Hensarling Praises President’s Action to Stop Dodd-Frank Bailouts for Wall Street
Washington,
April 21, 2017 -
Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following comments after President Trump today took action to stop regulators’ ability to designate companies “too big to fail” and the use of the Dodd-Frank Act’s bailout authority pending reviews by the Department of the Treasury:
“Democrats promised the American people that Dodd-Frank would end ‘too big to fail’ and bailouts, but with Dodd-Frank the big banks got even bigger and bailouts are enshrined into law. Dodd-Frank actually gives unelected Washington bureaucrats the power to meet behind closed doors and pick and choose which companies will be ‘too big to fail’ and which companies will be ‘too small to matter.’ Even worse, those anointed by the bureaucrats as ‘too big to fail’ are first in line to receive taxpayer-funded bailouts if they get in trouble. It’s absurd and unfair to hardworking taxpayers.
“No company in America should ever be anointed ‘too big to fail’ and no taxpayer should ever be forced to pay for more Wall Street-type bailouts.
“President Trump deserves tremendous praise for taking decisive action to protect taxpayers and our economy. He pledged to dismantle Dodd-Frank, and his actions today are another significant step towards ending the Dodd-Frank mistake that has given Washington bureaucrats more power to politically control our economy. I am especially pleased that the President’s actions reflect the principles of the Financial CHOICE Act, our plan to end bailouts, make Wall Street and Washington accountable, and build a healthier economy for all.”
The Financial CHOICE Act repeals the authority Dodd-Frank gave bureaucrats to bail out large financial institutions with taxpayer dollars and instead replaces it with a new chapter of the bankruptcy code designed to handle the failure of a large, complex financial institution without picking the taxpayer’s pocket.
In addition, the Financial CHOICE Act eliminates the government’s authority to anoint large financial institutions as “too big to fail” by repealing the Financial Stability Oversight Council’s discretion to designate firms as “systemically important financial institutions.”
The House Financial Services Committee will hold a hearing on the Financial CHOICE Act on Wednesday, April 26.
Click here to learn more about the Financial CHOICE Act.
