Tipton votes to support CHOICE Act

WASHINGTON — Congressman Scott Tipton (CO-03) voted in support of the Financial Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs (CHOICE) Act (H.R. 10), on Thursday, a bill that would reform the financial regulatory system in the face of the slowest economic recovery the U.S. has experienced in 70 years.

“When the Obama Administration signed the Dodd-Frank Act in 2010, it said the law would end the too-big-to-fail phenomenon that led to a taxpayer funded bailout of big banks following the 2008 financial crisis, protect Americans from financial fraud and abusive banking practices, and hold Wall Street accountable. We got the exact opposite,” Tipton said. “Overly burdensome regulations were placed on community banks and credit unions, and without the resources to stay in compliance, small financial institutions have closed their doors while big banks are getting even bigger. Dodd-Frank has made too-big-to-fail the law of the land, and it is not good for the American people.”

The Financial CHOICE Act would increase the amount of loss-absorbing private capital a financial institution would need to seek relief from regulations. According to a 2017 report from S&P Global, the seven largest U.S. banks would have to collectively raise hundreds of billions of dollars in new equity to meet the new capital requirement and receive regulatory relief. Not only will this make banks stronger, it will also protect taxpayers from having to fund another government bailout.

Tipton’s bill, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, is included in the Financial CHOICE Act. The provision would require financial regulatory agencies to tailor regulations to fit the business model and risk profile of the financial institution, rather than continue the Dodd-Frank Act’s one-size-fits-all approach to regulating community banks and credit unions.

“As my colleagues and I have worked through the process of reforming the financial regulatory system to make it more efficient and effective, we have continued to hear from community bankers that because they are required to focus so much of their limited resources on complying with federal regulations, they are unable to fully serve the needs of their communities,” Tipton added. “As a result, community banks are not only making fewer loans to local job creators, they are closing their doors. More than 1,900 community financial institutions have disappeared since Dodd-Frank was signed into law. We must reverse this trend, and I am pleased that the TAILOR Act has passed through the House as part of CHOICE.”

Additional provisions in the Financial CHOICE Act would:

  • Impose some of the toughest penalties in history for financial fraud;
  • Reduce obstacles for small businesses seeking credit and capital in order to promote job creation;
  • Roll back regulatory taxes that are restricting families’ access to financial services like free checking accounts;
  • Ensure all financial regulators are subject to congressional appropriations and oversight;
  • Require an audit of all operations of the Federal Reserve.

The Financial CHOICE Act passed the House by a vote of 233-186. It must now be considered by the Senate.