This week, House Republicans led by Financial Services Committee Chair Jeb Hensarling (R-TX) introduced the latest version of the Financial CHOICE Act. This is the latest effort to roll back burdensome regulations from the 2009 Dodd-Frank Act.
Hensarling says the bill contains the following key principles:
- Taxpayer bailouts of financial institutions must end and no company can remain too big to fail;
- Both Wall Street and Washington must be held accountable;
- Simplicity must replace complexity, because complexity can be gamed by the well-connected and abused by the Washington powerful;
- Economic growth must be revitalized through competitive, transparent, and innovative capital markets;
- Every American, regardless of their circumstances, must have the opportunity to achieve financial independence;
- Consumers must be vigorously protected from fraud and deception as well as the loss of economic liberty; and
- Systemic risk must be managed in a market with profit and loss.
While this is a step in the right direction, most observers, including Congressman Sean Duffy (R-WI), see the Senate as not able to pass the bill in its entirety. Likely only portions of the bill that are less controversial will be passed by the Senate later this session.
Among other regulatory relief items, the Portfolio Lending legislation and the TAILOR Act that “right-sizes” regulations based on bank size and conditions are included.
WBA staff is meeting today in DC with members of our delegation and many bankers will be there next week with WBA staff for the ICBA Capital Summit.
Full details of the proposal can be found here.