By Phil Gramm and Steve McMillin President Obama has raised the national debt by nearly $6.2 trillion, the equivalent of $78,385 per family of four. It is true that projected deficits recently have been reduced. April tax filings increased 28% from 2012, but much of this was thanks to a one-time rush at the end of 2012 to report income before rates rose in January. The second largest reduction in the deficit came from Fannie Mae taking a one-time accounting adjustment. But unless the economy soars, or a significant budget agreement is reached, the most lasting legacy of the Obama presidency w... Read More »
Tomorrow, Treasury Secretary Lew will deliver his annual report on the Financial Stability Oversight Council (FSOC). Here’s three things you need to know about FSOC: 1. The FSOC is failing to effectively monitor and mitigate systemic risk The Government Accountability Office (GAO) noted in an audit report to Congress in September 2012, the FSOC has “not developed a structure that supports having a systematic or comprehensive process for identifying potential emerging threats.” And just last month, witnesses testifying on behalf of the Federal Reserve and Federal Deposit Insurance Corporation ... Read More »
Five hearings -- including Treasury Secretary Lew’s first testimony before a House committee since the IRS scandal -- make for another busy week at the House Financial Services Committee. Be sure to check back here on the Bottom Line Blog -- and subscribe to our email lists -- for updates throughout the week. Here’s what’s happening: On Tuesday the Financial Institutions Subcommittee kicks off the week with a hearing on the CFPB’s “ability to repay” rule at 10 a.m. And later, the Monetary Policy & Trade Subcommittee explores the unintended consequences of Dodd-Frank’s conflict minerals provis... Read More »
Wall Street Journal: How to Let Too-Big-To-Fail Banks Fail Dodd-Frank does not end the threat of taxpayer bailouts. A reform to the bankruptcy code will do the trick. The Hill: Implementing the vision of financial reform There are three distinct phases of leadership when attempting to implement change: vision, structure and implementation. This same process can be applied to congressional leadership regarding U.S. financial reform. Bloomberg: The Question the Fed Should Be Asking Ed Koch, the late mayor of New York City, used to stop residents on the street and ask, “How am I doing?” With next... Read More »
Capital Markets & GSE Subcommittee Chairman Scott Garrett stopped by to tell us about H.R. 1062, the SEC Regulatory Accountability Act. H.R. 1062 is common-sense legislation that essentially codifies President Obama's Executive Order No. 13563 with regard to the Securities and Exchange Commission. Read More »
At today's oversight hearing with SEC Chairman Mary Jo White, Chairman Hensarling said the IRS scandal causes Americans to wonder “just how pervasive the IRS’s tactics of harassment” are within the administration and whether a proposal before the SEC raises similar concerns that political opponents of the administration could be targeted. Click here for his full opening statement. Here's what they're saying; Bloomberg Businessweek: SEC’s White Rebuffs Call to Forswear Political Spending Rule Representative Jeb Hensarling, the Texas Republican who leads the Financial Services Committee, sought ... Read More »
Yesterday, Capital Markets & GSE Subcommittee Chairman Scott Garrett held a roundtable discussion on stock market structure in New York. Before the event, Rep. Garrett took a few minutes to speak to CNBC’s Bob Pisani about the roundtable as well as his broader thoughts on the Securities and Exchange Commission in light of this week’s hearing with SEC Chairman Mary Jo White. Read More »
Problem: As an independent agency, the Securities and Exchange Commission (SEC) is not currently subject to President Obama’s Executive Order No. 13563. The order directs non-independent executive branch agencies to perform a cost-benefit analysis on proposed regulations, tailor those regulations to impose the least burden on society, and retrospectively analyze old rules to identify those ripe for repeal. Example: Last year, the U.S. Court of Appeals for the DC Circuit unanimously concluded that in promulgating a rule related to corporate board elections, the SEC “inconsistently and opportun... Read More »
Three hearings, two suspensions and one rule bill on the floor makes for a busy week at the Financial Services Committee. Be sure to check back here on the Bottom Line Blog -- and subscribe to our email lists -- for updates throughout the week. Here’s what’s happening: On Wednesday the House will vote on two bipartisan bills under suspension of the rules. Bills under suspension require a two-thirds majority for passage. The first, H.R. 384, the Homes for Heroes Act of 2013 helps ensure veterans have fair access to HUD housing and homeless assistance programs by establishing a Special Assistan... Read More »
Bloomberg: Tea Party Rant II Awaits Next Homeowner Bailout On Feb. 19, 2009, CNBC editor Rick Santelli let loose on the floor of the Chicago Mercantile Exchange in response to President Barack Obama’s proposal to subsidize underwater mortgages. Santelli’s famous rant gave birth to the Tea Party. Obama’s proposal gave way to numerous initiatives, known by the catchy acronyms HAMP and HARP (but not HARM), all of which fell short of the administration’s initial goals. UK Telegraph: China may not overtake America this century after all Doubts are growing about whether China can pass the US to beco... Read More »
