Say No to the CHOICE Act and Defend Dodd-Frank Regulations
Update (6/8): The House has passed HR 10, it now heads to the Senate for consideration. The Dodd-Frank Act is a financial reform law that was passed in 2010 as a response to the Great Recession. It includes a set of regulations intended to prevent “too-big-to-fail” banks from causing another economic crisis. One critical piece of legislation under Dodd-Frank is the Volcker rule, which prohibits banks from making certain kinds of speculative investments, such as those that led to the housing market crash in 2008. The Volcker rule also limits banks in their relationships with hedge funds and private equity funds. Dodd-Frank also created the Consumer Financial Protection Bureau (CFPB), which ensures that banks, lenders, credit card corporations, and other financial companies treat their customers fairly and protect consumers from practices like predatory payday lending. House Republicans have introduced legislation known as the Financial CHOICE Act of 2017 (H.R. 10) that would repeal the Volcker rule and strip the CFPB of key enforcement powers, including the ability to fine institutions for unfair lending practices (which the CFPB recently used to fine Wells Fargo $100 million for opening 2 million accounts that their customers didn't know about). The repeal of the Volcker rule alone would increase big banks' profits by hundreds of millions of dollars a year while putting the American public at risk for another recession driven by irresponsible banking practices. "