Posted On April 13, 2017
Nearly seven years have passed since the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted, and now the House Financial Services Committee is drafting proposed changes. A memo reportedly from the committee’s chairman Rep. Jeb Hensarling details the potential changes in the Financial Choice Act 2.0.
In CHOICE Act 1.0, the House Financial Services Committee proposed leadership changes and restructuring for several government agencies including the Consumer Financial Protection Bureau (CFPB), the Federal Housing Finance Agency (FHFA), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA).
The CHOICE Act 2.0 revises many proposed changes, including eliminating any changes to the OCC and NCUA. In the CHOICE Act 2.0, the FHFA director would be removable by the president, and the FDIC structure would be reorganized as a bipartisan commission with five commissioners appointed by the president. Additionally, the CFPB would be redesigned as the Consumer Financial Opportunity Agency, with a sole director and deputy director appointed and removable by the president.
In an address on Tuesday to a group of chief executives, President Trump revisited Dodd-Frank reform, stating, “For the bankers in the room, they'll be very happy because we're really doing a major streamlining and, perhaps, elimination, and replacing it with something else.”
Any sweeping change to the law would require substantial time to earn approval and delineate changes. Financial institutions have spent significant time and money to achieve compliance with Dodd-Frank regulations and because of this congressional action toward reform and revision is not expected to happen right away.