Washington, DC – Today, the U.S. House of Representatives took another large step in its ongoing regulatory relief efforts by passing H.R. 10, the “Financial CHOICE Act,” which among other things, significantly reins in policies implemented by the Dodd-Frank Act. While originally presented as a safeguard against future economic crises, the Dodd-Frank Act instead codified the idea that certain financial institutions were “too big to fail” and made them even bigger while placing unsustainable regulatory burdens on America’s community banks and credit unions – the lifeline for small business owners, entrepreneurs, and economic growth across the country. The “Financial CHOICE Act” not only offers smaller lending institutions an off-ramp from the Dodd-Frank policies hindering their ability to serve America’s risk-takers and small businesses, it also directly prohibits the practice of taxpayer bailouts. U.S. Representative Rob Woodall (GA 07) praised the measure as a victory for American workers and job-creators alike.
“Whether in financial matters, health care, or more, consumer choice is crucial to a healthy economy. Irrespective of intent, the Dodd-Frank Act debilitated Main Street rather than defend it, and it resulted in fewer financial choices for American workers and businesses,” said Woodall. “It made the federal government larger and the small business owner smaller. To the tune of one per business day – including some right here at home – Dodd-Frank has driven far too many local lenders to close their doors, taking with them an irreplaceable commitment to the men and women with which they share their community. We can do better, and this bill is an enormous step in that direction.”
- End taxpayer bailouts of financial institutions – and no company should be “too big to fail.”
- Accountability for both Wall Street and Washington.
- Simplicity must replace complexity.
- Economic growth must be revitalized through competitive, transparent, and innovative capital
- Every American, regardless of their circumstances, must have the opportunity to achieve financial independence.
- Consumers must be vigorously protected from fraud and deception as well as the loss of economic liberty.
- Systemic risk must be managed in a market with profit and loss.
- Retroactively repeal the authority of the Financial Stability Oversight Council (FSOC) to designate firms as systematically important financial institutions (SIFIs).
- Repeal Title VIII of the Dodd-Frank Act, which gives the FSOC authority to designate certain payments and clearing organizations as systemically important “financial market utilities” (FMUs) with access to the Federal Reserve discount window, and retroactively repeal all previous FMU designations.
- Prohibit the use of the Exchange Stabilization Fund to bailout financial firms or creditors.
- Impose enhanced penalties for financial fraud and self-dealing and promote greater transparency and accountability in the civil enforcement process.
- Increase the maximum criminal fines for individuals and firms that engage in insider trading and other corrupt practices.
- Make all financial regulatory agencies subject to the REINS Act, and place them on the appropriations process so that Congress can exercise proper oversight. (Exception: Fed monetary policy.)
- Impose an across-the-board requirement that all financial regulators conduct a detailed economic analysis of all proposed and final regulations to ensure the costs imposed are outweighed by the benefits.
- Repeal sections and titles of the Dodd-Frank Act, including the Volcker Rule, that limit or inhibit capital formation.
- Incorporate almost two dozen Committee or House-passed capital formation bills, including:
- H.R. 79 – “Helping Angels Lead Our Startups Act” (115th)
- H.R. 910 – “Fair Access to Investment Research Act” (115th)
- H.R. 1219 – “Supporting America’s Innovators Act” (115th)
- H.R. 1312 – “Small Business Capital Formation Enhancement Act” (115th)
- H.R. 3868 – “Small Business Credit Availability Act” (114th)
Congressman Woodall represents the Seventh Congressional District of Georgia, which includes the majority of Forsyth and Gwinnett counties, and currently serves as Chairman of the Rules Subcommittee on Legislative and Budget Process, as well as serving on the Transportation & Infrastructure Committee, and Budget Committee.