FSC Majority | Week in Review
Posted by Staff on November 14, 2014
Full Committee Examines Terrorist Financing and the Islamic State

The Financial Services Committee examined ongoing U.S. efforts to stop the Islamic State (ISIL) and other terror groups from obtaining and deploying financial resources at a hearing on Thursday.

“Unlike al Qaeda and other terror groups with which we are familiar and rely mainly on private donations and state sponsorship to fund their activities, ISIL is almost entirely internally financed and apparently is sitting on assets of almost $2 billion," said Chairman Jeb Hensaring (R-TX).

"Fighting the financial war against terror will demand constant innovation and improvement. The tools we have used in the past may not be suitable for the future. I look forward to hearing from all the witnesses on what may be necessary to upgrade, innovate and improve our capabilities to starve the terrorists of the money they so desperately need to carry out their attacks," he added.

"One of the most effective ways the U.S. has disrupted terrorists in the past has been to cut off their financing, limiting their ability to plot and plan attacks. Thwarting the Islamic State's multiple revenue streams and their ability to spend money they already have may require new tactics. So today I'm looking forward to hearing exactly how we are identifying and blocking financial intermediaries that could keep Islamic State in a strong position," said Rep. Marlin Stutzman (R-IN).

At the hearing, Rep. Dennis Ross (R-FL) said ISIL is able to generate funding through a variety of means “from selling oil on the black market, to taxing and extorting local businesses, to kidnapping for ransom...I look forward to working with my colleagues on this Committee to ensure the federal government uses every tool at its disposal to prevent ISIL from acquiring the funds to continue their reign of terror.”


Rep. Sean Duffy | ISIS Funding Network

U.S. Representative Sean Duffy (WI-07) talks to Bloomberg's Trish Regan about the ISIS funding network.

Weekend Must Reads

Washington Times | Wean business insurers off Terrorism Risk Insurance Act

There remains a need for a federal backstop against those catastrophic acts of terrorism that cannot be reasonably modeled or mitigated and whose size truly impacts our economy. However, today there is more capacity within insurance and reinsurance industries to cover far greater portions of this risk. There will be even more tomorrow, provided we put the act back on its transitional reform path.

Wall Street Journal | The Gensler Clean-Up

Under bipartisan pressure from Congress, it’s good to see that Mr. Massad is willing to acknowledge that the celebrated reforms now need to be reformed. But the errors were avoidable. These pages were not alone in warning for years that derivatives rules pursued by Mr. Massad’s predecessor, Gary Gensler, would punish Main Street along with Wall Street.

Wall Street Journal | Does the Fed Read the Election Returns?

All along, let’s face it, this set of priorities has been partly enabled by the Fed. At a speech in Paris on Friday, as fellow central bankers (even the French!) were talking about the need for deregulation and pro-market reforms, Ms. Yellen—the latest great enabler—continued to sing the praises of quantitative easing to solve all problems.

    On the Horizon 

November 18, 2014 2:00 p.m.
Housing and Insurance Subcommittee Hearing

"The Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers, Part II"

November 19, 2014 2:00 p.m.
Housing and Insurance Subcommittee Hearing

"Opportunities for a Private and Competitive Sustainable Flood Insurance Market"

  In the News

Wall Street Journal | Fannie Mae’s Profit Trap Comes Into View

Washington Times | New jobs numbers, same poor economy

Investor's Business Daily | Despite Gains In Jobs, Americans Aren't Convinced

Wall Street Journal | How to Distort Income Inequality

Politico Pro | Regional banks looking to Congress for relief

The Hill | Treasury urges patience in effort to dry up ISIS dollars

Reuters | Exclusive: Export-Import Bank admits errors in small biz data

Bloomberg | Fannie-Freddie Regulator’s 3% Down Loans Draw Jeers

Washington Times | The end of Dodd-Frank?

Talk Radio News Service | Treasury Under Secretary: More Intel Needed On ISIS Financing

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