Financial CHOICE Act of 2017 Passes House of Representatives
Washington, DC – Congressman Lee Zeldin (R, NY-1), member of the House Financial Services Committee, announced that the House of Representatives just passed the Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs Act, legislation he cosponsors, otherwise known as the Financial CHOICE Act of 2017 (H.R. 10).
The CHOICE Act addresses many of the harmful aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as “Dodd-Frank,” while imposing stricter accountability, ending “too big to fail” bank bailouts, increasing access to credit and capital for small businesses and individuals, and much more. CHOICE also provides necessary reforms to the Consumer Financial Protection Bureau (CFPB), created under Dodd-Frank. CFPB has resulted in increased bank fees, more expensive home loans, reduced access to capital, and other harmful effects. In addition, the Congressional Budget Office (CBO) recently reported that CHOICE will reduce the deficit by $24 billion over 10 years. Prior to the vote, Rep. Zeldin spoke on the House floor in favor of this legislation, which can be viewed here.
Congressman Zeldin said, “The 2008 housing crash wreaked havoc on our nation and hurt millions of people from all corners of our nation. Government encouraged lenders to offer mortgages beyond the buyer's means. These mortgages were inappropriately given AAA ratings. Financial institutions purchased and held too many of these loans that were not rated correctly. When homeowners started defaulting, the whole system blew up. Enter Dodd-Frank, which has resulted in big banks getting bigger, and small banks becoming fewer, all while perpetuating ‘too big to fail’. As a result of Dodd-Frank, community banks and credit unions have had to lay off employees, sell to a large firm, or just disappear altogether because they cannot afford the compliance costs. This is why JP Morgan Chase CEO Jamie Dimon calls Dodd-Frank a ‘moat’ between his large bank and the competition. At a time when some reports show that the U.S. economy is losing one community financial institution per day, reform is needed now more than ever before.
“I am proud to have supported and helped pass the CHOICE Act, critical legislation which is so important to grow our economy, roll back many of the harmful regulations seen in Dodd-Frank, and strengthen our community banks and credit unions,” Congressman Zeldin continued. “This legislation will also impose the toughest penalties for financial fraud and deception ever seen before, holding the big banks accountable and putting an end to ‘Too Big To Fail’. CHOICE will also revamp CFPB to serve as an enforcement agency, working to enforce the laws already on the books and help the average American. Consumer protection is immensely important; however, CFPB’s undue influence has actively harmed the very people it purports to help.”
“Dodd-Frank showed us that big government regulation and a one size fits all approach to the financial sector does not work for our community banks and credit unions, and it has done nothing but increase costs for both businesses and consumers. Passing CHOICE is a crucial next step to grow the American economy and unleash its full potential, and I look forward to working with my colleagues in the Senate to see this bill become law,” Congressman Zeldin concluded.