HFSC Markup of the Financial CHOICE Act
House Financial Services Committee
Markup of the Financial CHOICE Act
Tuesday, September 13, 2016
Key Topics & Takeaways
- Approval: H.R. 5983, the Financial CHOICE Act, was approved by the Committee in a 30-26 vote.
- Republican Support:Chairman Hensarling called the Financial CHOICE Act a “better” bill that would provide “economic growth for all and bailouts for none.” He said it would ensure that “shadow regulators come out” from the dark and subject government to the will of the people, while holding Wall Street accountable with strict penalties and unleashing a wave of capital formation. He denied charges from Democrats that the bill is “all pro-Wall Street” by stating that large institutions have opposed his proposal.
- Democratic Opposition: Ranking Member Waters stated that the bill “is so bad it can’t even be fixed.” She called it a “rushed, partisan messaging tool” and stated that Democrats would not “waste any time on this” by offering amendments.
Bills Considered
- H.R. 5983, the Financial CHOICE Act
-
- An amendment in the nature of a substitute to H.R. 5983
Opening Statements
Chairman Jeb Hensarling (R-Texas), in his opening statement, stated that while Americans were told the Dodd-Frank Act would lift the economy, the U.S. has instead experienced the weakest recovery in American history. He criticized Dodd-Frank for codifying “too-big-to-fail” (TBTF) by creating the Orderly Liquidation Authority (OLA), which he claimed would force taxpayers into future bailouts.
Hensarling called H.R. 5983, the Financial CHOICE Act, a “better” bill that would provide “economic growth for all and bailouts for none.” He said it would ensure that “shadow regulators come out” from the dark and subject government to the will of the people, while holding Wall Street accountable with strict penalties and unleashing a wave of capital formation. He denied charges from Democrats that the bill is “all pro-Wall Street” by stating that large institutions have opposed his proposal.
Ranking Member Maxine Waters (D-Calif.) commented that she is “amazed” that the Committee is considering such a highly-partisan and damaging piece of legislation to “kill Dodd-Frank and harm consumers.” She said the legislation would “take us back to the summer of 2008,” and would only benefit Wall Street and special interests by repealing regulations that made banks safe and strong and replacing them with a “phony ‘choose your own regulation’ scheme.”
H.R. 5983, the Financial CHOICE Act
Hensarling offered an amendment in the nature of a substitute to H.R. 5983. The amendment was adopted in a voice vote.
RepublicanSupport
Rep. Randy Neugebauer (R-Texas) called the adoption of the Dodd-Frank Act “reactionary” and likened it to “throwing a blanket” over the financial sector. He said many of the prescriptions it offered only created new problems that have made community institutions “too small to succeed.” He credited the Financial CHOICE Act for offering a return to a strong financial system based on market principles, including its proposal to allow banks to choose higher capital in return for “less government management.”
Rep. Sean Duffy (R-Wis.) called Financial CHOICE Act a common sense set of solutions, while attacking Dodd-Frank as a “grab bag of progressive policies” that addressed issues unrelated to the financial crisis. He dismissed claims that the bill is a giveaway to Wall Street, and pointed out that more Wall Street donations have gone to Hillary Clinton, who supports the Dodd-Frank Act, than to Donald Trump.
Rep. Scott Garrett (R-N.J.) said the Dodd-Frank had failed to deliver on its three main promises: 1) ending TBTF; 2) making the economy more competitive and resilient; and 3) protecting consumers. He called the Dodd-Frank Act an “abject failure” and said it is time to pass the Financial CHOICE Act to give constituents the choices they expect as Americans.
Rep. Bill Huizenga (R-Mich.) expressed support the bill, insisting that it is supported by community banks and explaining that the proposal is about simplifying and justifying the regulatory regime.
Rep. Robert Pittenger (R-N.C.) criticized the Financial Stability Oversight Council (FSOC) and the process for designating systemically important financial institutions. He then lauded the Financial CHOICE Act for allowing banks to get regulatory relief by electing to improve their ability to absorb losses, saying this would restore market discipline and help get government “out of boardrooms.”
Rep. Blaine Luetkemeyer (R-Mo.) criticized the Dodd-Frank Act for creating a “regulatory maze” and stressed the need for transparency so American policyholders “know what is going on.” He continued that regulations have rolled downhill and are impacting small banks.
Rep. Roger Williams (R-Texas) voiced his support for the bill, explaining that it “saves” Main Street. He stressed that the Consumer Financial Protection Bureau should operate with transparency and be held accountable to taxpayers, but noted that it is instead led by one director who is able to spend money without oversight from Congress, as well as create and implement rules that it was “never intended to regulate.”
Democratic Opposition
Rep. Carolyn Maloney (D-N.Y.) said the Financial CHOICE Act is “deeply disturbing” in that it “takes us back to the regulatory stone age and would be a disaster for investors, consumers, and the entire financial system.”
Rep. Emanuel Cleaver (D-Mo.) admitted that there are mistakes in Dodd-Frank, but argued that replacing it with the Financial CHOICE Act would be “throwing out the baby with the bathwater.”
Rep. Nydia Velazquez (D-N.Y.) said the proposal does nothing to help Main Street, and cannot be taken seriously in light of recent fines levied on financial institutions.
Rep. Keith Ellison (D-Minn.) argued that the slow recovery is not the result of overregulation, but the lack of fiscal stimulus due to the obstruction of the Republican majority. He defended the Dodd-Frank Act and warned that unregulated markets led to the financial crisis.
Rep. Brad Sherman (D-Calif.) suggested that the Committee should use its time to improve statutes already in place, and he admitted that the Dodd-Frank Act is not perfect.
Rep. Bill Foster (D-Ill.) suggested that there may be some level of capital at which banks could be exempted from all oversight, but that it is certainly higher than 10 percent as proposed in the Financial CHOICE Act.
Rep. Gregory Meeks (D-N.Y.) voiced his displeasure with the bill, explaining that the legislation would “take us back to weak regulations where we hope Wall Street will behave.” He continued that the bill is a “very irresponsible and extreme proposal” that drastically deregulates the economy just six years after Dodd-Frank.
Rep. Al Green (D-Texas) referred to the legislation as the “Big Bank Bonus Bill” and criticized that the bill assumes big banks will not fail again by eliminating the requirement for living wills, which prevent failing banks from taking down the economy.
Rep. Ruben Hinojosa (D-Texas) voiced his opposition to the bill, stating that it repeals Dodd-Frank and ends consumer and market protections that helped the economy recover from the recession.
Rep. Joyce Beatty (D-Ohio) said that the bill is “wrong for consumers and the American people.” She continued that the Dodd-Frank Act has been successful “for the most part,” as the economy is safer, there are greater consumer protections, and financial regulators have been empowered with the necessary tools to ensure a “fair playing field for everyone.”
Waters closed by stating that the bill “is so bad it can’t even be fixed.” She called it a “rushed, partisan messaging tool” and stated that Democrats would not “waste any time on this” by offering amendments.
FinalVote
H.R. 5983 was approved by the Committee in a 30-26 vote.
For more information on this markup, please click here.
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House Financial Services Committee
Markup of the Financial CHOICE Act
Tuesday, September 13, 2016
Key Topics & Takeaways
- Approval: H.R. 5983, the Financial CHOICE Act, was approved by the Committee in a 30-26 vote.
- Republican Support:Chairman Hensarling called the Financial CHOICE Act a “better” bill that would provide “economic growth for all and bailouts for none.” He said it would ensure that “shadow regulators come out” from the dark and subject government to the will of the people, while holding Wall Street accountable with strict penalties and unleashing a wave of capital formation. He denied charges from Democrats that the bill is “all pro-Wall Street” by stating that large institutions have opposed his proposal.
- Democratic Opposition: Ranking Member Waters stated that the bill “is so bad it can’t even be fixed.” She called it a “rushed, partisan messaging tool” and stated that Democrats would not “waste any time on this” by offering amendments.
Bills Considered
- H.R. 5983, the Financial CHOICE Act
-
- An amendment in the nature of a substitute to H.R. 5983
- An amendment in the nature of a substitute to H.R. 5983
Opening Statements
Chairman Jeb Hensarling (R-Texas), in his opening statement, stated that while Americans were told the Dodd-Frank Act would lift the economy, the U.S. has instead experienced the weakest recovery in American history. He criticized Dodd-Frank for codifying “too-big-to-fail” (TBTF) by creating the Orderly Liquidation Authority (OLA), which he claimed would force taxpayers into future bailouts.
Hensarling called H.R. 5983, the Financial CHOICE Act, a “better” bill that would provide “economic growth for all and bailouts for none.” He said it would ensure that “shadow regulators come out” from the dark and subject government to the will of the people, while holding Wall Street accountable with strict penalties and unleashing a wave of capital formation. He denied charges from Democrats that the bill is “all pro-Wall Street” by stating that large institutions have opposed his proposal.
Ranking Member Maxine Waters (D-Calif.) commented that she is “amazed” that the Committee is considering such a highly-partisan and damaging piece of legislation to “kill Dodd-Frank and harm consumers.” She said the legislation would “take us back to the summer of 2008,” and would only benefit Wall Street and special interests by repealing regulations that made banks safe and strong and replacing them with a “phony ‘choose your own regulation’ scheme.”
H.R. 5983, the Financial CHOICE Act
Hensarling offered an amendment in the nature of a substitute to H.R. 5983. The amendment was adopted in a voice vote.
RepublicanSupport
Rep. Randy Neugebauer (R-Texas) called the adoption of the Dodd-Frank Act “reactionary” and likened it to “throwing a blanket” over the financial sector. He said many of the prescriptions it offered only created new problems that have made community institutions “too small to succeed.” He credited the Financial CHOICE Act for offering a return to a strong financial system based on market principles, including its proposal to allow banks to choose higher capital in return for “less government management.”
Rep. Sean Duffy (R-Wis.) called Financial CHOICE Act a common sense set of solutions, while attacking Dodd-Frank as a “grab bag of progressive policies” that addressed issues unrelated to the financial crisis. He dismissed claims that the bill is a giveaway to Wall Street, and pointed out that more Wall Street donations have gone to Hillary Clinton, who supports the Dodd-Frank Act, than to Donald Trump.
Rep. Scott Garrett (R-N.J.) said the Dodd-Frank had failed to deliver on its three main promises: 1) ending TBTF; 2) making the economy more competitive and resilient; and 3) protecting consumers. He called the Dodd-Frank Act an “abject failure” and said it is time to pass the Financial CHOICE Act to give constituents the choices they expect as Americans.
Rep. Bill Huizenga (R-Mich.) expressed support the bill, insisting that it is supported by community banks and explaining that the proposal is about simplifying and justifying the regulatory regime.
Rep. Robert Pittenger (R-N.C.) criticized the Financial Stability Oversight Council (FSOC) and the process for designating systemically important financial institutions. He then lauded the Financial CHOICE Act for allowing banks to get regulatory relief by electing to improve their ability to absorb losses, saying this would restore market discipline and help get government “out of boardrooms.”
Rep. Blaine Luetkemeyer (R-Mo.) criticized the Dodd-Frank Act for creating a “regulatory maze” and stressed the need for transparency so American policyholders “know what is going on.” He continued that regulations have rolled downhill and are impacting small banks.
Rep. Roger Williams (R-Texas) voiced his support for the bill, explaining that it “saves” Main Street. He stressed that the Consumer Financial Protection Bureau should operate with transparency and be held accountable to taxpayers, but noted that it is instead led by one director who is able to spend money without oversight from Congress, as well as create and implement rules that it was “never intended to regulate.”
Democratic Opposition
Rep. Carolyn Maloney (D-N.Y.) said the Financial CHOICE Act is “deeply disturbing” in that it “takes us back to the regulatory stone age and would be a disaster for investors, consumers, and the entire financial system.”
Rep. Emanuel Cleaver (D-Mo.) admitted that there are mistakes in Dodd-Frank, but argued that replacing it with the Financial CHOICE Act would be “throwing out the baby with the bathwater.”
Rep. Nydia Velazquez (D-N.Y.) said the proposal does nothing to help Main Street, and cannot be taken seriously in light of recent fines levied on financial institutions.
Rep. Keith Ellison (D-Minn.) argued that the slow recovery is not the result of overregulation, but the lack of fiscal stimulus due to the obstruction of the Republican majority. He defended the Dodd-Frank Act and warned that unregulated markets led to the financial crisis.
Rep. Brad Sherman (D-Calif.) suggested that the Committee should use its time to improve statutes already in place, and he admitted that the Dodd-Frank Act is not perfect.
Rep. Bill Foster (D-Ill.) suggested that there may be some level of capital at which banks could be exempted from all oversight, but that it is certainly higher than 10 percent as proposed in the Financial CHOICE Act.
Rep. Gregory Meeks (D-N.Y.) voiced his displeasure with the bill, explaining that the legislation would “take us back to weak regulations where we hope Wall Street will behave.” He continued that the bill is a “very irresponsible and extreme proposal” that drastically deregulates the economy just six years after Dodd-Frank.
Rep. Al Green (D-Texas) referred to the legislation as the “Big Bank Bonus Bill” and criticized that the bill assumes big banks will not fail again by eliminating the requirement for living wills, which prevent failing banks from taking down the economy.
Rep. Ruben Hinojosa (D-Texas) voiced his opposition to the bill, stating that it repeals Dodd-Frank and ends consumer and market protections that helped the economy recover from the recession.
Rep. Joyce Beatty (D-Ohio) said that the bill is “wrong for consumers and the American people.” She continued that the Dodd-Frank Act has been successful “for the most part,” as the economy is safer, there are greater consumer protections, and financial regulators have been empowered with the necessary tools to ensure a “fair playing field for everyone.”
Waters closed by stating that the bill “is so bad it can’t even be fixed.” She called it a “rushed, partisan messaging tool” and stated that Democrats would not “waste any time on this” by offering amendments.
FinalVote
H.R. 5983 was approved by the Committee in a 30-26 vote.
For more information on this markup, please click here.