Committee Approves Financial CHOICE Act to End Bank Bailouts, Promote Economic Growth
May 08, 2017 / Source: House Financial Services Committee
Washington, May 4, 2017 -
Legislation to end bank bailouts, toughen penalties for wrongdoing on Wall Street, promote economic growth, and provide desperately needed regulatory relief for small community banks and credit unions passed the House Financial Services Committee 34-26 today.
The legislation – the Financial CHOICE Act – ends the Dodd-Frank Act’s taxpayer-funded bailouts of large financial institutions and imposes the toughest penalties in history on those who commit fraud and insider trading. The bill also demands greater accountability from Washington regulators and relieves well-capitalized banks from growth-strangling regulations that slow the economy and harm consumers.
CHOICE, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, received strong support from community banks and credit unions. Large financial institutions did not offer their support for the Financial CHOICE Act. Instead, Wall Street CEOs have said they do not support repealing Dodd-Frank.
“The Financial CHOICE Act ends bailouts so Washington can never again pick taxpayers’ pockets and hand the money over to big banks. With the Financial CHOICE Act, the era of big bank bailouts and ‘too big to fail’ will be over. There will be bankruptcy for failed banks, not bailouts. And banks that qualify for much-needed regulatory relief will be so well-capitalized that they pose no threat to taxpayers or the economy. Our plan replaces Dodd-Frank’s growth-strangling regulations on small banks and credit unions with reforms that expand access to capital so small businesses on Main Street can grow and create jobs,” said Chairman Jeb Hensarling (R-TX).
Vice Chairman Patrick McHenry (R-NC) said, “Since President Obama signed it into law, Dodd-Frank has made it more expensive for American families to save and borrow while also creating a regulatory climate that has hurt small business growth nationwide. Today’s vote on the Financial CHOICE Act is an important step in our work to undo the damage done over the last seven years.”
Oversight and Investigations Subcommittee Chairman Ann Wagner (R-MO) said, “For nearly 8 years, the Dodd-Frank Act and the Obama Administration’s ‘Washington-knows-best’ mindset have crippled the growth of our national economy. When I voted today to pass the Financial CHOICE Act out of Committee, I kept the needs of our families and small businesses in mind. Americans deserve greater access to consumer products and advice, more transparency and accountability, and most of all a stronger economy that boasts a level playing field and spurs job growth and creation. The Financial CHOICE Act will deliver on these promises we made in November and I applaud Chairman Hensarling for his leadership in moving this legislation forward.”
Monetary Policy and Trade Subcommittee Chairman Andy Barr (R-KY) said, “Seven years after enactment of the Dodd-Frank Act, it is clear we need significant reforms to better protect consumers, grow our economy, and provide regulatory relief. The Financial CHOICE Act will deliver these reforms to ensure all Americans have greater opportunities and that hard working taxpayers are never again asked to bailout Wall Street’s biggest banks. I appreciate the leadership of Chairman Jeb Hensarling in shepherding this bill successfully through the Financial Services Committee markup and I look forward to working with him and my colleagues to provide relief for the customers of Kentucky’s community banks and credit unions.”
Financial Institutions and Consumer Credit Subcommittee Chairman Blaine Luetkemeyer (R-MO) said, “The premise of the Financial CHOICE Act is simple: change the current regulatory paradigm in order to offer a new model that benefits taxpayers, consumers, and our local communities. The CHOICE Act will hold Washington and Wall Street accountable by replacing ‘too big to fail’ with bankruptcy and ‘too small to succeed’ with some common-sense regulatory relief. I’m proud to have worked with Chairman Hensarling on this critical legislation so that every American has the opportunity to achieve financial independence. The passage of the CHOICE Act is a victory for consumers, taxpayers, and economic growth.”
Terrorism and Illicit Finance Subcommittee Chairman Steve Pearce (R-NM) said, “What was intended to serve as a watchdog over large financial institutions, ended up crippling consumer access to credit and financial services. Dodd-Frank has forced banks to push burdensome regulatory fees onto the backs of hardworking families, individuals, and small businesses. The community banks in rural parts of America seem to be the ones carrying the heaviest burdens of these regulations. The reality is, Wall Street is not going to come to New Mexico to help people in rural communities afford housing, nor will they come out to lend to our small businesses that help strengthen our economy. Small financial institutions are the lifeblood of New Mexican businesses and families, and we must support them. The CHOICE Act will overhaul these Dodd-Frank regulations that areas like my district will benefit from the most.”
Capital Markets, Securities and Investment Subcommittee Chairman Bill Huizenga (R-MI) said, “For the last six years, Dodd-Frank has made it more difficult for hardworking Americans to secure a future for themselves and their children. Today, House Republicans took an important step forward in the effort to reverse that trend and strengthen our economy by advancing the Financial CHOICE Act. The Financial CHOICE Act enacts pro-growth reforms that allow community banks and credit unions to better serve their customers and facilitate small business job creation, restores accountability to both Wall Street and Washington, and protects taxpayers from future taxpayer-funded bailouts by ending ‘too big to fail’ once and for all. Additionally, the Financial CHOICE Act takes crucial steps to modernize the Federal Reserve and make it more accountable and transparent to the American people. These important reforms include an audit of the Fed so policymakers and everyday Americans have a more informed understanding of how the Fed is impacting our economy. I look forward to continuing this important debate as the full House of Representatives considers this critical piece of legislation.”
Housing and Insurance Subcommittee Chairman Sean Duffy (R-WI) said, “Millions of Americans are still suffering from President Obama’s economic policies, and the disastrous Dodd-Frank Act. Since it was shoved through Congress, bank fees have gone up, free checking is all but gone, and small community banks have been choked out of existence. Dodd-Frank’s regulations have made it harder to achieve the American Dream. Thankfully, under Chairman Hensarling’s leadership, there is a better way. The Financial CHOICE Act is an off-ramp from Dodd-Frank’s rules and regulations, will help restore our small community banks and credit unions to their important role in our communities, and will jumpstart economic growth. I am pleased that several of my ideas are incorporated into the bill, including reining in the CFPB by prohibiting them from soliciting information on non-public personal information without your permission, putting a stop to the CFPB's wasteful use of taxpayer dollars, and making significant changes to the SEC on the registration of proxy advisory firms that prohibit unfair, coercive, and deceptive practices.”
For more information about the Financial CHOICE Act, including an executive summary, a comprehensive and legislative text, please visit www.FinancialCHOICE.gop.