Posted by Staff on February 10, 2015
Several months ago this blog noted that Australia’s richest citizen secured a nearly $700 million loan for a new mining project from American taxpayers thanks to the U.S. Export-Import. Now the Australian Business Review is reporting that the project “is set for very large losses.”

In the short term, the capital costs for Gina Rinehart’s Roy Hill mine are almost certain to blow out — and a lower iron ore price will make matters worse.

If the current iron ore price decline continues into 2017 and beyond, then Gina Rinehart’s massive $10 billion Roy Hill mine project is set for very large losses when it starts production next year.

And if the reports of safety problems in the construction phase are right, then the capital costs will blow out beyond $10bn, especially if unions start playing hard ball, as they often do when there is a safety cause.

Now we know why banks & investors wouldn’t take the risk – but, American taxpayers did. #ThanksExIm
Posted by Staff on February 06, 2015
Subcommittee Examines Legal and Ethical Violations at HUD

The Oversight and Investigations Subcommittee heard testimony at its hearing on Wednesday that senior officials at the Department of Housing and Urban Development broke federal law and faced minor consequences for various ethical and legal violations.

In its coverage of the hearing testimony, the Washington Post reported the alleged violations include financial fraud, sexual harassment, nepotism and conflicts of interest.

"I want to make clear to committee members that these are different allegations against different employees in different departments and divisions responsible for very different tasks, but they seem to display the same cavalier attitude that shows these employees do not believe in following the rules and they do not care about getting caught. And when they do get caught, they do not care that they are obstructing an investigation or Congress," said Subcommittee Chairman Sean Duffy (R-WI). "It’s an attitude I think Americans are learning is prevalent throughout this Administration. And it’s an attitude I think we’re quickly getting tired of."

The Washington Times noted in its coverage of the hearing that, among various violations, HUD officials violated federal law by using taxpayer money to lobby Congress for increased HUD funding.

A witness from the Government Accountability Office told the Subcommittee that her agency concluded HUD officials violated federal law by engaging in “indirect or grassroots lobbying” when they urged individuals at organizations that receive HUD funding to contact members of Congress regarding HUD’s pending appropriations bill. 

A report issued last year from HUD’s Inspector General into this same matter also revealed that HUD officials attempted to cover up their illegal lobbying activity by obstructing the investigation.

NOTE: Coming to your e-mail inbox on Sunday afternoon -- this week’s Video Message will include some highlights of the Subcommittee’s hearing, with appearances by Chairman Sean Duffy and Reps. Michael Fitzpatrick (R-PA) and Bruce Poliquin (R-ME).


Rep. Michael Fitzpatrick | Fitzpatrick bill protects small businesses, families, taxpayers

No matter how well intentioned the more than 2,000 pages of Dodd-Frank regulations — and tens of thousands of other federal rules — there is always room to be made more effective and responsible. This is what the CLO provisions in Fitzpatrick’s bill (as well as the 10 other bipartisan measures) do: They work to protect consumers while letting small banks and businesses do their job. Why then a sudden uproar when Congress considered Fitzpatrick’s bill? Rep. Fitzpatrick’s colleague from across the aisle, and the Delaware River, Rep. John Carney (Del.) even offered this about the bill: “The provisions in this bill have passed Congress overwhelmingly in years past. Only now has it become distorted and mischaracterized for political purposes.”

Weekend Must Reads

Gallup | The Big Lie: 5.6% Unemployment

I hear all the time that "unemployment is greatly reduced, but the people aren't feeling it." When the media, talking heads, the White House and Wall Street start reporting the truth -- the percent of Americans in good jobs; jobs that are full time and real -- then we will quit wondering why Americans aren't "feeling" something that doesn't remotely reflect the reality in their lives. And we will also quit wondering what hollowed out the middle class.

Palm Beach Post | 3 Ways to Level the Economic Playing Field

Many longstanding federal and state policies privilege some businesses and not others. This tilted playing field isn’t just unfair; it’s grossly inefficient. It undermines competition, discourages innovation, and prompts businesses to expend billions of dollars in socially wasteful efforts to win the favor of politicians. But it need not be this way. A serious agenda to level the economic playing field appeals to both the progressive impulse to stick up for the powerless and the conservative urge to check government’s scope and power.

Investor's Business Daily | Collapsing Homeownership Proves Folly Of Federal Housing Policies

The government's homeownership scheme, like so much of what the meddling do-gooders inside the Beltway do, was viewed as grand and noble — until it all came crashing down on everyone. They turned the American Dream into a nightmare. But the social engineers never learned their lesson. In fact, they're doubling down on their mistakes.

    On the Horizon 

February 11, 2015 10:00 a.m.
Full Committee Hearing

"The Future of Housing in America: Oversight of the Federal Housing Administration"

  In the News

Washington Examiner | Housing projects use tax dollars to lobby for more tax dollars

Washington Times | Millions in HUD money went to lobbying, not housing

Fiscal Times | HUD Execs Flagged for Ethics, Lobbying Violations

Washington Post | Va. Democrat official accused of lobbying violation while in federal government 

Foreign Policy | How Dodd-Frank Is Failing Congo 

American Banker | Luetkemeyer Tries Again on Anti-Choke Point Bill 

Business Wire | CAGW Announces 2014 Porker of the Year Nominees

Detroit News | Editor’s Note: Who’s watching the watchdog?

Kentucky Educational Television | Rep. Andy Barr: One to One from Washington  

Washington Post | The diminishing returns of today’s homeownership policies

Investor's Business Daily | Watt Moves To Take Fannie, Freddie Off Sound Credit Standard

Posted by Staff on January 30, 2015
Washington ‘Rolling the Dice’ Again on Risky Housing Schemes

At a hearing on Tuesday, members of the committee voiced their strong concerns to the Director of the Federal Housing Finance Agency regarding recent FHFA actions that could repeat the same mistakes that led to the financial crisis.

"Contrary to the fable told by the left, the root cause of the financial crisis was not deregulation but dumb regulation. Regulations and statutes that either incented or mandated financial institutions to loan money to people to buy homes they ultimately could not afford to keep. Exhibit one, Fannie and Freddie’s affordable housing goals. 70 percent of all troubled mortgages were backstopped by Fannie, Freddie and other federal agencies," said Chairman Jeb Hensarling (R-TX).

"Regrettably, Washington appears to be rolling the dice yet again. Within the last 12 months FHFA has announced three different policies that are harmful to transitioning us to a sustainable housing finance system that protects both homeowners and taxpayers," added Chairman Hensarling.

Housing and Insurance Subcommittee Chairman Blaine Luetkemeyer (R-MO) noted, "At today’s hearing, FHFA Director Mel Watt agreed that there are certain tenants of responsible lending; Fannie Mae and Freddie Mac do not adhere to those tenants, and that could ultimately leave taxpayers in the position of once again footing a massive bailout. Director Watt confirmed today that taxpayers are backing Fannie Mae and Freddie Mac and will continue to be on the hook until housing finance reform is enacted. It is unfathomable that Director Watt thinks it is acceptable to take no action to protect taxpayers, particularly given that our nation is just a few years removed from a financial crisis that saw record numbers of foreclosures and the largest taxpayer funded bailout in history."

Rep. Mia Love (R-UT) said, "As I witnessed as a mayor, I have actually seen how these heavily involved government policies have actually hurt many cities in their ability to thrive and to grow. We have watched homes being built and actually seen those homes a year later completely empty, and hardworking families lose their credit and their ability to get into a home.”


Rep. Blaine Luetkemeyer | Luetkemeyer leads effort to end Operation Choke Point

“We’re very pleased they’ve acknowledged their wrongdoing and they’ve accepted our suggestions to put in place measures to stop this activity,” Rep. Blaine Luetkemeyer, R-Mo., told The Daily Signal in a phone call this morning. Luetkemeyer, a member of the House Financial Services Committee and leader in the fight to end Operation Choke Point, met with FDIC Chairman Martin Gruenbery and Vice Chairman Thomas Hoenig earlier today as a follow-up to concerns voiced last November.

Weekend Must Reads

Investor's Business Daily | Free Spending In Washington In A Time Of Frugality

Given half-trillion-dollar deficits, this is supposed to be an era of belt-tightening for governmental agencies. But you wouldn't know it from the fat-and-happy spending by some of them. Fannie Mae and the Consumer Financial Protection Bureau, for example, have both announced they're moving on up into glitzy new downtown Washington, D.C., office buildings costing taxpayers hundreds of millions.

McClatchy | Federal debt will explode over next 10 years, CBO says

The improving deficit numbers are temporary. Budget deficits are projected to begin going up again in 2018, and to nearly double by 2024 as retiring baby boomers strain the health and retirement systems, the economy grows more slowly and interest on the nation’s outstanding debt rises.

Real Clear Policy | The Crushing Burden of Government Regulation

Three years ago, Democrats and Republicans joined together to enact the Jumpstart Our Business Startups (JOBS) Act to reform U.S. securities law and make it easier for small businesses to raise capital. That law was a good start, but more needs to be done. So, Rep. Patrick McHenry (R., N.C.) is building support for a JOBS Act II, whose passage should be a no brainer for legislators of both parties.

    On the Horizon 

February 4, 2015 10:00 a.m.
Oversight and Investigations Subcommittee Hearing

"Exploring Alleged Ethical and Legal Violations at the U.S. Department of Housing and Urban Development"

  In the News

Wall Street Journal | Hensarling’s Housing History Lesson

Bloomberg | Bipartisan Support for Dodd-Frank Changes: Neugebauer

Wall Street Journal | Fannie, Freddie Regulator Defends Actions

Wall Street Journal | FDIC: Examiners Must Give Banks Written Notice on Risky Accounts

American Banker | FSOC's Proposed SIFI Reforms Are 'Too Little, Too Late': Critics

Washington Post | Mr. Obama’s economic optimism ignores the ongoing battle with federal debt

Reuters | U.S. housing regulator signals guarantee fee decision this quarter

Posted by Staff on January 26, 2015

In this week's FSC Video Message, members give their thoughts on the president’s State of the Union speech. 
Posted by Staff on January 23, 2015
Committee Adopts Oversight Plan

On Wednesday the Committee voted unanimously to adopt the Committee's oversight plan for the 114th Congress.

"No one in Washington – Republican or Democrat – should ever be allowed to carelessly spend the hard-eared taxpayers’ money. And that is why this committee will continually and vigilantly monitor every agency and every program under our jurisdiction. Hopefully we feel this is a bipartisan mission and a bipartisan commitment," said Chairman Jeb Hensarling (R-TX).

"If a program isn’t working, if it does more harm than good, it is time to reform it or it is time to get rid of it. If policies or regulations don’t make common sense, let’s make them sensible. That will lead to a better economy," added Chairman Hensarling. "As all of us know, consumers remain very concerned about the economy. Still too many live paycheck to paycheck. Too many have seen their paychecks shrink. Americans deserve an economy that meets its full potential. That is something I hope members on both sides of the aisle will be committed to -- that we will have a healthier, more robust economy."


Rep. Patrick McHenry | McHenry: "Get Lending Moving Again"

“The number one priority is to ensure that we get lending moving again,” McHenry said, during a phone interview. “Small community banks and credit unions have been harmed by the regulatory agenda in Washington that makes it more costly to get credit and less available in a time where families and small businesses need access to capital. In addition to that, it’s important that we ensure that the government is no longer on the hook for bailouts of banks, or any other institution, for that matter, in the United States. We’re working through changes to Dodd-Frank to ensure that the government is not on the hook for bailouts going forward.”

Weekend Must Reads

Washington Post | The Federal Housing Administration’s risky move to lower premiums

Taxpayers might legitimately wonder, however, why it’s necessary to take on this additional risk so soon after the FHA’s bailout, before the capital cushion is even halfway rebuilt — and at a time when homebuyers are already enjoying record-low interest rates, plus a windfall from cheaper gasoline. The president’s own estimate of the cash savings from the premium cut implies that it would pump less than $1 billion a year of consumer cash into an economy that is already recovering well without it. The premium reduction takes effect Jan. 26, so the administration can still reconsider, which is what it will do if it has really learned a key lesson of the Great Recession: Finance in general, and mortgage finance in particular, is riskier than it sometimes seems, and the best protection against those risks is a solid core of capital. 

| Kiss that 'shrinking' budget deficit goodbye

"However, mandatory federal spending, especially for public retirement and health-care benefits, continued to expand unabated in the first three months of the fiscal year. Such rising mandatory expenditures foreshadow spiraling federal deficits and debt ahead."

Investor's Business Daily | Next Housing Bubble Will Be Caused By Gov't, Not 'Greed'

Fannie and Freddie are now purchasing the large majority of mortgages and announced last month that they would buy mortgages with only 3% down payments. The qualified mortgage standards that HUD and other regulators laid down in October allowed for mortgages with zero down payments. That sounds like a recipe for another housing bubble — and for mass foreclosures, which hurt the policies' intended beneficiaries — and perhaps for another financial crisis as well.

CNN Money | Obama says wages are growing. They're not

Wages basically didn't grow at all in 2014, according to the Labor Department. The median weekly wage at the end of 2014 was $796 (seasonally adjusted). That's barely changed from the same time in 2013, when the weekly wage was $794.

    On the Horizon 

January 27, 2015 10:00 a.m.
Full Committee Hearing

"Sustainable Housing Finance: An Update from the Director of the Federal Housing Finance Agency

  In the News

Wall Street Journal | Obama’s Middle-Class Blind Spot

Daily Signal | Government Agency Under Scrutiny for $215 Million Building Renovation

Washington Times | The unvarnished state of the union

The Star Press | Messer: Washington does not need more money

The Intelligencer | Correcting the Dodd-Frank abomination

MPBN News | Poliquin Touts Importance of Committee Assignment

Wall Street Journal | The Gaslight Presidency

Forbes | Monetary Politics: The Biggest Money Player In Politics Is The Fed

Investor's Business Daily | President Obama's Tax Hike Plan Is A Plan For Failure

Wall Street Journal | Tax Reform Should Go Right Down Main Street

Investor's Business Daily | The Real Obama Economy: A Subpar Recovery Drags On

Posted by Staff on January 23, 2015

House Financial Services Committee Chairman Jeb Hensarling (R-TX) will appear on CSPAN’s Newsmakers this Sunday, January 25th at 10:00 a.m. and 6:00 p.m. ET.  The Chairman will offer his thoughts on the President’s State of the Union speech, fundamental tax reform, the economy, and the need for Congress to pass sustainable housing finance reform.




Posted by Staff on January 16, 2015
Bipartisan Majority Passes Regulatory Relief Bill to Help Create Jobs

On Wednesday the House passed H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act, with a bipartisan vote of 271-154.

The bill is a package of 11 targeted measures overwhelmingly supported by Republicans and Democrats in the 113th Congress which reduce regulatory burdens and make it easier for small businesses to access job-creating capital.

“It is clear that smart regulations allow the private sector to innovate and create more jobs while protecting taxpayers and consumers. However, it is equally clear that one-size-fits-all regulations hurt the economy by treating small and medium sized companies as if they are large, multinational corporations,” said Rep. Mike Fitzpatrick (R-PA), the bill’s sponsor. “No Main Street small business, manufacturer, farmer or rancher caused the financial crisis. Yet they are subject to thousands of new pages of regulations that were supposedly designed for big Wall Street firms. That’s not fair.”

Taking note of the divisions the bill has caused in the House Democratic caucus, Chairman Jeb Hensarling (R-TX) said during debate that “it is time to do what everybody claims they want to do, and that is work on a bipartisan basis. All of these bills passed with overwhelming bipartisan majorities and now because of this almost religious zeal for the Dodd-Frank brand, some of my Democratic colleagues have decided they were for it before they were against it.”

One of the bill’s Democratic supporters, Rep. John Carney (D-DE), echoed Chairman Hensarling’s remarks.

“The provisions in this bill have passed Congress overwhelmingly in years past,” said Rep. Carney. “Only now has it become distorted and mischaracterized for political purposes. I will continue to stand firm in supporting improvements to financial regulations that will protect consumers and help businesses create jobs. That’s why I voted for this bill.”

Committee Holds Organizational Meeting

The Committee held its organizational meeting to adopt the rules package for the 114th Congress on Wednesday. At the conclusion of the meeting, Chairman Hensarling announced Republican subcommittee assignments as well as the Committee’s leadership team for the 114th Congress.

“I look forward to working alongside my colleagues to pass laws that help grow the economy from Main Street up, not Washington down,” said Chairman Hensarling. “Our committee will continue to focus on promoting sensible solutions that help create jobs and hold both Washington and Wall Street accountable to the American people."


Rep. Bill Huizenga | Rep. Huizenga's mergers and acquisitions bill passes House of Representatives

"My bill idea came not from anybody on Wall Street, not from anybody in Washington, D.C., but from a mergers and acquisitions lawyer back in my district -- back in Grand Rapids, Michigan -- who said, we've been struggling with this problem and we need some help because we cannot get the SEC to move on this. ... 'It has been estimated that approximately $10 trillion of privately owned small family-owned type businesses will be sold or, worse yet, closed in the coming years as baby boomers retire. I don't think any of us would think that's a good thing."

Weekend Must Reads

American Banker | A New Congress, a New Chance to Rein In the CFPB

Congress should act to curb the CFPB. For one thing, Congress should ensure that it, rather than the Fed, funds the agency. This would make the agency directly accountable to Congress, which is in turn politically accountable to voters.

Real Clear Markets
| The Illegitimate Dodd-Frank Law Has Nothing To Do With the Financial Crisis

Although the American people were told that the Dodd-Frank Act was a response to the 2008 financial crisis and was intended to prevent similar financial crises in the future, neither the administration nor Congress ever made any effort to determine what actually caused the crisis. Instead, the narrative that drove Dodd-Frank was concocted to achieve an ideological purpose: to impose greater regulation on the US financial system.

Real Clear Markets | Dodd-Frank Most Likely To Be At the Root Of a Future Crisis

Enhancing regulatory powers may seem like a good way to prevent people at financial companies from doing stupid or greedy things. Regulators, however, also do stupid and greedy things. The stakes are higher when regulators make mistakes because regulatory influence is not limited to one firm.

    On the Horizon 

January 21, 2015 2:00 p.m.
Full Committee Markup

"Markup to adopt the Committee’s oversight plan for the 114th Congress"

  In the News

The News Journal | Delaware’s John Carney backs Dodd-Frank revision

The Hill | Hedge poised to cash in on Obama's veto

Associated Press | Obama signs terrorism insurance renewal

Reuters | U.S. lawmaker directs consumer bureau to ditch office upgrade

The Hill | Why we should demand regulatory reform

Wall Street Journal | The Fed Cash Machine

Washington Times | Anti-growth policies slow jobs creation

Wall Street Journal | MetLife Takes On the Feds | Controversy builds at U.S. consumer protection bureau

Washington Free Beacon | Ex-Im Bank Staffs Up With Politically Connected Green Energy Execs

Investor's Business Daily | Is American Business On Road To Extinction?

Investor's Business Daily | Obama's Record On Debt, Deficits Is Worst Ever

Wall Street Journal | How Spending Sapped the Global Recovery

The Hill | MetLife goes to court

Washington Times | Hiding the real economic story

Posted by Staff on January 09, 2015
House's TRIA Reauthorization and Dodd-Frank Clarification Bill Headed to President's Desk

The House once again overwhelmingly passed a long-term reauthorization of the Terrorism Risk Insurance Act (TRIA) with taxpayer protection reforms this week. The bill, sponsored by Rep. Randy Neugebauer (R-TX), included the reestablishment of NARAB and also a critically important clarification of Dodd-Frank to prevent further harm to jobs on Main Street.

Chairman Jeb Hensarling (R-TX) said the bill “clarifies that Main Street businesses, farmers and ranchers – who had nothing to do with the 2008 financial crisis – will no longer be subject to an onerous misinterpretation of the language of Dodd-Frank. Both former Chairman Barney Frank and former Chairman Chris Dodd, as well as Ranking Member Waters, have said this misinterpretation is a mistake."

Failure to clarify this “end user” provision of Dodd-Frank threatened to inflict serious harm on the economy, endangering up to 130,000 jobs and reducing capital spending by as much as $6.7 billion, according to the Coalition for Derivatives End Users. These are dollars that could otherwise be invested to sustain and grow jobs.

A day after the House passed the bill by a vote of 416-5, the Senate approved the bill 93-4 after resoundingly defeating an amendment by Senator Elizabeth Warren (D-MA) to strip out the Dodd-Frank clarification that’s needed to protect Main Street small businesses, farmers and ranchers from Dodd-Frank’s onerous end user regulations. The Warren amendment failed by a vote of 31-66. The House bill now heads to the President.


Rep. Randy Neugebauer | House passes two of Neugebauer's bills on second day of session

It’s been a busy opening week of the 114th Congress for Lubbock's U.S. Rep. Randy Neugebauer, who had two bills pass through the House on Wednesday.

Weekend Must Reads

Politico Magazine | The (Real) Bank of America

Nobody set out to create the bank of America or make it this big. It’s an outgrowth of the classic Washington instinct—arguably an American instinct—to max out the credit card now and worry about the risks later. Its $3.2 trillion in debt doesn’t even include another $15 trillion worth of pension insurance, deposit insurance, Fannie Mae and Freddie Mac mortgage insurance, and other government exposures that aren’t officially considered credit programs. I interviewed about 50 sources inside and outside government about the bank of America, and few of them think it is well-designed, well-managed or well-understood, even if much of what it does is well-intentioned.

Forbes | CFPB Fails To Protect Consumers

To some, the CFPB sounds like a great idea in theory—an entire federal agency dedicated to protecting consumers in the financial sector, if somehow the federal government had both the sophistication and skill set to always know how to best protect the American public. So it’s no surprise that in execution, the agency is squeezing out the financial options available to low-income Americans and basing its regulatory agenda on faulty data.

Washington Times | Broken promise? Obama’s America better for Wall Street than Main Street, stats show

But economists say the rosy statistics mask some real concerns about the underlying strength of the economy, noting that large numbers of Americans have left the job market, and companies are sitting on trillions of dollars of spendable money until they get more clarity from Washington. And beneath all that, a large segment of America's Main Street is becoming increasingly reliant on government help to make ends meet.

American Action Forum | 4 Reasons Taxpayers Should Be Wary of Executive Action on Housing

In a speech today in Phoenix, President Obama is expected to announce a reduction in Federal Housing Administration (FHA) annual premiums of 50 basis points, the latest in a concerted effort to expand credit availability. With recent pressure from affordable housing advocates, the announcement comes as no surprise. Yet this case of political pandering has serious policy implications. While a premium reduction certainly has its supporters, it does not come without a cost.

    On the Horizon 

January 13, 2015 10:00 a.m.
Committee Organizational Meeting

  In the News

Politico | Dem moderates, liberals lash out over Dodd-Frank

Associated Press | U.S. Senate Passes Terrorism Insurance Bill

Politico Pro | Extension of terrorism insurance program clears Congress

Bloomberg | U.S. House Votes to Revive Backstop for Insurers’ Terror Losses

Washington Examiner | House sends terrorism insurance bill to the Senate

Wall Street Journal | ‘Scoring’ Legislation for Growth

Investor's Business Daily | Obama's Regulatory Siege Holds Back The Economy

Daily Caller | Obama Admin. Unleashes 300 Regulations In The First Week Of 2015

Washington Times | Flimsy facts in the economic road show

Posted by on December 17, 2014

This morning, Washington Democrats are feverishly trying to spin Harry Reid’s decision to prevent the Senate from taking a vote on the bipartisan House-passed bill to reauthorize the Terrorism Risk Insurance Act. 

From their seats on their flights home for the holidays, Democrats are trying their hardest to blame TRIA’s demise on the inclusion of a technical clarification of the Dodd-Frank law that, as a standalone measure, passed the House almost unanimously.  That might be true if facts did not get in the way.  Rep. Maxine Waters—the highest ranking Democratic Member on the Financial Services Committee—called this Dodd-Frank language “a truly technical fix” that “would clarify the intent of Dodd-Frank.” 

The truth is that the Senate’s failure to bring the TRIA reauthorization to the floor has nothing to do with the Dodd-Frank clarification.  If that were the case, the bill would not have attracted the support of 417 members of the House, including every Democrat who voted.  And as Politico notes, “Senate Democrats were begrudgingly willing to clear the TRIA package for the president’s signature.” 

The Senate’s failure on TRIA had nothing to do with Dodd-Frank; it has nothing to do with Sen. Coburn’s objection.  It has everything to do with Harry Reid.

He simply refused to bring the bill up in the Senate.  He decided that the bill would either pass by unanimous consent or, apparently, not pass at all.

All Harry Reid needed was a cloture vote and 30 hours (the amount of time permitted for debate after a motion to proceed is agreed to).  He could have easily found 30 hours during the lame duck; timing wasn’t the problem—it was courage.  He chose to prioritize, and fill an entire weekend with, cloture and final votes on other matters instead of TRIA, including judicial and executive branch nominations that were far more controversial than the House’s almost unanimously approved TRIA bill.  Thanks to Leader Reid, on January 1st, the United States will not have a terrorism insurance program, but at least now we will have a newly confirmed Commissioner of Reclamation.

The bottom line:

The House passed a bipartisan TRIA reauthorization bill 417-7.  The Senate’s response? Quit working, leave town, and kill TRIA.

Posted by Staff on November 21, 2014
Hensarling Announces Subcommittee Chairs and Welcomes Republican Members to the Financial Services Committee

"I look forward to working alongside my colleagues to pass laws that help grow the economy from Main Street up, not Washington down,” said Chairman Hensarling. “Our committee will continue to focus on promoting sensible solutions that help create jobs and hold both Washington and Wall Street accountable to the American people."

The subcommittee chairmen for the 114th Congress:

Rep. Scott Garrett (R-NJ) will serve as Chairman of the Capital Markets and Government-Sponsored Enterprises Subcommittee.

Rep. Randy Neugebauer (R-TX) will serve as Chairman of the Financial Institutions and Consumer Credit Subcommittee.

Rep. Blaine Luetkemeyer (R-MO) will serve as Chairman of the Housing and Insurance Subcommittee.

Rep. Bill Huizenga (R-MI) will serve as Chairman of the Monetary Policy and Trade Subcommittee.

Rep. Sean Duffy (R-WI) will serve as Chairman of the Oversight and Investigations Subcommittee.

This list includes new Republican members as well as Republicans who previously served on the committee and will be returning:

Rep.-Elect Bob Dold (R-IL)
Rep.-Elect Frank Guinta (R-NH)
Rep.-Elect French Hill (R-AR)
Rep.-Elect Mia Love (R-UT)
Rep.-Elect Bruce Poliquin (R-ME)
Rep. David Schweikert (R-AZ)
Rep. Scott Tipton (R-CO)
Rep. Roger Williams (R-TX)

Subcommittee Examines the Impact of International Regulatory Standards on the Competitiveness of U.S. Insurers

On Tuesday the Housing and Insurance Subcommittee held a hearing to continue its examination of how international regulatory standards being proposed by the International Association of Insurance Supervisors (IAIS) could impact U.S. consumers and insurers.

Subcommittee Chairman Randy Neugebauer (R-TX) said, "I am concerned that IAIS's role has evolved from being an international coordinator to one of a international promulgator. The IAIS's most recent proposal to harmonize the insurance regulations called 'ComFrame' -- would create a kind of one- size-fits-all regime for global insurers, including some burdensome group-wide capital assessments and prescriptive prudential standards. Members of this committee have expressed concerns with the prescriptive nature of the ComFrame proposal. Many are equally concerned that it seems to be a mechanism for the E.U. to export its consolidated bank-like approach to regulating insurance here in the United States. While this system might work well for our allies across the Atlantic, it is inconsistent with our system of insurance regulation and I don't believe is in the best interest of our consumers and insurers."

Rep. Sean Duffy (R-WI) added, "Many of you may not know, but Wisconsin is the fourth-largest home to insurance in the United States. And those insurers, and our state regulators and policyholders, have been contacting me, concerned over some of the proposals coming out of the International Association of Insurance Supervisors. These proposals could force European-style regulation on our state-regulated system that, as we all know, has developed over the past 200 years. The fact is, unlike Europe, our insurance regulators seek to protect the policyholder: the family with a homeowner, or the life insurance policy, not the insurance company providing the policy. The Treasury and Federal Reserve are supposed to represent that philosophy on the IAIS. But I, like many others, don't necessarily think that they are. They're not listening to the insurers, policyholders, state regulators and lawmakers that are voicing their concerns and offering expertise because a conduit for these stakeholders doesn't exist."

Subcommittee Reviews Opportunities for a Private and Competitive Sustainable Flood Insurance Market

On Wednesday the Housing and Insurance Subcommittee held a hearing to review opportunities for a private and competitive sustainable flood insurance market and discussed H.R. 4558 the Flood Insurance Market Parity and Modernization Act of 2014. The bill is sponsored by subcommittee member Rep. Dennis Ross (R-FL).

"I think one of the reasons that this hearing is so important is that if we're going to move toward a private participation in the market place, we have to get the government out of the way and we need to facilitate the ability for the private sector to be a part of this," said Subcommittee Chairman Randy Neugebauer (R-TX). "Choice brings competitive pricing and if you have the government dominating an area, it doesn't really allow for a lot of private participation."

Rep. Ross agreed, saying “homeowners are trapped in a system that forces them to purchase a taxpayer-backed federal insurance product that was already $24 billion in debt at the end of 2013…Allowing more consumer choice in the government-dominated flood insurance market creates competition and results in better policies and pricing that will benefit homeowners.”


Rep. Sean Duffy | Gun dealer shuts down, lawmaker vows more oversight of Operation Choke Point

Choke Point was originally aimed at preventing criminal enterprises from accessing banks and other parts of the financial system. But many have said the program has expanded dramatically, and is being used to prevent many legal businesses from using the financial intermediaries they need to operate, just because they are opposed by Obama administration officials.

Weekend Must Reads

Real Clear Markets | A New Congress Must Perform Major Surgery On Dodd-Frank

Regulators are not looking forward to heightened congressional oversight of their activities, but the new Congress offers them something to offset the pain. Unencumbered by having voted for Dodd-Frank, the incoming Congress can jettison unnecessary statutory mandates so that agencies can get back to their core missions.

Washington Times | Government bailouts in recession do more harm than good

Mr. Grant's history lesson is one that all lawmakers could take to heart. The economy recovers much more quickly, with much less cost to taxpayers, if economic downturns are allowed to run their course. When the government arrives to "help," trouble begins. This is history President Obama and Congress should have read, and heeded, before blowing $3 trillion on stimulus programs and bailouts that probably hurt more than helped.

Wall Street Journal | Now Federal Job-Killers Are Coming After Derivatives

With 10 million fewer Americans working full-time today than six years ago, it is not in the nation’s economic interest for Washington regulators to cause good-paying, full-time jobs to be eliminated. This overreach is just one of many in a regulatory environment that has become a major drag on the U.S. economy. Federal regulations now cost the U.S. more than 12% of gross domestic product, or $2 trillion annually, according to the National Association of Manufacturers. The average manufacturing firm spends almost $20,000 per employee per year on complying with federal regulations. For manufacturers with fewer than 50 employees, the per-employee cost rises to almost $35,000.  

  In the News

CNBC | Republicans looking to turn up heat on Fed in 2015

Wall Street Journal | U.S. to Probe Abuse-of-Power Claims in Financial Fraud Crackdown

Bloomberg | Private Insurers Tell House They Are Still Left Out of National Flood Insurance Program

Bloomberg | McHenry Says Insurance Capital Standards, FSOC Changes Can Get Democrats' Backing

Washington Examiner | GAO says CFPB's spending accounting flaws are serious, require prompt fixes

American Banker | GAO Report Finds Flaws in FSOC Designation Process

Bloomberg | House Lawmakers See Problems With IAIS Despite Assurances of Federal Regulators

American Banker | Streamlined Regulation Should Be the Next Frontier of Financial Reform

Washington Business Journal | Dodd: 'I didn't write the Ten Commandments with this bill' (Video)

American Banker | FHA Fund Improves, But Lower Premiums Still Unlikely