House Financial Services Committee Chairman Jeb Hensarling is leading a Republican effort to undo Dodd-Frank regulations that have hamstrung the financial industry and small businesses.
Have you noticed that free checking accounts are now nearly nonexistent, and locally owned stores are increasing the $5 minimum charge on debit cards? These are not the result of some financial conspiracy. They are a direct result of Dodd-Frank regulations. After the financial crash of 2008, President Barack Obama decided to increase the role of the federal government in the economy and impose massive new regulations on banks. As one might assume, this hasn’t worked out so well. Included in the over 3,500-page Dodd-Frank bill are rules restricting access to credit for investors and homebuyers, raising lending costs for entrepreneurs, and making it harder for small businesses to get capital to start or grow. Dodd-Frank also created the Consumer Finance Protection Bureau. This agency has carte blanche to create huge economic rules and regulations, and little accountability.
The bureau doesn’t have to get spending or regulation approval from anyone in Congress, and the White House has no say over who the director is, and can’t fire or put checks on the bureau’s leaders.Practically speaking, the president of the bureau has more autonomy and unregulated power to regulate than even the Treasury secretary or the IRS director. In summary, Dodd-Frank has been cited by economists as the primary reason America has had a historically slow economic recovery since 2008.
Reform Is Urgently Needed. Enter the Financial CHOICE Act (or the Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs Act), which was introduced this April by House Financial Services Committee Chairman Jeb Hensarling, R-Texas. The CHOICE Act takes positive steps forward in repealing Dodd-Frank, restoring economic stability in America, and allowing financial markets to grow and thrive.
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