I thank the gentlewoman for her leadership and for yielding. Mr. Speaker, I rise today in strong opposition to H.R. 10, the ``Wrong'' CHOICE Act. This bill will take us back to the regulatory stone age and would be a disaster for the…
I thank the gentlewoman for her leadership and for yielding.
Mr. Speaker, I rise today in strong opposition to H.R. 10, the ``Wrong'' CHOICE Act.
This bill will take us back to the regulatory stone age and would be a disaster for the entire financial system.
Let us remember why we passed Dodd-Frank: we confronted the worst financial crisis, caused by mismanagement from the financial industry, that cost this country $18 trillion in household wealth, millions lost their homes, millions lost their jobs, and the suffering was deep and strong.
First, this bill, the ``Wrong'' CHOICE Act, would repeal the orderly liquidation authority, which is the only tool that would allow large financial institutions like Lehman Brothers or AIG to be wound down safely, without requiring a taxpayer bailout or causing a financial panic, like Lehman.
We had two choices in the crisis: either bail them out--a bad choice--or let them fail--another bad choice.
The liquidation authority is helpful, yet the majority claims that the liquidation authority codifies taxpayer bailouts. Nothing could be further from the truth. Under the liquidation authority, the FDIC wipes out the firm's shareholders, imposes losses on the firm's creditors, fires the firm's management, and completely liquidates the entire firm. The only people who are guaranteed not to suffer losses are the taxpayers.
So if we wipe out this protection to the taxpayers, we are putting the taxpayers in harm's way yet again.
This bill would also devastate investors by rolling back decades of investor protections and trampling on the property rights of shareholders by making it virtually impossible for them to influence the management of the companies that they own.
Finally, the bill would completely gut the Consumer Financial Protection Bureau, which has been an incredible, effective watchdog for consumers and has protected the consumers who were often not thought about first of all or second of all--or not thought about at all. This agency protects them. If we would have had it, we would not have had the financial crisis we suffered. This would just make it easier for banks like Wells Fargo to rip off consumers and would protect them from being punished if they are caught.
So I want to point out that the Republican ``Wrong'' CHOICE Act puts Wall Street ahead of Main Street, leads to taxpayer bailouts for big banks, guts consumer protections for seniors and their families, and brings back risky practices that caused the 2008 financial crisis. It is the wrong direction, it is a wrong vote, and I caution my friends on the other side of the aisle the voters are going to remember this vote. Don't turn us back to the Stone Age of regulation.
I urge a very strong ``no'' vote on this wrongly directed ``Bad'' CHOICE Act.