The House will consider the Financial CHOICE Act this week. This is the Republican plan to reform Wall Street and revitalize Main Street—all while protecting the financial futures of Americans. Here are five reasons why it’s necessary:
1. It reins in Dodd-Frank.
No one argues that Wall Street needs some regulation. While the Dodd-Frank Act may have had good intentions, it overreached and in practice hurt Main Street and consumers while providing more protections for Wall Street. The Dodd-Frank Act was designed to grow the size of government exponentially—and it did. It has more rules and regulations than any other Obama-era law. But instead of instilling sensible regulation on the financial industry, it cozied the federal government up with big banks. What was the effect? Big banks on Wall Street have gotten bigger, while putting untenable burdens on community banks across the country.
2. It delivers relief to Main Street.
Small, community banks give the majority of small business loans in this country. Since Dodd-Frank, these banks have struggled. Many community banks have gone under. That has hit Main Street hard, since families and small businesses can’t get the loans they need to get off the ground. The CHOICE Act will give regulatory relief to banks that keep 10% in cash reserves, which delivers relief while protecting consumers.
3. It ends taxpayer bailouts.
Remember “too big to fail?” Dodd-Frank actually made this the law of the land, so it's no wonder that Wall Street banks have only gotten bigger since Dodd-Frank was enacted. But the CHOICE Act eliminates this practice once and for all. The bill is clear: Not a single dollar of taxpayer money will go to bailout Wall Street firms. Instead, it holds Wall Street accountable by imposing enhanced penalties for fraud and increasing transparency in the financial sector.
4. It cuts the deficit by $24 billion.
The Congressional Budget Office (CBO) estimates that the CHOICE Act will cut the deficit by $24 billion over the next 10 years. The CHOICE Act delivers on our promise to protect taxpayer money, reduce the size of government, and cut our deficit.
5. It reins in unchecked Washington bureaucrats.
While the Consumer Financial Protection Bureau (CFPB) authorized by Dodd-Frank sounds great in theory, in reality it is a rogue agency that is unchecked, unconstitutional, and unaccountable. Bureaucrats in Washington should not have the ability to collect consumer information without their knowledge and unilaterally determine what financial products and services Americans can utilize. The CHOICE Act restructures this agency under the Consumer Law Enforcement Agency and makes it accountable to Congressional oversight and the normal appropriations process.