Despite weeks of speculation that the Republican majority in the House of Representatives would gut Dodd-Frank, their new budget plan only repeals the provisions that mandate "permanent bailouts" and keeps the rest.
The "Path to Prosperity" budget cuts straight to the heart of Republican dissatisfaction with the Dodd-Frank reform by eliminating the "too big to fail" rule mandating that the FDIC bail out the creditors of the biggest institutions.
This tactical repeal answers my question from a few days ago about how Dodd-Frank institutionalizes the TARP mentality of bailing out the giants while leaving smaller players to sink or swim.
Hard to find a way that leaving it in the regulations helps the typical retail client or small business owner, so it's probably good to get rid of it.
And with Representative Bachus himself -- a noted opponent of expanded SEC funding -- now expressing an interest in "preserving what's good about Dodd-Frank," it might be a good time to go through the massive reform package line by line and see what still makes sense and what doesn't.
Dumping the whole bill only raises questions about whether the interests of Congress are aligned with the interests of the public. Presumably advisors already know what side they're on.