Press Releases



Washington, June 10, 2016 -

Economic Growth for All, Bank Bailouts for None

In a speech to the Economic Club of New York on Tuesday, Chairman Jeb Hensarling unveiled the House Republican alternative to the failed Dodd-Frank Act.  The Wall Street Journal called it “the first detailed proposal for how a Republican-led government would likely proceed” and the New York Times reported the proposal can “help shape the Republican agenda in the next term.”

“If we want strong economic growth and more freedom, we must empower Americans, not Washington bureaucrats.  We must offer all Americans greater opportunities to raise their standard of living and achieve financial independence.  In a phrase, we need economic growth for all and bank bailouts for none.  This is the foundation of the Financial CHOICE Act, the Republican plan to reignite growth by replacing Dodd-Frank with real reforms that work,” he said.

CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.

In its coverage of the speech, Bloomberg reported the House Republican plan “seeks to rein in government agencies and policies that [Chairman Hensarling] says have stifled lending and are strangling the U.S. economy.”

In its report about the Financial CHOICE Act, the Washington Post noted Dodd-Frank is so complex, “[s]ix years after it was passed, regulators are still putting in place thousands of pages of regulations.”

The New York Times said the Republican alternative “advocates stronger penalties for financial fraud and puts a focus on capital buffers for large banks.” 

“Think of it as a market-based, equity-financed Dodd-Frank off-ramp,” the Wall Street Journal quoted Chairman Hensarling in its coverage of the speech.

“The House has steadily produced dozens of bills tweaking or chipping away at Dodd-Frank,” The Hill reported, but the Financial CHOICE Act is “the broadest, most ambitious effort yet by the GOP to change how Wall Street and Washington interact.”

Politico reported that while “the nation’s biggest banks” may not be willing to accept the proposal, “[s]mall banks, however, did not hesitate to get behind the plan.”

“For the survival of the community banks in the country, this is something that has to be considered,” the Dallas Morning News quoted John Heasley of the Texas Bankers Association.

For more information about the Financial CHOICE Act, click here.

Task Force Investigates Terror Funding Streams From South America

On Thursday, the Task Force to Investigate Terrorism Financing held a hearing to examine how South American criminal enterprises, including those designated by the U.S. as terrorist organizations, fund their operations.

“During a recent bipartisan CODEL to Colombia, Panama, Paraguay, and Argentina, I was able to meet with U.S. personnel on the ground working to identify, and choke off, funding to terrorist and organized criminal groups in the area,” said Task Force Chairman Mike Fitzpatrick (R-PA). “The expert panel of witnesses we have before us today will help us continue the important investigation we started on that trip of the efforts put forth by our allies and U.S. personnel in the region to combat the threat and whether U.S. lawmakers need to provide new tools or engage the administration more effectively to use the authority and resources they already have.”

Member Spotlight

Rep. Randy Hultgren | Hultgren Applauds Conservative Alternative to Dodd-Frank to Promote Economic Growth

“The CHOICE Act aims to allow financial institutions to provide hardworking Americans the financial services and access to credit they deserve, while increasing penalties and accountability for bad actors.”

Weekend Must Reads

American Action Forum | Incentive-Based Regulation

There is no stronger incentive than losing one’s own money, so the heart of the GOP’s Financial CHOICE Act is to encourage entities to have high levels of equity capital.  Don’t tell a bank what to do and hope it works, rather set up incentives for banks to voluntarily manage their risks so they don’t lose their own money and monitor activities so that their employees stay on the right side of the legal lines.  It’s a sensible approach.  

The Daily Signal | Jobs Report Numbers at Odds With Obama’s Economic Spin

On Wednesday, President Barack Obama took an economic victory lap in Elkhart, Indiana. The Bureau of Labor Statistics’ employment report, which came out Friday, shows he was far too optimistic.

Investor’s Business Daily | It’s Payday For Loan Sharks, Courtesy Of Federal Regulators

The CFPB has proposed new rules that will needlessly put tens of thousands of people out of work, all but ruin a $40 billion industry, deny many low-income families access to credit, increase bankruptcies and turbocharge the loan shark industry.

Heritage Foundation | Time to Repeal Dodd-Frank

Heritage Foundation financial regulations expert Norbert Michel praised the Republican approach, saying it would “provide sorely needed regulatory relief that could help revitalize the economy.”

In the News

The Daily Signal | The GOP Plan to End Wall Street Bailouts

Wall Street Journal | Republican Alternative to Dodd-Frank Calls for Banks to Boost Capital

Fox News | GOP Has New Plan to Police Wall Street

Investor’s Business Daily | Want to Bring Back Growth? Kill Dodd-Frank

New York Times | Plan to Dismantle Dodd-Frank Rekindles Debate

CNBC | Hensarling Proposes Overhaul of Dodd-Frank

The Street | How the GOP Could Kick Dodd-Frank to the Curb – Without Helping Wall Street

Washington Free Beacon | Republicans Unveil Financial CHOICE Act

Morning Consult | Hensarling Plan Would Strip FSOC of Its SIFI-Designation Powers

LA Times | Key House Republican unveils plan to overhaul Dodd-Frank financial reform law

Washington Examiner | GOP gives banks a way out of Dodd-Frank

On the Horizon

Wednesday, June 15, 2016 at 10:00 A.M.

Full Committee Markup

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