Earlier this month, Republicans successfully leveraged their “Pledge to America” campaign strategy to take back a majority in the House of Representatives and secure a stronger minority in the Senate. Taking control of the House and strengthening their position in the Senate will increase Republicans’ influence over the direction of future financial regulatory reform and more specifically, the direction of the Consumer Financial Protection Bureau.
Republicans say that they will use the House Financial Services Committee to ensure that regulators such as the CFPB and FDIC do not introduce overly restrictive rules to the banking industry. Representative Jeb Hensarling, (R-Texas) who serves on the committee, commented, “We don’t want them to regulate capriciously, arbitrarily, without engaging in a cost-benefit analysis.” Many Republicans view their victory as a mandate to overturn much of the Dodd-Frank Act which they see as “overreaching.” Rep. Randy Neugebauer (R-Texas) claimed, “One of our bigger fears is that when the regulations and implementations are started, that they’ll be even more far-reaching than the legislation. And if that’s the case, then I think you are going to see us try to take some action to make some corrections there.”