Walker Votes To End Wall Street Bailouts And Strengthen Community Banks, Supports The Financial CHOICE Act
WASHINGTON, D.C. – U.S. Representative Mark Walker (R-N.C.) today voted to end taxpayer bailouts of financial institutions by supporting H.R. 10, the Financial CHOICE Act of 2017 – which passed the House of Representatives by a vote of 233 to 186.
“When I talk to the people of North Carolina, a common sentiment I hear is the American Dream is fading," Walker said. "This concern becomes reality driving on Front St. in Burlington or Steele St. in Sanford, observing the vanished local banks that used to serve as the epicenter of growth for our community. Burdening regulations have diminished the backbone of our local economy and the true cost can only be measured in small businesses not started, workers not hired and dreams not filled. With our vote on the Financial CHOICE Act, we can start to reverse course and upend the country’s historically slow economic recovery, while placing the stiffest penalties in history on Wall Street abuse.”
In 2010 (the year the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law), North Carolina's 6th District's housed nine community banks including CommunityOne Bank in Asheboro, NewBridge Bank in Greensboro, and Mid-Carolina Bank in Burlington. Today, that number is only two as Dodd-Frank regulations have forced closures and mergers across North Carolina. In fact, community banks are closing at a national rate of one per day. Meanwhile, the five largest banks in the country have grown their domestic assets by more than 40 percent during the same time.
Instead of fixing the causes at the center of the 2008 financial crisis, the 2,300-plus page Dodd-Frank bill codified into law “too big to fail” and taxpayer-funded bailouts. And instead of being tough on Wall Street, it put many local banks out of business because they did not have the resources to navigate the expansive and costly regulations. The effect has been seen in communities nationwide.
Dodd-Frank has also been noted as a major cause of our ongoing economic recovery – which is the slowest and weakest in 70 years.
The Financial CHOICE Act reins in Dodd-Frank and gives local banks and small businesses an opportunity for success. The bill would protect taxpayers from paying for more Wall Street bailouts, forcing failing banks and financial institutions to go through bankruptcy like any other company.
The Financial CHOICE Act also holds Wall Street accountable by imposing the toughest penalties for financial fraud in history. Additionally, the bill cuts the deficit by $33.6 billion over 10 years.
Small, community banks account for 54 percent of small business loans across the country. Small businesses make up 64 percent of net new private sector jobs. By empowering community banks, the Financial CHOICE Act will help grow jobs and the economy in North Carolina.