ACI Joins Urgent Call to Reject the RECOUP Act

ARLINGTON, VIRGINIA – Leaders from various policy groups have united in their stance against the proposed S. 2190, the RECOUP (Recovering Executive Compensation Obtained from Unaccountable Practices) Act, highlighting severe concerns over constitutional liberties, government accountability, and the potential for abuse of power.

Key Points:

• Excessive Power to Financial Regulators: The RECOUP Act would grant financial regulatory agencies unprecedented authority to remove the leadership of any supervised U.S. bank, even those not at risk of failure.
• Broad and Ambiguous Language: The act’s broad language could allow regulators to target banks based on policy judgments, such as climate risk reporting, directly threatening industries like oil and gas.
• Potential for Abuse of Power: Recent allegations reveal federal agencies’ misuse of power, such as FinCEN’s arbitrary surveillance of citizens based on purchases and speech. The RECOUP Act risks further enabling such invasive practices.
• Reminiscent of Operation Choke Point: Similar to past administrative pressures, this act could force banks to sever ties with legally operating businesses deemed risky by bureaucrats, affecting sectors from firearms to fossil fuels.
• Lack of Congressional Debate: The potential inclusion of the RECOUP Act in a must-pass appropriations bill would circumvent essential legislative scrutiny and debate, undermining democratic processes.

The signatories, including leaders from the Competitive Enterprise Institute, Americans for Tax Reform, and other influential organizations, call on Congress to reject the RECOUP Act, whether as a stand-alone bill or part of other legislation, to prevent new abuses of power and protect the integrity of the financial system.

Read the full Coalition Letter here.

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