Introduction of the Financial CHOICE Act
I released the following statement after the introduction of a discussion draft of the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act:
There are principles incorporated into the Financial CHOICE Act that will make a positive impact on the lives of every American consumer. This legislation would create an environment in which competition and consumer choice can rule the markets instead of the government picking winners and losers. This is done in part through high capital requirements that make financial institutions more resilient and stable. In return for these higher capital requirements, financial institutions would be subject to much lower government involvement. This ensures that the American people are protected, but that banks are not being micromanaged from Washington.
I applaud the hard work that has been done to make the Financial CHOICE Act a viable alternative to the disastrous Dodd-Frank Act. In the wake of the financial crisis, the Democrat-controlled Congress did not adequately study the causes of the crisis and instead rushed to throw a wet blanket over our financial markets. I am proud of the work Chairman Hensarling and our Committee have done over the last several years to bring forth a strong vision for financial regulation. The Financial CHOICE Act is based on a structure that can be tested and measured. It provides all market participants with a transparent and fair structure in which to do business. I appreciate that it already has the support of many community financial institutions and leading scholars.
Finally, I am pleased the Financial CHOICE Act incorporates two of my legislative priorities – CFPB leadership reform and the repeal of debit swipe fee price caps. H.R. 1266, which institutes a five person, bipartisan commission to lead the CFPB, will ensure a balanced and politically-neutral agency that works for consumers. H.R. 5465, which repeals debit swipe fee price caps, commonly known as the Durbin Amendment, will ensure that consumers get the benefit of a competitive and innovative payments system.
Americans do not need a government-knows-best approach to handle their finances. Americans need a competitive marketplace where they are free to choose the best products to meet their needs – they need legislation like the Financial CHOICE Act that frees smaller financial institutions to compete and innovate for consumers.