WASHINGTON – Today, the House Financial Services Committee passed the Financial CHOICE Act after three days and approximately 28 hours of bill mark-up and consideration of amendments. The bill would replace Dodd-Frank with a “right-sized” set of regulations that would hold Wall Street accountable while giving smaller financial institutions a level playing field where they can better compete and provide quality services to consumers.
The bill also will end ‘too big to fail’ and the potential for future taxpayer-funded bank bailouts. Dodd-Frank institutionalized ‘too big to fail’ by enabling unelected bureaucrats in Washington to decide what constitutes ‘systemically important.’ The CHOICE Act will allow these institutions to fail without disrupting the economy or leaving the taxpayers on the hook.
The Consumer Financial Protection Bureau (CFPB), arguably the least accountable federal agency, would become the Consumer Law Enforcement Agency (CLEA), responsible for consumer protection and competitive markets and subject to more congressional oversight through the appropriations process and creation of an independent, Senate-confirmed Inspector General. The CHOICE Act would also repeal the Department of Labor’s Fiduciary Rule, which adversely impacts those trying to save for retirement by limiting consumer choice and access to sound financial advice while increasing costs for lower-income Americans trying to save for their retirements.
Congressman French Hill (AR-02) released the following statement after the House Financial Services Committee passed the Financial CHOICE Act:
“Families, entrepreneurs, and small businesses have been hurt by the results of the over 44,000 pages of complex regulations from the Obama-era Dodd-Frank Act. Today’s vote in the Committee to move the Financial CHOICE Act is a major step toward ending the one-size-fits-all regulatory approach of Dodd-Frank that crippled the ability of our community banks and credit unions to serve their customers. These relationship-driven, locally focused banks historically have played a primary role in providing loans and access to capital to many consumers and small businesses.
“The American people do not believe that 1.5 percent economic growth is the new normal, and if we want real economic growth that drives us back into prosperity, then our smaller financial institutions need an environment where they don’t just survive, but they thrive. The Financial CHOICE Act is the way to achieve this goal. I applaud the work of Chairman Hensarling and the Financial Services Committee on this bill and encourage House Leadership to swiftly bring it to the floor for a vote.”
