“Financial Choice Act” Is a Wall Street Giveaway and the Wrong Choice for Working Families

Statement: House Financial Services Committee Hearing on Rep. Hensarling’s Wall Street-Backed Bill


WASHINGTON, D.C. – This morning, the House Financial Services Committee met to discuss 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 financial crisis caused by Wall Street fraud and recklessness.

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. Surprisingly, the legislation even rolls back important protections that pre-date the financial crisis.

“The ‘Financial CHOICE Act’ is a Wall Street giveaway that guts basic consumer protections and rewards the bankers and hedge fund managers who have given millions to Rep. Hensarling and members of the House Financial Services Committee that he chairs,” said Karl Frisch, executive director of Allied Progress.

He continued, “Hensarling’s bill will take us back to the financial Wild West, erasing protections that even predate the financial crisis, and allowing Wall Street and predatory lenders to run amok again. By almost entirely eliminating the powers of the CFPB to act forcefully against unfair, abusive, and predatory practices in consumer lending, the ‘Financial CHOICE Act’ is the wrong choice for America’s working families.”

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.

Today’s hearing featured testimony from witnesses hand-picked by Rep. Hensarling, each of whom has extensive ties to Wall Street and the financial industry.

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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