Patrick McHenryChairman

Washington, July 20, 2017 -

WASHINGTON – House Financial Services Committee Chairman Jeb Hensarling (R-TX), the sponsor of the Financial CHOICE Act, released the following statement on the anniversary of the Dodd-Frank Act becoming law:

This week marks Dodd-Frank’s seventh anniversary, but the only thing to celebrate is that Congress and the Trump Administration are working to end this Obama-era monstrosity and the financial harm it has inflicted on hardworking taxpayers and small businesses.

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 create jobs.  That’s exactly what the Financial CHOICE Act will do.  With the Financial CHOICE Act, the era of “too big to fail” and bank bailouts will end.  The Financial CHOICE Act lifts Dodd-Frank’s extreme regulatory burden on small banks and credit unions so they can make loans, promote economic growth and create jobs in local communities nationwide. 

The Financial CHOICE Act holds Wall Street accountable with the toughest penalties in history for fraud, deception and insider trading.  It also holds Washington bureaucrats accountable for the burdensome regulations they place on our economy.  Accountability for both Wall Street and Washington is key to protecting consumers, investors and our financial markets.

The non-partisan, independent Congressional Budget Office reports the Financial CHOICE Act will cut the deficit by $33.6 billion over 10 years.  When you end bailouts, you save taxpayers money.  The CBO also notes that community banks and credit unions, not big banks, will receive the most benefit from the Financial CHOICE Act. 

President Trump promised Americans that his administration would “dismantle Dodd-Frank” because of all the economic harm it causes hardworking Americans, and that is exactly what House Republicans voted to do in passing the Financial CHOICE Act.  We are excited to finally have a partner in the White House who understands that if we want a healthier economy with no more bank bailouts, we need to make this Dodd-Frank’s last anniversary.   

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts:  that’s at the core of the Financial CHOICE Act. With changes to the bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading.  Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time the Financial CHOICE Act holds Wall Street accountable, it also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing. 

STRONGLY CAPITALIZED BANKS

Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size.  That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.

The Financial CHOICE Act is based on two important principles:  First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis.  Of the miniscule percentage that did fail, none posed a systemic risk.

EMPOWER AMERICANS

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