Yesterday, speaking to the Economic Club of New York, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) revealed his Financial CHOICE Act to oust the Dodd-Frank Act. He called Dodd-Frank “a grave mistake Washington foisted upon the American people nearly six years ago,” further stating, “We need economic growth for all and bank bailouts for none.”
Hensarling said big banks continue to grow, while small banks are vanishing, attributing that change to more banking assets “concentrated in the so-called ‘Too Big to Fail’ firms.”
But many believe Hensarling’s proposal is too big to succeed with its sweeping changes, some of which are in the best interest of credit unions.
“We are losing, on average, one community financial institution each day – and they are not dying from natural causes but from the sheer weight, volume, complexity, and expense of Washington’s rules. So our plan requires financial regulators to tailor regulations so they fit a bank or credit union’s business model and risk profile,” Hensarling said. “This allows America’s small, hometown banks and credit unions to focus their time and resources on serving their customers rather than the dictates of Washington bureaucrats. Our plan provides for the timely release of exam reports, creates a mechanism for institutions to appeal exam findings without fear of bureaucratic retaliation, and creates an extended 18-month exam cycle for certain credit unions.”
Hensarling calls his plan the Republican Financial CHOICE Act, which stands for Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs. It also aims to restructure financial regulatory agencies presently headed by single directors – the CFPB, the Office of Comptroller of the Currency, and the Federal Housing Finance Agency – into bipartisan commissions.