Financial CHOICE Act 2.0 Expected This Month
As Republicans continue negotiations on an Obamacare repeal plan, a new and improved version of the bill to repeal the Obamacare of the financial sector is expected in the coming weeks. House Financial Services Chairman Jeb Hensarling (R-TX) expects to reintroduce the Financial CHOICE Act-the bill to repeal major portions of Dodd- Frank- by the end of the month.
Passed through committee last fall, the Financial CHOICE Act provides the economy relief from years of misplaced regulations that have stifled job creation and economic growth. Key provisions end “too big to fail,” provide a regulatory off-ramp for banks that hold more capital, and limit the Fed’s authority to rescue failed firms.
The updated version of the CHOICE Act goes further to reign in the authority of the unaccountable Consumer Financial Protection Bureau. Along with curtailing the the CFPB’s rulemaking authority and providing new Congressional oversight for the bureau, the bill also allows the President to fire the Director at will-a sorely needed change given Cordray’s notorious abuse of power.
Dodd-Frank’s misguided approach to consumer protection and financial regulation has done little to accomplish anything other than restricting access to credit, ensuring future taxpayer bailouts, crippling the post-recession recovery, and promoting the very same activity that lead to the financial crisis to begin with.
In fact, recent Heritage Foundation research suggests such a repeal of Dodd-Frank will be the catalyst to kick start economic growth adding over 1 trillion to the economy through a one percent increase in GDP each year. With a stronger Financial CHOICE Act on the horizon, Congress and the Trump Administration have the opportunity to enact financial reform that brings economic growth back to the American people.