Includes ending ‘too big to fail’, dramatic overhaul of CFPB
If House Financial Services Committee Chairman Rep. Jeb Hensarling, R-TX, has his way, Tuesday, June 7, 2016 will soon be remembered as the day that the death clock started on the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Just as he recently promised, Hensarling on Tuesday revealed the Republican-crafted plan to repeal Dodd-Frank and replace it with a “pro-growth, pro-consumer” alternative.
n a speech given at the Economic Club of New York, Hensarling revealed the Republican plan, entitled the Financial CHOICE Act. “CHOICE” in this instance stands for “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.”
When Hensarling first spoke of the Republicans’ plan to overhaul Dodd-Frank, he laid out a series of principals that would fundamentally change the way that the country’s financial system operates, and the specifics of the plan don’t disappoint in that regard.
“We remain stuck in the slowest and weakest economic recovery in our history. Last quarter’s pathetic GDP growth of less than 1% merely punctuates the point,” Hensarling said in his speech Tuesday.
“The economy isn’t working for tens of millions of working Americans who cannot get ahead and fear for the future of their families. Their paychecks remain stagnant; their savings have declined,” he continued.
Per an executive summary of the Financial CHOICE Act provided by the House Financial Services Committee, those sections are:
1. Provide for election to be a strongly capitalized, well-managed financial institution
2. End “too big to fail” and bank bailouts
3. Empower Americans to achieve financial independence by fundamentally reforming the CFPB and protecting investors
4. Demand accountability from financial regulators and devolve power away from Washington
5. Demand accountability from Wall Street through enhanced penalties for fraud and deception
6. Unleash opportunities for small businesses, innovators, and job creators by facilitating capital formation
7. Provide regulatory relief for Main Street and community financial institutions