24th LD Opposes Weakening Dodd Frank

 

Resolution to Oppose Weakening the Dodd-Frank

Wall Street Reform and Consumer Protection Act

WHEREAS the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law by President Obama in 2010 in an attempt to reduce future threats from the causes determined to be at the root of the 2008 financial crisis; and
 
WHEREAS our nation’s largest banks have only grown larger since the crash of 2008 and are continuing to invest in complex financial instruments reminiscent of the sub-prime mortgage backed securities widely acknowledged to have contributed to the crash of 2008; and
 
WHEREAS banks are applying leverage ratios that are widely accepted to be risky and are likely dangerous to the financial health of their institutions, the security of their depositors, and the overall economy as a whole; and
 
WHEREAS implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act has been opposed and slowed by the corporate entities it intends to regulate, including delayed implementation of the Volcker Rule, designed to place restrictions on the types of risks banks can take with the funds entrusted by their depositors; and
 
WHEREAS efforts in Congress to roll back critical provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act are driven by Republicans, but also notably receive support from a small percentage of Democratic lawmakers, including moves in Congress to advance legislation that would again sanction bailouts of private institutional trades in entities known to be high-risk such as swaps and derivatives, and including other legislation that weakens the Volcker Rule, and other critical reforms designed to prevent another financial crisis similar to the one following the crash of 2008; and
 
WHEREAS rolling back portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act increases the likelihood that large institutions engaging in risky behavior will again be able to pass along their risk to taxpayers in the form of ‘bailouts’ for banks that are ‘too-big-to-fail’;
 
 
THEREFORE, BE IT RESOLVED: The 24th Legislative District Democrats oppose all attempts to weaken the critical Dodd-Frank Wall Street Reform and Consumer Protection Act legislation, including moves in Congress to advance legislation that would again sanction bailouts of private institutional trades in entities known to be high-risk such as swaps and derivatives, and including other legislation that weakens the Volcker Rule, and other critical reforms designed to prevent another financial crisis similar to the one following the crash of 2008.
 
Submitted 1/9/15 by Matt Sircely, PCO, Precinct 107, Jefferson County, WA
Passed 24th Legislative District by acclimation on January 10, 2015