Rep. Hensarling: Easing Dodd-Frank Will Ease Load on Banks

Legislation easing Dodd-Frank restrictions will mean more banks will be able to make credit more available and less expensive, House Financial Services Committee Chairman Jeb Hensarling said Wednesday.

"What's going to happen is there's going to be a whole lot more banks that will be able to make credit more available and less expensive because they are no longer suffering under the weight, load, complexity and cost of the Dodd-Frank onslaught," the Texas Republican told Fox Business' "Mornings with Maria" host Maria Bartiromo.

"It's based to help a lot of regional banks and community banks and credit unions," he added. "These are the financial institutions that tend to capitalize our entrepreneurs, our small businesses, and so it's a really big deal."

House voted 258-159 on Tuesday to approve legislation rolling back the law, after the Senate voted 67-31 to approve it in March. President Donald Trump is reportedly eager to sign the legislation.

"It's the most pro-growth banking bill in probably a generation," said Hensarling. "I think you'd have to go back to 1999 to the signing of Gramm-Leach-Bliley [the Financial Services Modernization Act of 1999] to find something comparable."

He said he hopes for the bill to be signed this week, and then Congress can move onto the next "great subject," capital formation and passing the Jobs 3.0 act, which is geared toward IPOS, entrepreneurs, and start-ups," said Hensarling.

Dodd-Frank, said Hensarling, led to the loss of a "community bank or credit union a day in America. As we lost them, many Americans were losing their dream of owning a home, being able to buy a new car or put groceries on the table."

Hensarling also on Wednesday said he is glad that Trump is addressing the issue of MS-13 gangs and said the violence that has been occurring is a reason border security is necessary.

"Unbridled, unchecked illegal immigration is a threat to national security, physical security, our economic security and frankly the rule of law," said Hensarling.

"The president has been strong on this. And so I know throughout Texas and the southwest, and frankly throughout the nation, there have been victims of the MS-13 gang and I applaud, applaud the leadership of the president in trying to do something about this."

He also applauded Rep. Diane Black, R-Tenn., and her call for a crowdfunding push to finance building the Mexico wall. 

"As a border state congressman, I've been to the border, I've met with our border patrol. It is dangerous," he said.

"It is so dangerous for these people to attempt these illegal crossings and they're thrown in with some of the worst of society in the coyotes and so it's tragic how these people get crammed in to these very dangerous conditions as they try this perilous crossing."

The United States must send a message to immigrants that they will not get over the border illegally, said Hensarling.

"There's a legal way to come to America and we will open the door for people who love freedom and want to work hard and come here the legal way," he said. "But otherwise, do not try it because we're not going to let you in."

• Dodd-Frank Rollback to Favor Smaller Banks
• House Republican Dispute Delays Repeal of Dodd-Frank