Michigan congressmen divided on Financial CHOICE Act

Saturday, 10 Jun, 2017

Enacted in the wake of the 2008 financial crisis, and created to prevent another meltdown, Dodd-Frank has been a Republican target since it was signed into law seven years ago.

The bill, called the CHOICE act, was approved by a vote of 233-to-186. Senators have said they'll spend the next few months trying to find common ground on legislation created to boost the economy.

"Singling out a few large insurance companies for redundant regulation harms competition, leads to higher prices and less financial protection for consumers, and fails to make the financial system safer", Kandarian said.

Republican supporters of the bill claim Dodd-Frank stifles small business and the domestic economy with too much regulation.

A major component of the House-passed bill would give small banks an escape from complying with the complex Dodd-Frank rules that attempt to stop banks from taking on too many risky investments. Though the bill is expected to face significant opposition in the Senate, its passage is the surest sign yet that Republicans are serious about rolling back Obama era regulations that force banks to spend more time (and money) dealing with government imperatives. The bill would eliminate numerous provisions of the Dodd-Frank Act that tightened rules on banks in an effort to ward off another financial crisis.

"Today, House Republicans are pushing a unsafe Wall Street-first - Wall Street-first, that's who they are - bill that would drag us back to the days of the Great Recession", House Minority Leader Nancy Pelosi said at a press conference. Instead, the bill would let banks fall under an expanded part of bankruptcy law.

The measure does not contain a repeal of Dodd-Frank's limits on debit card swipe fees, a provision removed after it became clear that it put the entire bill at risk of failing to garner enough votes.

In addition, the bill would weaken the Consumer Financial Protection Bureau, a GOP target since its inception in 2010.

Trump's administration has taken multiple steps since January targeting regulations contained in Dodd-Frank - including a resolution in February to scrap another Dodd-Frank regulation meant to increase transparency and reduce corruption.

"We see free checking cut in half at bank".

Last month, Senate majority leader Mitch McConnell laid out the hard task ahead by saying he's pessimistic Congress will revamp Dodd-Frank anytime soon. "For many credit-worthy borrowers, they are paying $500 more for an auto loan".

The proposed legislation takes aim at the current law's restrictions on financial institutions, by qualifying those that meet capital and liquidity requirements for regulatory relief. Have you tried getting a mortgage recently?

It would also repeal rules that restrict banks from speculative trading.

Financial reform advocates argue the Choice Act would leave the US economy vulnerable to another financial crisis.

Rep. Jeb Hensarling, R-Texas, chairman of the House Financial Services Committee, said "Every promise of Dodd-Frank has been broken".