Opposition to H.R. 4296

Floor Speech

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Mr. POLIS. Mr. Speaker, H.R. 4296, a bill that restricts how federal financial regulators determine the amount of operational risk capital large banks are required to hold. Operational risk standards were put in place after the financial crisis of 2008 and currently apply to the largest financial firms in the country. These capital requirements are designed to ensure that large financial institutions have enough money on-hand to protect consumers and taxpayers, avoiding another taxpayer funded bank bailout. At the time H.R. 4296 was brought to the floor, I voted in favor of passage. However, this was a mistake and I would like to reflect that I do not support this legislation.

The Dodd-Frank Wall Street Reform and Consumer Protection Act was passed to ensure that the American taxpayers will not have to pay for another Wall Street bailout. I am a proud co-author and supporter of the Dodd-Frank Act and continue to believe that it is critical to protect our nation's financial stability. Dodd-Frank put in place financial regulations that protect the broader economy by mitigating risk of large financial firms. Further, it enacted much needed consumer protections to make financial products offered to consumers safer and easier to understand. Significant changes to Dodd-Frank could undermine the stability of the economy and our financial services sector and increase the likelihood that predatory lenders will return to prey on vulnerable consumers.

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