Financial laws and regulations may seem too complex and removed to have any impact on everyday life. But every American who has money in a checking or savings account, works for a small business or pays taxes has been affected by the faulty regulations put forward in Dodd-Frank, a law passed by Congress in the wake of the financial crisis.
The Financial CHOICE Act is a response to Dodd-Frank designed to help boost our economy and protect consumers from future financial meltdowns, and I was very pleased to support this bill.
Here are five ways that this new legislation could benefit your life:
• Creating more available capital for small businesses
Any startup or small business needs access to capital in order to expand its operations. But the passage of Dodd-Frank made it more difficult and more costly for small banks to give loans. The Financial CHOICE Act removes the expensive mandates from Dodd-Frank, which is predicted to free up more capital for business owners and aspiring entrepreneurs.
• Increasing access to credit cards and checking accounts for individuals and families
Under Dodd-Frank, free checking has been reduced by 50 percent. Many people have also lost the option to sign up for a credit card. When these financial options aren’t available, individuals and families have a harder time saving money, which is bad for their budget and bad for the economy as a whole.
The Financial CHOICE Act will allow small banks and credit unions to expand access to credit and checking, restoring personal freedom and financial choices back to consumers across the country.
• Eliminating regulatory burdens
Without Dodd-Frank’s regulations in place, small and medium businesses will spend less on compliance. That means there will be more money available to hire new employees, raise wages and boost the economy as a whole.
• Protecting consumers — not big banks
The Financial CHOICE Act imposes the harshest penalties in history on financial institutions that commit fraud and harm consumers. It also establishes a budget for financial regulations and requires a cost-benefit analysis for all rules so that institutions are accountable to Congress for their actions.
• Blocking taxpayer-funded bailouts
The Financial CHOICE Act definitively ends the era of “too big to fail.” Instead of taxpayer-funded bailouts for failing firms, the CHOICE Act gives the American people protection from failing banks without holding them financially responsible.
The Financial CHOICE Act is a big win for the American people. This bill brings more accountability and reliability to our financial system, allows for more choice for consumers, helps bring small businesses greater certainty and levels the playing field to help them grow and create jobs, and will help increase transparency at the Federal Reserve. I urge the Senate to quickly pass this bill so that it can have a positive impact on job growth and the economy.
Congressman Doug Lamborn serves as chairman of the Subcommittee on Energy and Mineral Resources of the House Committee on Natural Resources. He also serves on the House Armed Services Committee and House Veterans Affairs Committee. To reach him, call 719-520-0055.