective.
"They did not let the crisis go to waste but used it as an excuse to establish unprecedented government control over the nation's financial markets," the document stated. "The consequences have been bad for everyone except federal regulators."
It stated Dodd-Frank is crushing small and community banks and other lenders.
The document cited the number of community banks that have gone out of business since 1985 and discussed the need for such financial institutions.
"Community banks are essential to ensuring small businesses have easy and affordable access to the capital they need to grow and prosper," the platform stated. "Community banks should be relieved of excess regulations."
The platform called the CFPB the worst of Dodd-Frank, stating its director has dictatorial powers that are unique in the U.S.
It accused the agency of harassing local and regional banks, and stated if it is not abolished, the agency should be subject to the annual appropriations process.
The platform said Congress should reclaim its power from the bureaucracy by requiring major new regulations to be approved by Congress.
In their draft platform, Democrats called for an updated Glass-Steagall law and for an expansion of Dodd-Frank and the CFPB.
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