Financial CHOICE Act Garners Sufficient Votes in House Vote
- Author: Leroy Wright Jun 11, 2017,
Jun 11, 2017, 23:51
(One Republican voted against; not a single Democrat voted in favor.) The legislation essentially guts the Dodd-Frank financial regulations former President Barack Obama put in place in 2010. The bill now heads to the Senate where it's unclear if it has the votes needed to reach President Donald Trump's desk.
It also eases numerous regulations called for under the Obama administration's 2010 financial reform law, known as Dodd Frank. The GOP measure aims to lighten federal regulation of banks and also to sap the power of the Dodd-Frank-created Consumer Financial Protection Bureau, which it calls a "rogue agency".
"This partisan, risky legislation would once again leave families, seniors, and servicemembers at the mercy of predatory lenders, and put taxpayers back on the hook to pay for Wall Street's greed and recklessness, " said a statement from Brown.
The Republican bill would take away the consumer bureau's ability to monitor financial firms to ensure they are following laws, a key part of Dodd-Frank, the Los Angeles Times reported.
The legislation is the brainchild of House Financial Services Committee Chairman Jeb Hensarling, R-Texas.
They consider the Financial Choice Act to be the solution.
"While Dodd-Frank is not ideal, and amendments would be appropriate, this bill, the so-called Financial Choice Act, is an over-the-top wash away of the protections Dodd-Frank gave this country", Cartwright said in a statement.
The Act still needs to be passed by the Senate where support for it is less clear given greater Democratic representation than in the House.
Republicans have chafed at the existence of Dodd-Frank since it passed in 2010.
Pelosi said the financial crisis of 2008 led to over 10 million Americans losing their homes and that the Financial Choice Act would put Americans back at risk of predatory practices. Under Dodd-Frank, bank fees and mortgage fees have increased; big banks have become even bigger, driving smaller community banks out of business; and higher lending costs have further slowed economic recovery, resulting in the slowest and weakest economic recovery in 70 years.
The non-partisan Congressional Budget Office estimated that the bill would reduce federal deficits by $24.1 billion over the 2017-2027 period. It stops big banks from getting bigger while providing relief to small community banks, and it gives working people a chance to pursue their financial goals and new economic opportunities.