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House Approves Financial CHOICE Act In Major Step to Repealing Dodd-Frank

bank-of-america_theridgewoodblog

June 9,2017

the staff of the Ridgewood blog

Washington DC, The House on Thursday passed the Financial CHOICE Act, legislation to overhaul and replace the failed Dodd-Frank Act that has contributed to the worst economic recovery of the last 70 years.“Every promise of Dodd-Frank has been broken,” said Financial Services Committee Chairman Jeb Hensarling (R-TX), as he read letters from Americans about how they were declined home, automobile and small business loans due to Dodd-Frank’s burdensome regulations.  “Fortunately there is a better, smarter way.  It’s called the Financial CHOICE Act.  It stands for economic growth for all, but bank bailouts for none.  We will end bank bailouts once and for all.  We will replace bailouts with bankruptcy.  We will replace economic stagnation with a growing, healthy economy,” he said.

“We will make sure there is needed regulatory relief for our small banks and credit unions, because it’s our small banks and credit unions that lend to our small businesses that are the jobs engine of our economy and make sure the American dream is not a pipe dream,” said Chairman Hensarling.

CHOICE, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, has received strong support from community banks and credit unions.  Large financial institutions did not offer their support for the Financial CHOICE Act.  Instead, Wall Street CEOs have publicly said they do not support repealing Dodd-Frank.

The Congressional Budget Office reports the Financial CHOICE Act would reduce the deficit by $33.6 billion over 10 years and that the bill’s regulatory relief would benefit community banks and credit unions.  The nation’s largest banks would be unlikely to raise enough capital to meet the bill’s requirement for substantial regulatory relief, the CBO reported.

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts:  that’s at the core of the Financial CHOICE Act. With changes to the bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading.  Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time the Financial CHOICE Act holds Wall Street accountable, it also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.

STRONGLY CAPITALIZED BANKS

Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size.  That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.

The Financial CHOICE Act is based on two important principles:  First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis.  Of the miniscule percentage that did fail, none posed a systemic risk.

EMPOWER AMERICANS

The Financial CHOICE Act grows our economy from Main Street up.  Dodd-Frank tries to control the economy from Washington down.  The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth.

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Wyckoff Democrat launches campaign against Scott Garrett, Bailouts ,Bailouts and More Bailouts

Joshua S

February 8,2016

the staff of the Ridgewood blog

Wyckoff NJ, Former White House speechwriter  officially will seek to oust U.S. Rep. Scott Garrett (R-5th Dist.) with an announcement Monday afternoon in Northvale. U.S. Sen. Cory Booker (D-N.J.) is scheduled to be there as well.

The Wyckoff Democrat Gottheimer is a former speech writer for President Bill Clinton and worked in corporate strategy for Microsoft. He grew up in North Caldwell and has lived for the past four years in Wyckoff with his wife and two children.

“Scott Garrett isn’t pro-family,” Gottheimer said. “He’s not pro-business. He’s Dr. No. Dr. No to everything, and that hurts families here in New Jersey.”

So what is Josh Gottheimer for ? In one word BAILOUTS!

At a September possible Democratic candidate Gottheimer fundraiser that came less than a week after James Cicconi, the RINO Republican head of external affairs at AT&T Inc., and JPMorgan Chase & Co.’s Peter Scher hosted another one for the Democrat.Attendees included executives from Blackstone, Comcast, Verizon, McGraw Hill, U.S. Telecom Association, Tribune Media, United Health, Ogilvy & Mather, Raben Group and Akin Group. The invitation for the event had said it was “an excellent opportunity to oust one of the most conservative members of the House of Representatives.”

Bloomberg News, which was the first to report plans for the Cicconi fundraiser, said some business executives had already been growing tired of Garrett. They were apparently bothered by his vote against big spending former Speaker John Boehner,and were troubled that he has opposed the crony driven , taxpayer funded corporate welfare,  Export-Import Bank.

Garret also strongly opposes bailouts and in 2010 said , “The American people are tired of the safety net that has been provided to Wall Street. They want to put an end to the continued bailouts, and the bill currently under consideration in the Senate fails to accomplish this task. Wall Street is not afraid of this bill – as a matter of fact, Goldman Sachs, the same bank that has been charged by the SEC with fraud — and which also happens to have been President Obama’s single largest corporate donor in 2008 — has endorsed much of it. Goldman supports the bill because they know that it gives them and others an advantage in the marketplace by allowing their shareholders and creditors to be bailed out if they get into trouble because of the risks they take. …. We must end the era of bailouts and stop rewarding banks like Goldman Sachs with regulation that fails to protect American taxpayers.”

This stand against corporate bailouts and industry sponsored Dodd Frank has made Garrett unpopular in certian parts of the business community . In 2011 Garrett issued a strongly worded statement on Dodd Frank and the institutionalized “too big to fail policy”  , “In the wake of the financial crisis of 2008, Democrats insisted that more regulation was the answer to our problems and that they had the right prescription to address the ailments of our financial system.  As it turns out, the 2,000 page bill they produced was not the right solution.  One year after it was signed into law, Dodd-Frank has done little to prevent another financial collapse, it has failed to streamline and simplify regulation, and it has actually codified ‘too big to fail’ and taxpayer bailouts into statute.  When the American people asked for limited government, less burdensome regulation, debt reduction and, most importantly, job creation, this was hardly the solution they had in mind.”