GOP plan to replace Dodd-Frank coming soon

A top House Republican is preparing to unveil his plan to overhaul how the government regulates Wall Street.

House Financial Services Committee Chairman Jeb Hensarling (R-Texas) will present the GOP alternative to the Dodd-Frank financial reform law in a New York City speech on June 7.

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The committee announced the speech Tuesday, which will be delivered before the Economic Club of New York. In the announcement, the speech was billed as outlining “the Republican plan to replace the Dodd-Frank Act and promote economic growth.”

Hensarling’s plan will come just days after Donald TrumpDonald TrumpBush ethics lawyer: Trump should strip Flynn of military title Dems might begin again with Kamala Harris and California Trump's tax plan builds GOP's path to 2018, 2020, and beyond MORE said he would want to effectively eradicate Dodd-Frank if elected president.

The GOP presidential front-runner told Reuters earlier this month that he’ll be releasing his own financial regulatory blueprint soon, which would be “close to a dismantling of Dodd-Frank.”

Ever since the law was enacted in 2010, Republicans have heaped scorn on the measure. GOP lawmakers have put forward dozens of bills aimed at altering or outright removing various provisions of the law, but congressional Democrats and the White House have fiercely resisted nearly all those efforts.

And as Wall Street continues to take a populist beating from politicians on both sides, there has never been a wholesale attempt by a major congressional Republican to completely rework the landmark law.

Hensarling made clear he wanted to take on the entire bill, calling the raft of new rules a “regulatory waterboarding” for banks and small businesses. In March remarks to the American Bankers Association, Hensarling argued his alternative would still be effective, but significantly simpler than the huge Dodd-Frank.

In fact, Hensarling said his bill would be tougher on Wall Street giants than existing law, with much of the relief aimed squarely at smaller financial institutions that have struggled to keep up with the new regulations.

Details of Hensarling’s bill have yet to be released, but it’s a safe bet that the Consumer Financial Protection Bureau will be one of its targets. Hensarling has been a persistent critic of the agency created by Dodd-Frank, saying it lacks accountability and has far too much power.

But it’s also likely that Hensarling’s plan will meet with fierce resistance from Democrats, who have joined forces to block any attempts to significantly alter one of President Obama’s biggest legislative victories.