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CBO Destroys Democrat Talking Point Against Financial CHOICE Act

Washington, May 22 -

The non-partisan, independent Congressional Budget Office (CBO) exposed the Democrats’ top talking point against the Financial CHOICE Act for the lie it is.

“Democrats have sought to portray the legislation as a giveaway to big banks,” the Washington Examiner notes, yet the CBO reports that “the biggest U.S. banks likely would not get relief from the new banking rules in the legislation.”

“[T]he budget office's finding that the eight U.S. banks considered potential threats to the financial system would decline the choice offered in the bill, which is for banks to get out from some of the new rules if they maintain a higher level of capital. To hit the 10 percent requirement, they would have to raise too much capital….megabanks would not benefit enough to opt out of regulations.”

“Few big banks would benefit,” the American Banker’s article on the CBO report says.  “Large banks…would find that they would have to raise substantially more capital to comply” with the Financial CHOICE Act’s criteria to earn the majority of regulatory relief.  “[M]egabanks would not benefit enough to opt out of regulations.”

So who does benefit? Small community banks, the CBO reports.

“In the budget office's estimation, most of the banks that would opt for the [CHOICE Act’s] higher capital requirement would be small community banks,” the Washington Examiner states.

Who else benefits, according to the CBO?

Hardworking taxpayers.

H.R. 10, the Financial CHOICE Act “would slash the federal budget deficit by $24 billion over a decade,” The Street’s report on the CBO score says.

“The Financial CHOICE Act is not what Wall Street wants, but it is what Main Street and hardworking taxpayers need.” – Chairman Jeb Hensarling