State Attorneys General Oppose Proposed Repeal Of Dodd-Frank, Including PA's

The House today passed the Financial Choice Act by a mostly party line vote of 233 to 186 (one Republican, Rep. Walter Jones of North Carolina, voted against).

"The CHOICE Act allows Congress to clarify that regulatory agencies derive their powers from the legislative branch", said R Street Outreach Manager Clark Packard. The goal is to cut through the bureaucratic red tape that the new bill's supporters claim is stifling the growth of small businesses and limiting risk-taking. He said it was unlikely that changes to the CFPB would make it into any bill that would pass.

Congressman Scott Tipton (CO-03) voted in support of the Financial Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs (CHOICE) Act (H.R. 10), on Thursday, a bill that would reform the financial regulatory system in the face of the slowest economic recovery the USA has experienced in 70 years.

The Republican-led House approved sweeping legislation Thursday to undo much of former President Barack Obama's landmark banking law created after the 2008 economic crisis that caused millions of Americans to lose their jobs and homes. But the legislation has been widely contested by those who claim its regulations are overreaching and weigh heavily on smaller institutions. We're a small community bank and it puts us to more compliance issues.

"It is bad for consumers, it is bad for investors, and it's bad for the stability of the American economy - which is bad for all of us", said Lisa Donner, executive director of Americans for Financial Reform.

In addition, the bill would weaken the Consumer Financial Protection Bureau, a GOP target since its inception in 2010.

While former Federal Bureau of Investigation director James Comey's testimony gripped most of the nation, Republicans voted to repeal a significant piece of Obama-era banking legislation.

Minority lawmakers also argue Hensarling's bill would gut consumer protections and allow banks to make risky investments that required taxpayers to come to the rescue of the nation's largest financial institutions nearly a decade earlier.

"I still think he has high hopes of putting together a companion legislation", said Hensarling.

In debate as the vote neared, House Speaker Paul Ryan, R-Wis., said the bill would help community banks help their local economies. The Dodd-Frank provision championed by former Federal Reserve Chairman Paul Volcker is meant to keep banks from taking gambles that could lead to a government bailout.

The American Bankers Association applauded the House vote, saying the bill would "fix financial rules that are holding back the US economy, and doing little to enhance safety and soundness". Hensarling, a Texas Republican, said another option is breaking his legislation up and trying to pass specific provisions independently. "Don't put them back in charge".

  • Zachary Reyes