The House Financial Services Committee will meet Tuesday to debate and vote on the Republican replacement for President Obama’s financial reform law, committee Chairman Jeb Hensarling of Texas announced Thursday.
Previously, Hensarling had suggested that he aimed for a September mark-up of his legislation, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, but that events could prevent that.
Yet to be determined is what amendments might be added to the bill, a sweeping conservative reform that touches on almost every aspect of the financial system’s architecture and contains many provisions sure to prove controversial.
The bill, introduced in June, is advertised to prevent government bailouts of banks while dramatically reducing the government’s regulation of the sector.
The overhaul would give banks the choice of opting out of the complicated Dodd-Frank rules if they maintained significantly higher levels of capital. More capital means that the banks rely more on ownership stakes and less on borrowing and is thought to reduce the risk of bank failure.
The bill also contains far more, however, including major changes for the Federal Reserve, far greater congressional oversight of the Consumer Financial Protection Bureau and a repeal of new limits on debit card transaction fees.
