Page 4 - ARUBA TODAY

A4 U.S. NEWS
Friday 9 June 2017

House votes to roll back some financial rules Top Republican seeks action

By KEVIN FREKING boost the economy. Poten- lending or other financial to steady insurance markets
MARCY GORDON tial areas for compromise wrongdoing.
Associated Press include changes to how “All we’re doing is spend- By RICARDO ZALDIVAR
WASHINGTON (AP) — The much capital banks must ing our time taking away Associated Press
Republican-led House ap- maintain and decreasing protections for the Ameri- WASHINGTON (AP) — A senior House Republican
proved sweeping legis- the paperwork burden for can people and their fu- on Thursday called for immediate action to stabilize
lation Thursday to undo small lenders. tures. Have we learned shaky health insurance markets around the country,
much of former President President Donald Trump nothing?” asked Rep. Ste-
amid concerns that the GOP could get blamed for
rising premiums and dwindling choice next year.
House Ways and Means Committee Chairman Kevin
Brady, R-Texas, said the government should keep
paying billions of dollars in “cost-sharing” subsidies
that help low-income people with deductibles and
copayments. The $7 billion is under a cloud because
of mixed signals from the Trump administration and a
lawsuit originally filed by House Republicans.
“We should act within our constitutional authority
now to temporarily and legally fund (subsidy) pay-
ments as we move away from Obamacare,” Brady
said at a budget hearing. He and his GOP colleagues
are trying to roll back President Barack Obama’s sig-
nature law that provided the financial assistance in
the first place.
“Insurers have made clear the lack of certainty is
causing 2018 proposed premiums to rise significantly,”
added Brady. That’s also a midterm election year, in
which every seat in the Republican-controlled House
and 33 seats in the GOP-controlled Senate are on
the ballot.
Among those insurers is BlueCross Blue Shield of North
Carolina, which recently requested a nearly 23 per-
Speaker of the House Paul Ryan of Wis., speaks with reporters during his weekly news conference
on Capitol Hill, in Washington, Thursday, June 8, 2017. cent increase in average premiums next year. The
(AP Photo/Cliff Owen) company said its increase for 2018 would have been
much less — about 9 percent — if it had a guaran-
tee that the government would continue to make full
Barack Obama’s landmark had said he wants to do ny Hoyer, D-Md. subsidy payments.
banking law created af- “a big number” on Dodd- Several Democratic law- Others have cited uncertainty as reason to exit mar-
ter the 2008 economic cri- Frank, and the House vote makers insisted they were kets like HealthCare.gov, which serve about 12 million
sis that caused millions of marks progress toward that willing to make some people. This week insurer Anthem said the problem
Americans to lose their jobs goal. changes to Dodd-Frank, was part of the reason it will leave the Ohio market.
and homes. The overhaul bill targets the but that the Republican bill CEO Joseph Swedish has said premiums could rise 20
The largely party-line vote heart of the law’s restric- went much too far. percent or more without the cost-sharing payments.
was 233-186, as Republi- tions on banks by offering “The bottom line is we put President Donald Trump asserts that the Affordable
cans argued the rules de- a trade-off: Banks could an end to the Wild West of Care Act is collapsing, and he’s repeatedly threat-
signed to prevent another qualify for most of the reg- Wall Street, and were on a ened to halt subsidy payments to force Democrats to
meltdown were making ulatory relief in the bill so nice, steady playing field,” negotiate on health care legislation. A House-passed
it harder for community long as they meet a strict said Rep. Michael Capua- bill that rolls back much of the ACA is now before
banks to lend and ham- requirement for building no, D-Mass. “We should be the Senate, where it faces uncertain prospects due
pered the economy. No capital to cover unexpect- able to adjust it, but we to fears that millions would be left uninsured.
Democratic lawmakers ed big losses. should not throw it out.” Testifying on Capitol Hill about the budget, Health
supported the measure; Democrats defended the The bill would repeal a rule and Human Services Secretary Tom Price tried to
only one Republican op- Dodd-Frank law, saying it that bans banks from en- reassure lawmakers that the administration will not
posed it. has meant financial secu- gaging in trading for their make any sudden moves. But he stopped short of
“Our community banks are rity for millions of people own profit using federally- offering a guarantee that subsidy payments would
in trouble,” said Speaker and that undoing it would insured deposits, or form- continue.
Paul Ryan, R-Wis. “They are encourage the kind of ing certain relationships “I’m limited in what I can say,” Price explained, citing
being crushed by the costly risky lending practices that with private equity funds. It the still-pending lawsuit.
rules imposed on them by invite future economic would roll back a proposed Price told lawmakers that Trump’s budget reflects
the Dodd-Frank Act. This shocks. rule that investment advis- continued payment of the subsidies for the next two
law may have had good They also oppose efforts to ers who collect commis- years. A White House spokesman would not com-
intentions but its conse- sharply curtail a consumer sions must put their clients’ ment. Lawmakers on Ways and Means and the Sen-
quences have been dire protection agency’s power interests ahead of their ate Finance Committee repeatedly asked about the
for Main Street.” to pursue companies that own. issue at two congressional hearings in which Price
House passage was widely it determines have par- Also, financial regulators testified on the budget.
expected, but the Repub- ticipated in unfair or de- would lose the power to Brady, who issued Thursday’s call to action, is one
lican overhaul of the 2010 ceptive practices in their dismantle a failing financial of the main authors of the House GOP health care
Dodd-Frank law is unlike- financial products and firm and sell off the pieces bill. He sees a temporary extension of subsidies as a
ly to clear the Senate in services. The Consumer Fi- if they decided its collapse duty of Republican lawmakers toward consumers
its current form. Senators nancial Protection Bureau could endanger the sys- “trapped” in what he calls “a poorly designed, gov-
have said they’ll spend has returned $29 billion to tem. Instead, the bill would ernment-run marketplace.” Democrats hotly dispute
the next few months trying 12 million consumers who let banks fall under an ex- that characterization, saying that the ACA needs
to find common ground were victims of deceptive panded part of bankrupt-
on legislation designed to marketing, discriminatory cy law.q fixes, not a tear-down.q