Speaking to the more than 1,000 attendees at ABA’s Government Relations Summit in Washington, D.C. today, Sen. Tim Scott (R-S.C.) criticized the Dodd-Frank Act, saying that the legislation created a “regulatory labyrinth” that has stymied banks’ ability to serve their customers and grow the economy.
“Dodd-Frank is not for us, it is against us,” said the Senate Banking Committee member. “It stands in the way of common sense and the ability to fulfill the American dream.”
Scott recounted his own personal experience as a young entrepreneur and the role his local banker played in his success. “He engaged me in a serious conversation that led to me being able to open my business,” Scott said, though he added that “the regulatory environment is making it more and more difficult every single day to see kids like I used to be start businesses.”
“What we’re missing in Washington is common sense,” he added, pointing to the cumbersome requirements — like the TILA-RESPA Integrated Disclosures– and regulatory inconsistencies that have created a “chaotic environment” for banks.
Despite his pessimistic view on Dodd-Frank, Scott said that he still sees opportunities to work together with fellow lawmakers to pass bipartisan legislation, such as the bill proposed by Rep. Luke Messer (R-Ind.) that would treat certain municipal securities held by large banks as high-quality liquid assets.