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Hensarling on Dodd-Frank's Unhappy Anniversary: Instead of ending 'too big to fail,' Dodd-Frank has created 'too small to succeed.'


WASHINGTON, Jul 21 -

Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following comments today on the sixth anniversary of the failed Dodd-Frank Act being signed into law:

"One of the main reasons why we’re stuck in the worst economic recovery of our lifetimes is the Dodd-Frank Act, a grave mistake Democrats inflicted upon the American people six years ago today.

"Only Washington would claim Dodd-Frank is 'Wall Street reform.'  Dodd-Frank includes a taxpayer-funded bailout scheme for banks designated 'too big to fail.'  It gives big banks an advantage over small ones that can’t keep up with the size, cost and complexity of all its regulations.  Instead of ending 'too big to fail,' Dodd-Frank has created 'too small to succeed.'

"And only Washington would claim Dodd-Frank is somehow a 'consumer protection' law.  Under Dodd-Frank, the number of banks offering consumers free checking has been cut in half, the law’s regulations have fueled a surge in customer fees and cost increases for credit cards and auto loans, and community banks across the country find it harder to offer mortgages.

"We need to get government out of the bailout business and level the playing field so small banks and credit unions have a better chance to compete and help our economy grow stronger.  That’s the idea behind the Financial CHOICE Act.  It requires bankruptcy for failed firms, not bailouts.  It lifts Dodd-Frank’s excessive regulatory burdens on small banks and credit unions.  This will increase lending activity to small businesses and help more Americans achieve financial independence.  The Financial CHOICE Act will also hold Wall Street accountable with the toughest penalties in history for financial fraud, self-dealing and deception.  Accountability is key to better protect consumers, investors and our financial markets.

"Instead of Dodd-Frank’s bailouts and lackluster economy, we can achieve economic growth for all and bank bailouts for none with the Financial CHOICE Act."