Hensarling’s CHOICE: “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs” | Citizens Against Government Waste

Hensarling’s CHOICE: “Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs”

The WasteWatcher

With his newest catch-phrase, “Economic Growth for All, and Bank Bailouts for None,” House Financial Services Committee Chairman Jeb Hensarling (R-Texas) unveiled the key principles underpinning his proposal to replace the Dodd-Frank Act with “real reforms that work,” in a speech earlier today to the Economic Club of New York.

The following represent the key principles of the “Financial CHOICE Act,” to be introduced as legislation in the near future:

1.       Economic growth must be revitalized through competitive, transparent, and innovative capital markets;

2.       Every American, regardless of their circumstances, must have the opportunity to achieve financial independence;

3.       Consumers must be vigorously protected from fraud and deception as well as the loss of economic liberty;

4.       Taxpayer bailouts of financial institutions must end and no company can remain too big to fail;

5.       Systemic risk must be managed in a market with profit and loss;

6.       Simplicity must replace complexity, because complexity can be gamed by the well-connected and abused by the Washington powerful; and

7.       Both Wall Street and Washington must be held accountable.

Appearing on CNBC, Chairman Hensarling noted that Dodd-Frank has failed:  the large “too big too fail” banks are even larger, while smaller community banks are even fewer.  Under the CHOICE Act, there will be no more taxpayer bailouts of the large financial institutions (still a possibility under the current Dodd-Frank regime), while strong capital requirements will relieve “growth-strangling” regulation, according to the Texas congressman.