Financial Services Committee Unveils Plan To Replace Dodd-Frank

House Financial Services Committee Chair Jeb Hensarling (R-TX) unveiled a summary of the "Financial CHOICE Act," a Republican plan to replace the Dodd-Frank Act ("Dodd-Frank"). Congressman Hensarling described the proposed Act as "a market-based, equity-financed Dodd-Frank off-ramp." The "CHOICE" acronym stands for "Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs."

The proposal offers banks and other financial institutions an alternative to the current regulatory regime if they maintain a 10% leverage ratio (among other conditions).

According to the executive summary, the Financial CHOICE Act would achieve the following goals:

• end "too big to fail" and bank bailouts;