Make us your home page
Instagram

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

PolitiFact: Romney appears ready to roll back bank regulations

The statement

Says "Mitt Romney's plan rolls back regulations" on banks.

President Barack Obama, in a television ad

The ruling

Romney has not spoken in detail about his financial regulation plans. Sifting through his website, interviews and his public comments, we see these core elements:

• He would repeal Dodd-Frank, the wide-ranging law that aims to fix many of the lapses associated with the meltdown that brought about the Great Recession. Romney has said he would replace the law but has not gone much beyond that concept.

• Romney supports the idea of regulations. "Extensive regulation is appropriate in an industry that has such an impact on the overall economy," he said in an interview with Time.

• Romney supports rules to ensure that banks have their own money at risk, as this promotes greater caution. "You have to have rules for what kind of capital has to stand behind each kind of asset on Wall Street and banks," he said on 60 Minutes. This is part of current law.

• He supports greater transparency for derivatives trading. Derivatives as investment devices are not inherently bad, but they helped hide the weaknesses of the home mortgage market and increased the exposure of many investors when the sector collapsed. Dodd-Frank has a detailed approach to shedding light on derivatives trading.

• Romney opposes the current plan for orderly liquidations when banks fail. "We need to get rid of that provision because it's killing regional and small banks," Romney said in the first presidential debate. However, he has not said how he would change the current law.

• Romney believes regulators should move faster to define the minimum standards for a home mortgage loan.

The Obama campaign backs up its claim with a Boston Globe story emphasizing that Romney says he would do away with Dodd-Frank without saying what would replace it. Since that time, Romney has said a bit more, captured in that list above, but not much more.

In May, one of Romney's top economic advisers, Glenn Hubbard, said the public could expect more detailed proposals on several key fronts, including what to do if one of the biggest banks fails, consumer financial protections and housing finance. However, those proposals never appeared.

So Romney has provided scant details on his plans, but he has said that he would push for changes. Romney has never suggested that tougher regulations are needed, and he has said many times that government regulates too much. It is reasonable to conclude his plans would be more in line with current Republican initiatives than the current law passed by Democrats. That direction points toward fewer restrictions than are in place under Dodd-Frank. Certainly, Romney has said that the provisions for the largest banks should be replaced.

We rate the statement Mostly True.

This ruling has been edited for print. Read the full version at PolitiFact.com.

PolitiFact: Romney appears ready to roll back bank regulations 11/03/12 [Last modified: Friday, November 2, 2012 6:55pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Rowdies shut out at Pittsburgh

    Soccer

    PITTSBURGH — The Rowdies lost their first USL game in nearly a month, 1-0 to Pittsburgh on Thursday night.

  2. Trump reveals that he didn't record Comey after all

    Politics

    WASHINGTON — President Donald Trump declared Thursday he never made and doesn't have recordings of his private conversations with ousted former FBI director James Comey, ending a monthlong guessing game that he started with a cryptic tweet and that ensnared his administration in yet more controversy.

    President Donald Trump said Thursday that he didn’t record his conversations with James Comey.
  3. Lightning fans, don't get attached to your first-round draft picks

    Lightning Strikes

    CHICAGO — When Lightning GM Steve Yzerman announces his first-round pick tonight in the amateur draft at No. 14, he'll invite the prospect onto the stage for the once-in-a-lifetime photo opportunity.

    Tampa Bay Lightning left wing Jonathan Drouin (27) eludes  Montreal Canadiens left wing Phillip Danault (24) during the second period of Wednesday???‚??„?s (12/28/16) game between the Tampa Bay Lightning and the Montreal Canadiens at the Amalie Arena in Tampa.
  4. Investigation Discovery TV show profiles 2011 Landy Martinez murder case

    Crime

    The murder of a St. Petersburg man will be featured this week on a new true crime series Murder Calls on Investigation Discovery.

    Jose Adame sits in a Pinellas County courtroom during his 2016 trial and conviction for first-degree murder. Adame was convicted of first-degree murder last year for torturing and then executing his boyfriend as he pleaded for his life in 2011. Now it will be featured in a new true crime series Murder Calls on Investigation Discovery. The episode will air on June 26 at 9 p.m. [DOUGLAS R. CLIFFORD   |   Times]
  5. Uhuru mayoral candidate Jesse Nevel protests exclusion from debate

    Blogs

    ST. PETERSBURG — Jesse Nevel, the International People’s Democratic Uhuru Movement candidate for mayor, on Thursday demanded that he be allowed to participate in a July 25 televised debate between incumbent Mayor Rick Kriseman and challenger Rick Baker.

    Mayoral candidate Jesse Nevel holds a news conference outside the headquarters of the Tampa Bay Times on Thursday to protest his exclusion from the mayoral debate. Nevel is a member of the International People’s Democratic Uhuru Movement.