Lawmakers would be debating whether a rule governing derivatives is a good idea “when most people don’t even know what a derivative is,” Watt said. “Asking all 435 members of the House who have no background” in finance is asking for trouble.
The argument over the amendment, which lasted about 45 minutes, grew increasingly heated as Watt and Bachus threw jabs at one another.
Bachus said small community banks are suffering most from Dodd-Frank's regulations and more are “disappearing every day.”
“They are throwing in the towel and saying, ‘I can’t comply with these regulations,' " Bachus said.
In regards to the CFPB, Bachus called it the “most powerful body [Congress] has ever created.” If any entity needs oversight provided under the REINS Act, he continued, it’s the consumer bureau.
He argued that the director of the CFPB has no oversight to constituents and therefore is able to wield unchecked power over issuing rules that could have a profound effect on businesses.