U.S. Reps. Sean Duffy (R-WI) and Randy Neugebauer (R-TX) backed a discussion draft of legislation released on Monday to replace government regulation of the marketplace with consumer choice and competition.
U.S. Rep. Jeb Hensarling (R-TX), the chairman of the House Committee on Financial Services, released a discussion draft of the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act on Monday.
The bill would offset higher capital requirements for financial institutions with less government intervention in markets in an effort to ensure that taxpayers are protected without micromanaging banks.
“The Financial CHOICE Act is a substantive, commonsense alternative to President Obama’s regulatory regime which has done more to hold back economic growth and job creation than any other law,” Duffy said. “It would foster more prudent banking practices and unshackle innovators and entrepreneurs from regulatory morass. It will unclog our broken economic plumbing and put consumers back in charge rather than the government.”
Reforms that Duffy led to make the Consumer Financial Protection Bureau (CFPB) more accountable were also included in the Financial CHOICE Act.
“As the chairman of the Subcommittee on Oversight and Investigations, I’ve seen firsthand how regulators like the CFPB and the Federal Deposit Insurance Corporation show callous disregard and blatant contempt for hardworking taxpayers,” Duffy said. “That is why it’s so important that these agencies are put on budget and subject to appropriations.”
The Democrat-controlled Congress in 2010, Neugebauer added, “did not adequately study the causes” of the financial crisis and “rushed to throw a wet blanket over our financial markets” when passing the Dodd-Frank Act.
“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,” Neugebauer said. “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.”
Two initiatives led by Neugebauer — CFPB leadership reform and debit swipe fee price cap reform — were included in the discussion draft.
“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,” Neugebauer said. “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.”