Prepare yourself: Congress is gearing up to overhaul Dodd-Frank & CFPB
Committee Hearing date for Financial CHOICE Act 2.0 has been set
The doomsday clock just moved 1 minute closer to midnight for Dodd-Frank.
The Republican-drafted plan to completely change the nation’s financial regulatory structure and reverse numerous conditions of the Dodd-Frank Wall Street Reform as well as Consumer Protection Act is now closer to happening. Jeb Hensarling, R-TX, House Financial Services Committee Chairman made the announcement on Wednesday that the hearings will be held by the Committee to talk about the new version of the Financial CHOICE Act at 10 am Eastern on Wednesday, April 26.
Furthermore, Hensarling revealed for the first time, the complete package of the Financial CHOICE Act of 2017.
Hensarling has spearheaded the Financial CHOICE Act since last year when he unveiled another incarnation.
Under the bill, Dodd-Frank will be replaced with a “pro-growth, pro-consumer” option that would stop the bailouts of the “too-big-to-fail” institutions, introduce major changes to the Consumer Financial Protection Bureau, and give some financial institutions relief from regulations.
That bill survived the House Financial Services Committee, however it was never brought up in the House of Representatives for a full vote.
Word was spreading earlier in the year that Hensarling was planning to reintroduce the Financial CHOICE Act but in a more aggressive manner.
The financial sector got its first sneak peek at the Financial CHOICE Act 2.0 last week. It will bring major changes to the CFPB and other institutions such as the Office of the Comptroller of the Currency, National Credit Union Administration, Federal Deposit Insurance Corp. and the Federal Housing Finance Agency.
Probably one of the major modifications to the Financial CHOICE Act 2.0 bill is that the CFPB’s director could be fired at any time, instead of only for cause as it is today.
One of the fiercest battles happening right now in the financial industry is for that core provision. On one side there is the CFPB which is fighting to keep its relevancy and on the other side is the Department of Justice along with the PHH Mortgage Corp.
However, the Financial CHOICE Act 2.0 isn’t just looking to shake up the CFPD’s leadership structure; it is seeking to alter the agency’s mission too.
The supervisory component of the CFPB would be completely eliminated in the bill’s new version.
As outlined in the summary of the CHOICE Act 2.0, the CFPB will possess the authority to enforce “enumerated consumer protection laws only,” without having UDAP (Unfair, Deceptive or Abusive Acts and Practices) authority.
Furthermore, the controversial consumer complaint database previously published by the CFPB will be eliminated.
Hensarling stated that Republicans are excited to work with President Trump to terminate and replace the Dodd-Frank blunder with the Financial CHOICE Act since it keeps Wall Street and Washington responsible, stops taxpayer-funded financial institution bailouts, and unleashes America’s economic possibilities.
Furthermore, he said we are looking for economic opportunities for everyone, bailouts for no one. We are seeking true consumer protections which will provide you with many more options. Our approach will grow the economy from Main Street up, generates additional options for working families to be successful, and gives equal opportunities to all and eliminating Wall Street bailouts.
Hensarling’s office announced the hearing dates, released a summary of the bill along with the bill’s full version discussion.
As outlined by Hensarling’s office, the Financial CHOICE Act will provide “accountability” to both Wall Street and Washington, D.C.
Hensarling’s office said The Financial CHOICE Act carries the harshest punishment in history for anyone who commits financial scams and insider trading. Keeping Wall Street legally responsible with the harshest penalties ever is going to discourage corporate misconduct and protect consumers much better.
While doing so, we’ll keep Wall Street accountable, the Financial CHOICE Act holds Washington accountable too. The statement went on to say that. Very tough accountability in Washington and on Wall Street is going to preserve the credibility of our markets to ensure that they benefit everyday Americans that are working, saving and investing.
According to Hensarling, Dodd-Frank was a failure and has to be replaced.
He said Dodd-Frank supporters pledged it could boost the overall economy, stop bailouts and keep customers safe. But Americans have endured in the course of the worst recovery in the past seventy years; Dodd-Frank ensures potential bailouts for Wall Street, with consumers having to pay more while having fewer options.
Hensarling said, Dodd-Frank did not keep its promises to Americans, but we will work closely with the President to keep his promise to eliminate Dodd-Frank. He went on to say, that isn’t what Wall Street is looking for, but it is essential for hardworking Americans so that they have a healthier economy with more possibilities so they can become financially independent.