Financial CHOICE Act of 2017
Latest action. Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-108.
Financial CHOICE Act of 2017
(Sec. 2) This bill repeals provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other laws. Any rule that was issued or revised pursuant to a provision repealed by the bill is nullified.
TITLE I--ENDING "TOO BIG TO FAIL" AND BANK BAILOUTS
Subtitle A--Repeal of the Orderly Liquidation Authority
(Sec. 111) The bill repeals the orderly liquidation authority of the Federal Deposit Insurance Corporation (FDIC). The FDIC's orderly liquidation authority, as established under the Dodd-Frank Act, allows the FDIC to liquidate a failing financial institution if the institution's imminent failure threatens financial stability.
Subtitle B--Financial Institution Bankruptcy
(Sec. 121) Newly established provisions related to Chapter 11 bankruptcy, which generally involves the reorganization of a debtor's assets and debts, shall apply to covered financial corporations (certain large and complex financial institutions, as defined by the bill).
Under specified circumstances, a court may convert a covered financial corporation's Chapter 11 bankruptcy case into a case under Chapter 7 bankruptcy (also known as "liquidation" bankruptcy).
(Sec. 122) The bill amends the federal bankruptcy code to establish Chapter 11 bankruptcy procedures specific to covered financial institutions.
Specified federal financial regulatory agencies may appear and be heard in such cases.
In making decisions in such cases, a court may consider effects on financial stability in the United States.
(Sec. 123) The Chief Justice of the U.S. Supreme Court shall designate judges to hear Chapter 11 bankruptcy cases involving covered financial corporations.
Subtitle C--Ending Government Guarantees
(Sec. 131) The bill repeals the FDIC's authority, under the Dodd-Frank Act, to guarantee bank debt during times of severe economic distress.
(Sec. 132) Current law generally requires the FDIC to utilize the least-costly method when using the Deposit Insurance Fund to resolve failing banks; however, in an exception to this requirement, the FDIC may take other action or provide assistance to avoid or mitigate serious adverse effects on economic conditions or financial stability. The bill repeals this exception.
The summary continues for 289 more paragraphs. Read it in full on Congress.gov
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Passed House amended" stage on June 8, 2017. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on July 13, 2017: Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 115-108.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the House
- Passage by the Senate
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 115th Congress (2017-18), 442 of the 11,421 bills and joint resolutions introduced became law, about 3.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
Jeb Hensarling (R-TX) introduced it on April 26, 2017, and 40 members have since signed on as cosponsors.
They are 40 Republicans.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on April 26, 2017, 3424 days ago. The most recent recorded action was 3346 days ago, on July 13, 2017.
Measures do not carry over. Anything the 115th Congress has not finished by January 3, 2019 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- HouseIn committee, no floor vote yet
- SenateAwaits House passage
- PresidentAwaits both chambers