Get ready: Congress fires up Dodd-Frank, CFPB overhaul
April 20th, 2017
The Dodd-Frank doomsday clock just ticked a little closer to midnight.¬†
The Republican-crafted plan to overhaul the country¬ís financial regulatory system and overturn many¬†provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act is now one step closer to becoming a reality, as House Financial Services Committee Chairman Jeb Hensarling, R-TX, announced Wednesday that the Committee will hold a hearing to discuss the updated version of the Financial CHOICE Act on Wednesday, April 26 at 10:00 a.m. Eastern.
And for the first time, Hensarling revealed the full version of the Financial CHOICE Act of 2017.
Hensarling is the shepherd of the Financial CHOICE Act, having first introduced a different version of the act last year.
The bill aimed to replace Dodd-Frank with a ¬ďpro-growth, pro-consumer¬Ē alternative that would end ¬ďtoo-big-to-fail¬Ē bailouts, bring significant reforms to the¬†Consumer Financial Protection Bureau
, and provide some regulatory relief for certain financial institutions.
That bill made its way out of the House Financial Services Committee but never came up for a full vote in the House of Representatives.
Then, earlier this year, rumors began to circulate that Hensarling planned to reintroduce a more aggressive version of the¬†Financial CHOICE Act. ¬†
Last week, the financial industry got its first look at the Financial CHOICE Act 2.0, which would bring serious changes not only to the CFPB, but to the Federal Housing Finance Agency
, the¬†Office of the Comptroller of the Currency
,¬†Federal Deposit Insurance Corp.
¬†and the¬†National Credit Union Administration
One of the main changes of the Financial CHOICE Act 2.0 (previewed here) is that under the bill, the director of the CFPB would be fireable at will, rather than for cause only, as it stands now.
That provision is at the core of one the biggest legal battles in the financial industry right now, with the CFPB on one side, defending its authority and reason for existing, and PHH Mortgage Corp.
¬†and the Department of Justice
on the other side.
But the Financial CHOICE Act 2.0 wouldn¬ít just change the leadership structure of the CFPB, it would also change the agency¬ís entire mission.
Under the new version of the bill, the CFPB¬ís supervisory authority would be eliminated entirely.
Per the ¬†