In the new budget proposal released by House Republicans on Tuesday morning, House leaders are targeting a number of Obama's legacy-boosting accomplishments, including his administration's attempts to tighten regulations on Wall Street.
The attacks on Dodd-Frank are not surprising, given that they have appeared in previous GOP budget proposals and that many Republicans have voiced long-standing opposition to the act's financial regulations. In a press conference after the 2014 midterm elections, now-Senate Majority Leader Mitch McConnell called the law "Obamacare for Banks."
The budget plan denies the Federal Deposit Insurance Corporation "the authority to access taxpayer dollars to bail out creditors of large, 'systemically significant' financial institutions."
Dodd-Frank includes a provision called Orderly Liquidation Authority, under which the FDIC may be appointed as a receiver for a bank that is in danger of default, and whose resolution under bankruptcy code could cause instability, and in turn carry out the resolution of a troubled financial institution.
The text of Dodd-Frank says the Orderly Liquidation Authority would not leave the general public on the hook and that money for the process would come from an "Orderly Liquidation Fund" that would receive revenue from the systemically important financial institutions themselves.