Washington – Congressman Frank Lucas (OK-3) released the following statement today after voting for passage of the Financial CHOICE act, a bill to promote economic growth and stability by providing regulatory relief for smaller banks and credit unions while imposing stricter requirements and penalties on the largest financial institutions:
“In the aftermath of the 2008 financial crisis, 401k’s tumbled, home foreclosures skyrocketed, and many employers were forced to cut back. Soon after, Democrats moved to vastly increase federal control over the financial industry. At over 2,300 pages, the Dodd-Frank Act represents one of the most widespread restructurings of our nation’s finance and banking sector in history, consolidating an incredible amount of power into the hands of unelected and unaccountable bureaucrats.
“While the largest banks on the east and west coasts were equipped to handle the deluge of paperwork, a number of smaller, community banks simply couldn’t keep up, spending thousands of dollars to send staff to compliance classes just to follow the pages upon pages of new rules and regulations.
“It’s no surprise that toward the very end of President Obama’s final year in office that our country remained in one of the weakest economy recoveries in American history. The Dodd-Frank Act tied the hands of banks, reducing the availability and increasing the cost of credit. Small businesses, entrepreneurs, and families looking to purchase a home or vehicle were left with fewer options.
“This week, I’m proud to join my colleagues in taking action to begin unwinding Dodd-Frank’s rules and regulations that have held back economic growth for too long. The Financial CHOICE Act provides smaller banks with regulatory relief so that they can return to serving their communities. This legislation also promotes financial stability by ending bailouts for large financial institutions and introducing harsh penalties for fraudulent activity.
“Passage of the Financial CHOICE Act marks a significant shift away from Obama-era, top-down overregulation and recognizes the importance of small businesses to the success of our economy. It’s time to restore economic opportunity and job creation on Main Street and restore accountability on Wall Street.”
The Financial CHOICE Act proposes a series of financial services reforms including:
- Ending “too big to fail” bank bailouts by repealing aspects of Dodd-Frank
- Lifting regulatory burden off smaller financial institutions such as community banks
- Restructuring and increasing oversight of the CFPB (Consumer Financial Protection Bureau) by moving the agency to the Executive Branch and making it subject to Congressional oversight
- Implementing harsher penalties on Wall Street for corruption and fraud
- Repealing the Volcker Rule, which limits capital formation and hinders investment