Heritage Action Supports Chairman Hensarling’s Financial CHOICE Act (H.R. 10)

In response to the housing collapse and financial crisis of 2007-08, Congress rushed to pass the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act under the guise of “consumer protection.” But instead of addressing the root causes of the financial crisis, such as the government’s reckless efforts to expand housing affordability and implied guarantees to bail out large financial institutions, Dodd-Frank empowers the very regulatory establishment which created the environment that led to the financial crisis in the first place.

Heritage Foundation Financial Regulations expert Norbert Michel writes:

“The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act is among the most inappropriately named laws ever enacted in the U.S. It neither reformed Wall Street nor protected consumers, and it imposed massive new regulations on banks far away from Wall Street.”

Along with imposing 3,500-plus pages of new rules and regulations on the financial industry, Dodd-Frank codifies “too big to fail” policy, runs local community banks out of business, restricts access to credit for investors and homebuyers, raises lending costs, reduces access to capital for small businesses, and created one of the most powerful and unaccountable federal agencies — the Consumer Financial Protection Bureau (CFPB). Evidence shows Dodd-Frank is one of the major factors responsible for the country’s historically slow economic recovery.

On June 6, 2016, House Financial Services Committee Chairman Jeb Hensarling (R-TX) unveiled his plan to repeal most of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. His legislation, entitled the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs) Act, was a significant, positive step toward repealing Dodd-Frank and restoring economic stability and growth to the financial markets.

But after the election of President Donald Trump and with Republicans maintaining control of both branches of government, Chairman Hensarling took advantage of the opportunity to strengthen  and reintroduce his bill.    

According to the Financial Services Committee website, the Financial CHOICE Act of 2017 would:

“end taxpayer-funded bailouts of large financial institutions; impose tougher penalties on those who commit financial fraud and insider trading; demand greater accountability from Washington regulators, and relieve well-capitalized banks from growth-strangling regulations that slow the economy and harms consumers.”

The newly introduced Financial CHOICE Act would do the following:

  • Mitigate “too big to fail” and bank bailouts by repealing most of Title I and all of Title VIII of Dodd-Frank.
  • Stop the government from seizing troubled financial firms through orderly liquidation and returns to a time-tested bankruptcy system by repealing Title II of Dodd-Frank.
  • Fundamentally reform the CFPB:
    • Rename it as the “Consumer Financial Opportunity Agency”
    • Governed by a single director removable at will by the president along with a deputy director appointed by the president
    • Restructure into an enforcement agency only, with no supervisory authority
    • Subject it to congressional oversight and the appropriations process
  • Rein in the Federal Reserve’s emergency lending authority by making it more difficult for the Fed to conduct bailout-style loans to insolvent firms.
  • Unleash small business creation, innovation and entrepreneurship by eliminating the misguided Volcker rule which has limited capital formation over the past few years.
  • Repeal the “Durbin Amendment” that allows the Federal Reserve to price-fix interchange fees from debit card purchases.
  • Subject all new major rules imposed by financial regulatory agencies to congressional approval under the Regulations from the Executive in Need of Scrutiny (REINS) Act.
  • Strengthen penalties on Wall Street for those who engage in fraud, insider trading and other corrupt practices.

Summarizing the core principle of the bill, Norbert Michel issued this statement:

“Dodd-Frank enshrined too big to fail with several key changes that make future taxpayer bailouts likely. The Financial CHOICE Act of 2017 repeals those key provisions and reduces the likelihood of future bailouts by providing regulatory relief for firms that absorb their own losses. Specifically, The CHOICE Act provides relief to banks that choose to fund themselves with more equity, thus lowering the probability of failure and taxpayer bailouts. Thus, the Financial CHOICE Act emphasizes the key principle that should drive any financial regulatory reform effort: there’s no justification for heavily regulating companies that bear their own losses.”  

The Financial CHOICE Act is a significant, positive step toward full repeal of Dodd-Frank. This bill provides regulatory relief essential to restoring economic growth, significantly reins in the unaccountable CFPB, and pushes the government out of the business of enacting price controls by repealing the Durbin Amendment. Republican members of Congress have repeatedly promised to get rid of Dodd-Frank and stop taxpayer funded bailouts. Now they have the opportunity to fulfill that promise by bringing the Financial CHOICE Act (H.R. 10) to a vote in the House and Senate, and sending the bill to the president’s desk.

***Heritage Action supports the legislation, encourages Representatives and Senators to support it, and reserves the right to key vote in the future.***

Please Share Your Thoughts

38 thoughts on “Heritage Action Supports Chairman Hensarling’s Financial CHOICE Act (H.R. 10)

  1. I don’t have a lot of time to devote to these messages, which are largely ignored by the recipients anyway. So, make it easy and quick. I’d prefer a DRAFT fax that I edit and you send to my Congressmen. Go to NumbersUSA.com to see how it’s done! And, P.S. Stop backstabbing Jim DeMint!

  2. Please send only summary request for votes yes or no. Messages with detail below for further information. I personally like all the information but others don’t have time to read. Thanks for all you do.

  3. Make sure this bill repeals Dodd-Frank and replacement is aligned with Conservative principles and supported by the GOO. We want to avoid another AHCA debacle.

  4. I agree. A summary with an email to representatives, ala NumbersUSA, would be used by more people. People will not read these long missives.

  5. Keep up the communication and good work! For us and our children, and for western-style freedom itself, leftism must be defeated in all its forms, legislative actions, and socio-financial models!

  6. I have a second mortgage that is a Dodd-Frank interest only loan where my payment is going up from $99 to $468 per month…is there anyway to keep my $99 payment fir this senior citizen???

  7. Please, and that’s a most strenuous please, make sure, without fail or falter, that the Dodd-Frank Act is repealed.

  8. I am a retired RN but well know this piece of legislation when it was first passed years ago. IT was a terrible bill and should be gotten rid of tooth and nail. We have paid so much as the middle class people and received little to nothing. In fact I am now considered “poor” because of what I have lost from all of the devilish doings of those who has sought to steal from those who had little so they had none. Please make right so we will be made dignified today. After all, we are all watching what is taking place in Washington every day.

  9. Thank you for the information as to Financial Choice H.R. 10 as well as the workings of Dodd-Frank. House of Representatives and the Senate need to get rid of this bill as the Consumer (taxpayer) just keeps paying the cost of and for Banking.

  10. This sounds good, Better yet bring back the 1933 Glass Steagall Banking Act, no more Speculation.

  11. Thanks for putting out a concise but sufficiently complete explanation of what is involved in this legislation. I know some want only quick bites for time purposes, but some things cannot be stated correctly in a few short sentences.

  12. Since 1933 the Glass Steagall Act protected the Banking System, for over 70 years. Then both Parties worked together to get rid of it. A lot of money was made by the speculators. But the tax payers were there to cover the bail outs. What was wrong with Act that worked for 70 years? For sure Dodd Frank should go and penalties must have teeth in them. Prison time is only deterrent they rich will fear. Fines alone have not stopped the rich from gaming the system. They pay a fine as a cost of doing business and don’t get to keep going.

  13. Are You Kidding Me?? You are all brainwashed by the corrupt Heritage Foundation. These are the same people who wanted to De-regulate the banks which cost the Middle Class $22 Trillion. Don’t be fooled. This fake news is being funded by the Banks and has absolutely no regrard for the Middle Class. This is simply a ploy to make the banks even bigger. Wake Up!!

  14. And Further More….The Heritage Foundation is simply a Fascist Hate Group who supports the most corrupt President in history…Donald J. Trump…who makes Richard Nixon loom like a Girl Scout…..Wake Up all of you Naive, Low Information Voters!!

  15. As a former banker, who also did mortgages, I would rather repeal the whole of Dodd-Frank and get rid of the Consumer Financial Protection Board. Then I would repeal Sarbanes-Oxley. The Middle Class started losing numbers after Sarbox, too many regulations piled up. This CHOICE Act is better than nothing, but as noted, it is not enough. Stop the harmful CRA rules. It is criminal to require subprime mortgages that will force the mortgagees into debt they can’t afford and banks into trouble. This isn’t even being charitable. Let banks be banks, not force them to sit on the sidelines not making needed, good loans.

  16. Are any of you lemmings going to comment on my comments about the Heritage Foundation? Does anyone actually know the real issues….or care about them?

  17. Contrary to the comments that opened this section, I found the detail in this article ABSLUTELY OUTSTANDING. Yes, NumbdrsUSA is to be emulated. Blast FAX letters let Congressmen feel the advocacy of their constituents. BUT thinking voters need to understand what is being proposed as legislation. Dodd-Frank was a poison pill to the US? Why. I’d like to read the substantive analysis. This new bill will help fix. But lets get all the poison, and lets get this done.

  18. Dodd-Frank empowers the very regulatory establishment that led to the financial crisis in the first place. #CHOICEAct

  19. I preside over real estate closing for title companies and the CFPB has enacted an endless number of requirements that have nothing to do with protecing consumers. They take power away from the Secretaries of State for each state and control the industries and employees in it to have to obey their directive. Basic safeguards such as making sure people are voluntarily signing documents are still in place, but being erroded.

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