Rolling back financial protections put in place under the Dodd-Frank Act will alleviate the suffering being experienced under the "heavy regulations" that were included on top of the reform law, Rep. Steve King said Friday, and he supports President Donald Trump's plans.
"I hear from the financial community constantly every year," the Iowa Republican and House Judiciary Committee chairman told MSNBC's Stephanie Ruhle. "They come to my office once or twice or three times and especially the small banks or independent banks are suffering under heavy regulations that are written on top of Dodd-Frank.
"Dodd-Frank was heavy enough without the regulations mounted on top of it."
As a result of the regulations, banks need to hire extra people just to meet paperwork standards and deal with other issues, said King, and that limits business.
"When I started in business, I had a banker with enough confidence in me, he trusted me 100 percent," said King, whose construction business has been open for 40 years. However, under the Dodd-Frank rules, such business dealings cannot happen, said King.
"The fiduciary rules and counselors helping the small investors, it hurts them more than the larger investors," said King.
"It's going to push them out, where they can't help people manage their money. Small and mid-size banks are strangled in this. When you think about why Dodd-Frank was put in place, it's because of the egregious practices the big banks took."
King said he entered Congress when the banking industry went into its downward spiral in 2007 and 2008, but believes things should have been left to "shake itself out" rather than rely on Dodd-Frank.
King said he wants to see all of Dodd-Frank be repealed, and he hopes Trump calls on Congress to step up its pace and "go back to the free enterprise system."
"The thing I especially don't like about Dodd-Frank, three government entities decide whether an investment bank goes into receivership," said King.
"That means the banks have to be in the capitol lobbying or competition will lobby them out. It's too much government involvement."
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