Committee GOP Takes $32 Million from Financial Industry, Passes Hensarling’s Wall Street Giveaway “Financial CHOICE Act”

Statement: House Financial Services Committee Approves Rep. Hensarling’s Bill to Gut Consumer Protections from Wall Street Fraud and Recklessness


 

WASHINGTON, D.C. – This morning, the House Financial Services Committee advanced legislation authored by its chairman, Rep. Jeb Hensarling (R-TX), that guts protections established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, passed in the wake of the 2008 financial crisis caused by Wall Street fraud and recklessness. Hensarling suggested his Wall Street giveaway soon will be scheduled for a full vote by the House. According to the Center for Responsive Politics, Republican members of the committee have received at least $32,211,535 from the financial industry.

“The ‘Financial CHOICE Act’ is a deceptively named Wall Street giveaway that rewards the bankers and hedge fund managers who have showered Rep. Hensarling and other members of the House Financial Services Committee with tens of millions of dollars in campaign cash. Wall Street is getting what they paid for and it is hard-working Americans who will be left holding the bag,” said Karl Frisch, executive director of Allied Progress. 

He continued, “Rep. Hensarling’s ‘Financial CHOICE Act’ is so extreme it even erases protections that predate the financial crisis, allowing Wall Street and predatory lenders to once again prey on consumers without repercussion. This legislation almost entirely eliminates the powers of the Consumer Bureau to act forcefully against unfair, abusive, and predatory practices in consumer lending. It is clear the ‘Financial CHOICE Act’ is the wrong choice for working families.”

Hensarling’s deceptively titled “Financial CHOICE Act” rolls back fundamental consumer and market protections established by Dodd-Frank, including eliminating the Volcker Rule that stops banks from gambling with taxpayer money; repealing the Financial Stability Oversight Council’s (FSOC) ability to detect signs of another potential financial crisis; and gutting the Consumer Financial Protection Bureau’s (CFPB) authority to hold credit card companies, banks, payday lenders, debt collectors, and other predatory financial industries accountable. The legislation even goes so far as to roll back important protections that predate the financial crisis.

The introduction of the “Financial CHOICE Act” comes as part of a larger campaign by Wall Street-aligned special interests, industry-backed members of Congress, and the billionaire-centric Trump administration to roll back laws and regulations that safeguard hard-working American families from Wall Street greed and deception.

To speak with Karl Frisch about the so-called “Financial CHOICE Act” or other issues, please contact Tucker Middleton at 919-649-3741 or tucker@alliedprogress.org.

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Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).

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