In an effort to overhaul the financial regulation, Ccongressman Jeb Hensarling sent letter to Federal Reserve Chair Janet Yellen on Thursday, Feb. 23. Hensarling told Yellen to pause regulation until the new board member is appointed.
The vacant position is vice chairman for supervision, which was created in 2010 when Dodd-Frank Wall Street Reform and Consumer Protection Act was issued. However the position has never been filled. Hensarling told the Fed to wait until President Trump appoints the new vice chairman, Bloomberg reported.
He also warned the Fed, that Congress will undo the regulations issued by Federal Reserve. In the letter he wrote that if Federal Reserve insisted to issue the regulation he prompted, “please be aware that we will work with our colleagues to ensure that Congress scrutinizes the Federal Reserve’s actions.”
Vice Chairman of Supervision in the Federal Reserve Bank is the position with was created in the Dodd-Frank 2010 Act. The position is the member in the board of governor of the Fed, whose function is to create and monitor bank stress test as regulated in Dodd-Frank. However, the position is left vacant for seven years.
Congressman Hensarling has long criticized the Dodd-Frank 2010 Act. In an interview with CNBC on Feb. 16, he urge the Fed to fully dedicated as the monetary policy maker. He also criticized the Consumer Financial Protection Bureau (CFPB) as the unelected dictatr in the financial industry that must be stopped.
Since the Dodd-Frank 2010 Act was regulated in July 2010, there have been many objections to the law. There are many small banks that are reported to close their business due to the very strict regulations. The law also inhibited the startup companies to grow, because it would be more expensive for them to get a loan or financing.
Watch the interview with the Finance Editor at the Economist Tom Easton about the terrible law Dodd-Frank 2010 Act below:
