Financial Choice Act Passes the House

While the political lens was focused on the James Comey testimony, the House of Representatives passed the Financial Choice Act. The bill is big change to many of the Dodd-Frank. For private funds, the most interesting section is: TITLE IV—Unleashing Opportunities For Small Businesses, Innovators, And Job Creators By Facilitating Capital Formation.

The Financial Choice Act does some interesting things and overreaches in many other ways. I personally think Dodd-Frank missed the mark. But it was in response to the financial crisis. There was a lot of political will to pass something to hold Wall Street accountable for the financial crisis.

I don’t think there is the political will to de-regulate financial institutions, which means there is not a good political pitch for this bill. The main theme has been to provide relief to Main Street. Smaller banks are having a harder time dealing with the banking regulations. The bigger banks, with their bigger operations and bigger balance sheets, are better able to deal with the complexity and costs.

Most think the bill is dead in the Senate. Perhaps some part of it will get passed, but it will look little like the bill passed by the House.