Thursday, April 20, 2017
House GOP Moves to End "Bailout Nation" with the Financial CHOICE Act
the staff of the Ridgewood blog
WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) today 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.”
FINANCIAL CHOICE ACT AT A GLANCE:
BANKRUPTCY, NOT BAILOUTS
No more bailouts: that’s at the core of our plan and our commitment to hardworking taxpayers. With bipartisan changes to our bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.
ACCOUNTABILITY FOR WALL STREET AND WASHINGTON
The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading. Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time we hold Wall Street accountable, the Financial CHOICE Act also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.
STRONGLY CAPITALIZED BANKS
Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size. That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.
The Financial CHOICE Act is based on two important principles: First, all banks need to be well-capitalized and, second, 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 if they get in trouble, taxpayers won’t be forced to bail them out. 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.
The Financial CHOICE Act grows our economy from Main Street up. 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.