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Financial CHOICE Act Introduced, Committee Action Scheduled
The Financial CHOICE Act, the Republican plan to replace the failed Dodd-Frank Act with economic growth for all and bank bailouts for none, was formally introduced in the House on Friday as H.R. 5983.
Chairman Hensarling first unveiled details of the Financial CHOICE Act in June. The Financial Services Committee will begin meeting on Tuesday, Sept. 13 to debate the Financial CHOICE Act, consider possible amendments and vote on the legislation.
In a video message, Chairman Jeb Hensarling (R-TX) outlined why the Financial CHOICE Act is important.
“Since Democrats passed Dodd-Frank, Americans on Main Street have been struggling with stagnant wages, struggling to get small business loans, and struggling to save for their future. House Republicans have a better way forward,” said Chairman Jeb Hensarling (R-TX).
“It ends taxpayer-funded bailouts once and for all.
“It stops the cronyism that allows the powerful and well-connected to game our system.
“It lifts bureaucratic red tape -- intended for big banks on Wall Street -- off of community banks on Main Street.
“It requires banks to be well capitalized to prevent another financial crisis and puts in place the toughest penalties in history to protect consumers from fraud and deception.
“And it will help grow the economy for all Americans -- not just those at the top.
“It promotes strong and transparent markets to revitalize job creation in our poorest communities and ensures every American has the opportunity achieve financial independence, no matter where they start out in life.
“That’s our plan and it’s a better way to revitalize America.”
Subcommittee Probes Cash Ransom Payment to Iran
The Financial Services Subcommittee on Oversight and Investigations held a hearing Thursday on the Obama Administration’s decision to pay $1.7 billion in cash to Iran, the world’s foremost state sponsor of terrorism.
The hearing featured two panels of witnesses, one of which was comprised of Administration officials who agreed to testify before the Subcommittee only after the threat of subpoenas.
Originally believed to be a $400 million cash payment to Iran, it was revealed earlier this week that the Obama Administration made two additional cash payments totaling $1.3 billion to Iran.
“This new revelation raises additional questions and underscores the need for Administration officials to answer them,” said Rep. Sean Duffy (R-WI), Chairman of the Subcommittee. “In an effort to corroborate the Administration’s claims, this committee requested records related from Treasury and the Department of Justice more than a month ago. To date, the self-proclaimed ‘most transparent Administration in history’ has failed to provide any documents."
In its coverage of the hearing, the Associated Press reported that “Republicans noted that it is unusual to make a payment in cash to another country and that it seemed as though the administration was trying to hide it. Iran ‘wanted the cash because they are trying to fund terror,’ asserted GOP Rep. Ed Royce of California, a committee member who also leads the House Foreign Affairs Committee.”
Fed Officials Warn Against Liberals’ Plans to Politicize Monetary Policy
Witnesses appearing before the Subcommittee on Monetary Policy and Trade at a hearing on Wednesday warned that reforms to the Federal Reserve System sought by liberals would politicize monetary policy deliberations and threaten the Fed’s independence in the conduct of monetary policy.
“The Fed’s public-private structure supports monetary policy independence by ensuring a measure of apolitical leadership,” said Jeffrey Lacker, President and Chief Executive Officer of the Federal Reserve Bank of Richmond.
“The Federal Reserve’s unique public-private structure…is designed to provide a system of checks and balances,” said Esther George, President and Chief Executive Officer of the Federal Reserve Bank of Kansas City. “Altering this public-private structure in favor of a fully public construct…risks putting more distance between Main Street and the nation’s central bank.”
Speaking about the House-passed FORM Act (Fed Oversight and Reform) and the Financial CHOICE Act, Subcommittee Chairman Bill Huizenga (R-MI) said, “I know that a better way is available – one that reverses the increased centralization of monetary policy in Washington’s politicized Board of Governors, and restores the historic role of District Banks as a critical source of local economic information and an institutional source of support for sound monetary policy.”
House Passes Innovation Bills to Grow Our Economy
The House passed four bills this week to help smaller businesses access the capital they need to expand, hire and grow the economy.
On Thursday, the House passed H.R. 2357, the Accelerating Access to Capital Act. This bill is a package of three bills sponsored by Committee members Ann Wagner (R-MO), Tom Emmer (R-MN) and Scott Garrett (R-NJ). H.R. 5424, the Investment Advisers Modernization Act sponsored by Committee member Robert Hurt (R-VA), was passed by the House on Friday.
For more information about these bills, click here and here.
MEMBER SPOTLIGHT
Rep. Bill Huizenga (R-MI) | Democrats plot hostile takeover of the Fed via Dodd-Frank
Democrats have consistently resisted reforms that would modernize the Federal Reserve, bringing much needed transparency to what most Americans consider an impossibly opaque institution. While such reforms promise increased accountability, Democrats falsely claim that a better disciplined, more predictable, and clearly communicated monetary policy would jeopardize the Fed's independence.
Weekend Must Reads
Politico | Yes, community banks are struggling under Dodd-Frank
In their zeal to defend President Obama’s signature financial legacy, the Dodd-Frank Act, the White House and its allies are pushing what must now be thought of as an urban legend: the myth that community banks are thriving under Dodd-Frank.
The Times and Democrat | Durbin amendment is bad business
The Durbin amendment has also hurt Main Street, especially the community banks and credit unions that provide lending and other services to South Carolina families, farmers, and small business owners. These higher costs negatively affect customers, including the restaurateurs and entrepreneurs taking advantage of economic opportunity in our state.
AEI | Why Payments to Iran Always Backfire
Not only has delivery of millions of dollars provided incentive to seize more hostages, but because the money was delivered in cash, the payment bolstered the strength of the Islamic Revolutionary Guard Corps and augmented its ability to finance and conduct terrorism.
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