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FreedomWorks CEO Adam Brandon commented on the news of President Trump’s impending actions targeting Dodd-Frank:
“While the purported intent of supporters was to prevent another economic crisis, Dodd-Frank has centralized banking power into fewer big banks, crushing small town banks across the country. It has also made ‘too big to fail’ the law, rather than eliminating risks to taxpayers.
“I am encouraged that President Trump realizes that unintended consequences are just as important as other consequences. If a law designed to reduce the influence of big banks makes them more influential and decreases access to credit for small business owners and entrepreneurs, it deserves to be axed.
“President Trump should make his case to the American people and congress, encourage them to pass repeal legislation, and sign it into law. I will be thrilled with any constitutional executive orders that begin to chop away at this harmful law. Congress, however, must move on legislation to eliminate the harmful effects of Dodd-Frank.”
Instead of allowing free-market mechanisms to guide banks toward responsible lending decisions, Dodd-Frank sent the wrong message. It gives banks an incentive to partake in risky and high-reward lending choices, knowing others will be responsible if the risks fail. It placed restrictions and regulations on small, community banks. These are the banks that lend startup money to nearby entrepreneurs. It is much more difficult to get a loan from one of the big banks than from the local bank where one has been banking for 30 years. Dodd-Frank’s effects have hurt rural economies across the country.