The House Budget Committee released Rep. Paul Ryan's fiscal 2014 budget plan on Tuesday. The plan renews its attacks on the 2010 Dodd-Frank reform law, including its provisions for winding down large, failing banks.
"The Wisconsin Republican's plan, which would slash $5.7 trillion in total spending and balance the budget in 10 years, is widely expected to pass the Republican-controlled House, but will not have much life beyond that due to strident opposition from Senate Democrats and the White House," writes American Banker's Victoria Finkle.
The Senate Budget Committee is expected to begin deliberating on its own budget Wednesday.
"After reviewing the GOP budget proposal it became readily apparent that much of the document was a rehashing of earlier proposals, especially for financial services issues. In fact, some elements of the proposals were literally copied verbatim from Rep. Ryan's 2012 budget proposal," said Isaac Boltansky, a policy analyst at Compass Point Research & Trading. "The renewed calls to terminate the orderly liquidation authority granted by the Dodd-Frank Act and to wind down the GSEs will evoke the exact same reactions they did in 2012 - loud cheers in the House and crickets in the Senate."
Ryan's budget recommends removing title II of the Dodd-Frank law, which establishes the Federal Deposit Insurance Corporation's authority to wind down large institutions, citing a long-disputed Congressional Budget Office estimate that the program will cost taxpayers $33 billion over the next decade.
For the full piece see "House Budget Plan Targets FDIC Powers (Again)" (may require subscription).