Choice Act Scheduled for Financial Services Committee Hearing

WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) yesterday announced that the committee will hold a hearing to discuss the Financial CHOICE Act on Wednesday, April 26 at 10:00 a.m.  

“Republicans are eager to work with the President to end and replace the Dodd-Frank mistake with the Financial CHOICE Act because it holds Wall Street and Washington accountable, ends taxpayer-funded bank bailouts, and unleashes America’s economic potential,” said Chairman Hensarling.  “We want economic opportunity for all, bailouts for none.  We want real consumer protections that will give you more choices.  Our solution grows the economy from Main Street up, creates more opportunities for working families to get ahead, and levels the playing field with no more Wall Street bailouts.”

CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs. 

The ideas and principles behind the Financial CHOICE Act were first unveiled last June by Chairman Hensarling in a speech to the Economic Club of New York.  The Financial Services Committee approved the Financial CHOICE Act in September.  The Committee will discuss an updated version of the bill at Wednesday’s hearing.

“Supporters of Dodd-Frank promised it would lift the economy, end bailouts and protect consumers.  Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices.  Dodd-Frank failed to keep its promises to the American people, but we will work with President Trump to follow through on his promise to dismantle Dodd-Frank.  That’s not what Wall Street wants, but it is what hardworking Americans need to have a healthier economy with more opportunities so they can achieve financial independence.”

The Financial CHOICE Act is based on two important principles; all banks need to be well-capitalized and community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that taxpayers won’t be forced to bail them out should they get in trouble. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis.  Of the miniscule percentage that did fail, none posed a systemic risk.

According to a committee press release announcing the hearing, the Financial CHOICE Act is intended to “grow the nation’s economy from Main Street up” while “Dodd-Frank tries to control the economy from Washington down.”  “The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth,” the release said.

The Financial CHOICE Act discussion draft is available here

 

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