An act to create hope and opportunity for investors, consumers, and entrepreneurs by ending bailouts and Too Big to Fail, holding Washington and Wall Street accountable, eliminating red tape to increase access to capital and credit, and repealing the provisions of the Dodd-Frank Act that make America less prosperous, less stable, and less free, and for other purposes.
Jeb HensarlingAssault on Regulations
Other ways this bill is referred to
The CHOICE in the bill's name is an acronym for Create Hope and Opportunity for Investors, Consumers, and Entrepreneurs.
This bill weakens financial protections
This bill would remove several financial protections provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act and other regulations.
Gutting the Consumer Financial Protection Bureau
This bill would rename the Consumer Financial Protection Bureau (CFPB) to the Consumer Law Enforcement Agency.
The CFPB also would lose much of the authority it now has. It effectively would be limited to law enforcement, rather than having the ability to regulate "unfair, deceptive, or abusive acts and practices."
It no longer would have oversight over payday loans and arbitration agreements.
The agency also would be restructured so that the director could be removed by the president at any time. Currently, the director can be removed only for cause.
Large bank failures would do more damange
This bill would revoke several provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
It would eliminate the part of Dodd-Frank known as Title II, which provides a process to liquidate large financial companies that are close to failing without causing widespread harm to the nation's financial systems. The system proposed by the bill would be effective in a very narrow range of situations, and most likely would result in more bailouts at taxpayer expense, according to a George Washington University Law School analysis.
It also would repeal the Volcker Rule, which restricts banks from making certain speculative investments that could cause them to fail.
For more on the possible effects of these provisions, read this New York Times article.
Brokers would no longer need to act in your best interests
The bill would revoke the Obama administration's Fiduciary Rule, which requires retirement investment advisers to act in their clients' best interests.
"Assault on Regulations" bills reintroduced
This bill also re-introduces two bills that would make it much more difficult for federal agencies to enact regulations.
They are...
o The Regulatory Accountability Act, which would require an agency to examine a multitude of other options and choose the least costly one - even if that option would not achieve the regulation's intended goal.
Both standalone versions of these bills have passed the House but are being stalled in the Senate due to a filibuster.
For more, read our Assault on Regulations discussion.