Why Financial Choice Act won't replace Dodd-Frank

Author: Edward Price | Published: 13 Jun 2016

US congressman Jeb Hensarling's proposed financial reform legislation has been labelled an attempt to repeal the Dodd-Frank Act. It is unlikely to win widespread support, according to some counsel. 

Congressman Jeb Hensarling, chairman of the House Financial Services Committee, unveiled legislation designed to undo the 2010 Dodd-Frank Act. 

Speaking to the Economic Club of New York on June 7, Hensarling discussed his proposed Financial CHOICE Act, standing for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs. According to Hensarling, the Act is aimed at promoting economic growth in the US, as well as calling for systemic risk to be managed through market discipline rather than regulatory structures. For the latter, the Act of course takes aim at Dodd-Frank.

"When they voted for it, supporters of Dodd-Frank told us it would promote financial stability, end Too-Big-To-Fail, and lift the economy. None of this has come to pass," said...