Washington, D.C. — Today, the House Financial Services Committee passed, on a party-line vote, Chairman Jeb Hensarling’s (R-TX) Financial CHOICE Act. Marc Jarsulic, Vice President for Economic Policy at the Center for American Progress, released the following statement:
The Financial CHOICE Act is the right choice only for Wall Street bankers. It is the wrong choice for consumers, investors, and financial stability, prioritizing Wall Street’s profit motives over the safety and soundness of the U.S. economy. It shows a blatant disregard for the painful lessons learned during the 2007–2008 financial crisis, which cost the U.S. economy 8.6 million jobs, 10 million homes, and $19 trillion in wealth. Since financial reform safeguards were put in place by the Dodd-Frank Act, bank lending has rebounded significantly, banks maintain higher loss-absorbing capital and hold more liquid assets, consumer credit costs are down, and consumers are better protected from toxic products in the financial marketplace.
The so-called CHOICE Act removes protections against taxpayer-funded bailouts, erodes consumer protections, and undercuts necessary tools to hold Wall Street accountable. Taken together with President Donald Trump’s recent executive actions on financial regulation, it is clear that this administration and the GOP-led Congress are in Washington to serve big banks and their lobbyists, instead of the American people and businesses on Main Street. It is the only rational explanation for this recklessness and willingness to imperil America’s economic future.
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For more information or to speak with an expert, contact Allison Preiss at [email protected] or 202.478.6331.