Financial CHOICE Act
What is the Financial CHOICE Act?
In June 2017 US Congress passed a Republican bill that, if also approved by the Senate, will see a reduction in the restrictions imposed on Wall Street following the 2008 crash.
The Financial CHOICE Act is an acronym for Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs Act.
Where have you heard about the Financial CHOICE Act?
The Financial CHOICE Act has made headlines around the world as, if the controversial legislation is enacted, it will undo many of the safety measures introduced in the Dodd-Frank Act 2010, created to ensure the global financial crash of 2008 couldn’t happen again.
What you need to know about the Financial CHOICE Act.
The Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 introduced the biggest changes to financial regulation in the US since the Great Depression of the 1930s. Its aim was to promote financial stability by improving accountability and transparency in the financial system and to protect American taxpayers from abusive financial services practices.
The Financial CHOICE Act has received widespread criticism from members of the Democratic party with Senator Elizabeth Warren describing it as a 'handout to Wall Street'.
The Financial CHOICE Act includes over 100 changes that will relax restrictions currently placed on banks and financial institutions in the US. For example, stress tests, which analyse whether a bank has enough capital to withstand the impact of an unfavourable economy, will be less stringent. While the powers of the Consumer Financial Protection Bureau (CFPB), which has been aggressively pursuing bad practice by financial institutions on behalf of consumers, will also be reduced.