Patrick McHenryChairman

Washington, January 13, 2017 -

House Floor Action Focused on Committee Bills

The 115^th Congress is picking up right where the 114^th left off:  passing bipartisan Financial Services Committee bills to help grow America’s Main Street economy and make Washington accountable.

During the 114^th Congress, 69 percent of the bills reported by the committee passed the House and 36 bills were signed into law.

The House this week passed two committee-led bills -- the Helping Angels Lead our Startups (HALOS) Act by a vote of 344-73 and the SEC Regulatory Accountability Act by a vote of 243-184.

The HALOS Act helps small business startups connect with angel investors and gain access to capital.  It defines an “angel investor group” and clarifies a regulation issued by the Securities and Exchange Commission about when a business can make a presentation to interested parties without running afoul of the securities laws.

The SEC Regulatory Accountability Act ensures that the benefits of proposed SEC regulations justify the costs to jobs, economic growth and capital formation.

Under the bill, before issuing a regulation the SEC will be required to:

• identify the nature and source of the problem its proposed regulation is meant to address;
• utilize the SEC’s Chief Economist to assess the costs and benefits of a proposed regulation to ensure the benefits justify the costs;
• identify and assess available alternatives; and
• ensure that any regulations are consistent and written in plain language.

“Whether it is buying a car or choosing a college savings plan, every American family weighs the pros and cons before making major life decisions. The SEC Regulatory Accountability Act simply requires that the Commission engages in the same process and can justify that the benefits of a proposed regulation will outweigh its costs,” said Oversight and Investigations Subcommittee Chairman Ann Wagner (R-MO), the sponsor of the bill.

Both bills are part of the committee’s agenda to “promote a dynamic economy with more jobs, higher wages and greater economic freedom for all Americans” that Chairman Jeb Hensarling (R-TX) touted earlier this month.

Obama ‘Parting Gift’ Puts Taxpayers at Risk

Chairman Hensarling warned that the Obama administration’s decision to lower Federal Housing Administration (FHA) mortgage insurance premiums puts taxpayers at greater risk of another FHA bailout.

“It seems the Obama administration’s parting gift to hardworking taxpayers is to put them at greater risk of footing the bill for yet another bailout.  Just three years ago the taxpayers had to spend $1.7 billion to bail out the FHA.  Lowering premiums to below market rates now only puts the FHA in a more precarious financial condition,” he said.  “Playing politics with the FHA through cynical, surprise 11^thhour rule changes is irresponsible and endangers the integrity and success of the FHA.  To be successful, the FHA must be fiscally sound, with a clearly defined mission, to ensure homeownership opportunities for creditworthy first-time homebuyers and low-income families.  Lowering FHA premiums now is counterproductive to achieving these goals and puts the U.S. taxpayer at greater risk.”

MEMBER SPOTLIGHTS

 Rep. French Hill (R-AR) | Introducing a ‘better way’

For our part, the House Committee on Financial Services was tasked with finding a legislative alternative to move away from the overregulation of Dodd-Frank and its decimation of smaller banks and the crippling effect that has had on access to credit for many hardworking Americans. The Financial CHOICE Act, which was introduced by Chairman Jeb Hensarling this year, will end the failures of Dodd-Frank and “right sizes” financial oversight that actually allows our economy to grow, ends too-big-to-fail, and provides consumers with necessary protections and affordable access to credit.

Rep. Tom MacArthur (R-NJ) | Congressman: Federal banking rules hurt N.J.'s efforts to keep, grow small businesses

Supporting small business is not a partisan issue; it's a priority for both sides of the aisle. If our nation's small businesses are not thriving, it sets off a chain reaction, affecting our Main Streets, households, property values and more. Because of this, it is critical for Congress to continuously look at policies to determine the impact on small businesses and ensure they are not inhibiting growth.

Rep. Bill Huizenga (R-MI) | Huizenga votes to boost small businesses

Small businesses helped create more than 60 percent of the nation's net new jobs over the past two decades. So if our nation is going to have an economy that provides opportunities for every American, then we must promote and encourage the success and growth of our small businesses and startups.

Rep. Ann Wagner (R-MO) | House passes Wagner proposal in GOP push to cut rules

The House on Thursday passed a bill by Rep. Ann Wagner that would constrain regulators from setting new rules before identifying specific goals and undertaking a cost-benefit analysis. It would also require regulators to routinely review whether rules are functioning as intended — and, if not, nix them. 

Weekend Must Reads

Finer Points Blog | Take a Stand for Financial CHOICE

As we did in the last Congress, ICBA will strongly support Chairman Hensarling’s forthcoming bill, as should all community bankers who want to roll back decades of excessive regulation capped off by many misguided policies that have taken effect in recent years. I call on all community bankers from coast to coast to join us in supporting this important legislation and urging Congress to pass it as soon as possible.

AEI | Why Barack Obama’s Presidency Failed

Regulatory interference has contributed to a marketplace in which fewer people work in new and small businesses, the traditional engines of job growth in America.  In short, there is too much sand in the gears of economic life in our country—and working Americans know it.

Wall Street Journal | Firing Richard Cordray

Donald Trump has experience firing subordinates, sometimes even without television cameras around, and we’re nominating his next candidate: Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), whose lawless and unprofessional agency deserves a dose of political accountability.

Investor’s Business Daily | Beleaguered Small Businesses Set For Big Rebound Under Trump

In the News

Politico | POLITICO Pro Q&A: Jeb Hensarling, chairman, House Financial Services Committee

Investor’s Business Daily | Obama's Final Jobs Report Is A Fitting End To His Presidency

Wall Street Journal | SEC Commissioner Says Dodd-Frank Rules Not a Priority

Washington Examiner Obama administration cuts premiums on federal mortgage insurance  

Washington Examiner | Fed is 'running the economy hot,' official warns

Wall Street Journal | Making Housing Sane Again

The Hill | House passes bill aimed at helping startups

Forbes | Dodd-Frank Repeal Could Be Boon For Small, Regional Financials

Wall Street Journal | Federal Reserve Sent $92 Billion in Profit to U.S. Treasury in 2016

Politico | Ben Carson on key housing issues

Dallas Morning News | Ex-congressman meets with Trump about consumer protection post