Dodd-Frank Rollback Bill Could Result in Financial Disaster … AGAIN!

Today, at the only scheduled committee hearing to review Chairman Hensarling’s Wrong Choice Act 2.0, a bill that would destroy the most important parts of the Dodd-Frank Wall Street Reform and Consumer Protection Act Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, gave the following opening statement:

There is only one explanation for why we are here discussing yet another dead-on-arrival version of the Wrong Choice Act. It must be that the foreclosure crisis and the Great Recession somehow weren’t enough for the Majority, and so they irrationally want to clear the way for round two.

I want to be very clear for anyone who is watching – that is exactly what this bill would result in. The Wrong Choice Act thoroughly dismantles Wall Street reform, guts the Consumer Financial Protection Bureau, and takes us back to the system that allowed risky and predatory Wall Street practices and products to crash our economy.

During the Great Recession, because of the actions of reckless financial institutions, Americans lost $13 trillion in household wealth, 11 million Americans lost their homes, and the unemployment rate climbed to 10 percent. The impact was widespread and harmful to all. The Wrong Choice Act paves the path back to that kind of economic ruin, by rolling back the critical safeguards we put in place in the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect American consumers, investors, and the economy.

Today, we have sensible Dodd-Frank rules and the Consumer Financial Protection Bureau to prevent financial institutions from peddling toxic products or abusing hardworking American consumers. Since its creation, the Consumer Bureau has returned nearly $12 billion to more than 29 million consumers who have been ripped off by financial institutions. With this financial cop on the beat, and with important rules of the road in place, Wall Street reform has worked.

Since Dodd-Frank’s passage, the economy has created 16 million jobs over 85 consecutive months and business lending has increased 75 percent. Banks large and small are posting all-time record profits, community banks are outperforming larger banks, and credit unions are expanding their membership. But here we are, and even though Wall Street Reform has made them safer, and they are raking in profits, that’s not enough for the banks. They want to go back to the bad old days of fewer protections. And they have shamelessly undertaken a full court press to get a long wish list of giveaways, most of which have been compiled in this bill.

Democrats are going to fight against it, and stand up for Main Street. This bill must not become law. There is too much at stake for consumers and for our whole economy.

Today, at the only scheduled committee hearing to review Chairman Hensarling’s Wrong Choice Act, House Financial Services Committee Democrats, led by Ranking Member Maxine Waters (D-CA), submitted a letter to the Chairman requesting an additional hearing in order to thoroughly analyze how the legislation would impact consumers, investors, and the American economy.

“Following the worst financial crisis since the Great Depression, this Committee held 41 public hearings related to financial reform prior to the passage of the House version of the Dodd-Frank Wall Street Reform and Consumer Protection Act,” the lawmakers wrote. “Mr. Chairman, while Democrats may not always agree with your policy proposals, we should all agree that the American public deserves nothing less than full transparency, accountability, and debate of the matters before this Committee.”

In the letter, the Democratic Members urged Chairman Hensarling to schedule at least one additional hearing given the scope and extent of the proposed legislative changes. The lawmakers stressed that Committee Members deserve an opportunity to comprehensively examine the effects of the legislation on the American economy.

The letter was unanimously signed by every Democratic Member of the House Committee on Financial Services. For more on how Chairman Hensarling’s legislation is the Wrong Choice for America, click here.

The full text of the letter is below:

April 26, 2017

Representative Jeb Hensarling
United States House of Representatives
Financial Services Committee
2129 Rayburn House Office Building
Washington, DC 20515

Dear Chairman Hensarling:

In accordance with Clause 2(j)(1) of Rule XI of the Rules of the House, and Clause (d)(5) of Rule 3 of the Rules of the Committee on Financial Services, we write to notify you of our intent to call witnesses selected by the Democrats to testify on the Financial CHOICE Act of 2017 discussion draft at a hearing separate from the Majority’s hearing on April 26, 2017. Holding this hearing, also known as a “minority day hearing” will provide Democratic members of the Committee and the American public the opportunity to further examine your legislation and its potential effects on consumers and investors all across the country.

Given the scope and extent of the proposed legislative changes in the discussion draft, ranging from capital markets, banking, consumer protection, investor protection, financial stability, insurance, and monetary policy, it is critical that multiple hearings be convened to allow diverse and comprehensive testimony on these topics before the Committee marks up the measure. Our constituents and the American public deserve a thorough vetting of this nearly 600-page bill, which has the potential to significantly change our economy.

Convening multiple hearings to solicit testimony representing a broad set of viewpoints is not without precedent in this Committee. Following the worst financial crisis since the Great Depression, this Committee held 41 public hearings related to financial reform prior to the passage of the House version of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Mr. Chairman, while Democrats may not always agree with your policy proposals, we should all agree that the American public deserves nothing less than full transparency, accountability, and debate of the matters before this Committee. That is why Democrats will exercise our right to hold a minority day hearing on the Financial CHOICE Act discussion draft and we look forward to working with you to determine the date, time, and place of such hearing.

Sincerely,