financialservices.house.gov
Cmte Financial Services (R)
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WEEK IN REVIEW
Washington, Mar 24 -
Treasury’s Failure to Comply Results in Subpoenas The Treasury Department’s refusal to comply with a subpoena and respond to numerous other requests for information led the Financial Services Committee to subpoena four Treasury officials this week. During a hearing on Tuesday, committee Republicans and Treasury Secretary Jack Lew “sparred over Treasury’s transparency,” reported Bloomberg BNA. In its coverage of the hearing, Politico said Republicans “pounded” Secretary Lew with questions about the department’s “non-compliance with subpoenas and requests for information for years, including details sought on preparations for breaching the debt limit.” “Regrettably and inexcusably, the Treasury Department for over two years has stonewalled, obfuscated and misled Congress as our committee has investigated Treasury’s contingency planning for the debt ceiling. That is why we recently issued a staff report entitled, ‘The Obama Administration’s Debt Ceiling Subterfuge.’ I believe the report clearly reveals that Treasury has sought to withhold from Congress and the American people information about their contingency plans, this for the purpose of pressuring Congress to acquiesce to the Administration’s position that there only be a naked debt ceiling increase without any reforms or fiscal discipline,” said Chairman Jeb Hensarling (R-TX) in his opening statement. Secretary Lew claimed during that hearing that Treasury has sent the committee “thousands of pages” of information. But Oversight and Investigations Subcommittee Chairman Sean Duffy (R-WI) pointed out that of the 1,035 pages Treasury provided, “664 of those pages were news clippings, letters to members of Congress, CRS reports, hearing transcripts and public information. Another 223 pages was private sector research from Finch, Barclays, Merrill Lynch. Another 109 pages was from the Bipartisan Policy Center. And then, 39 pages was a memo on the 1985 debt limit impasse. This isn’t the documents that we requested.” Subcommittee Investigates Impact of Housing Regulations The Subcommittee on Housing and Insurance examined how government regulations can hinder the development of affordable housing at a hearing on Tuesday. “Government has inserted itself into the business of housing by mandating affordable housing and community reinvestment while simultaneously stifling creation of affordable housing and community reinvestment. It’s time to promote the development and availability of housing for low- to mid-income Americans, not restrict it,” said Chairman Blaine Luetkemeyer (R-MO). The subcommittee heard testimony from a panel of witnesses that 40 percent of rental costs are due to regulation and that 25 percent of the price of an average single-family home built for sale is attributable to regulation. MEMBER SPOTLIGHT Rep. Patrick McHenry | Congressional Republicans Preparing Fintech Promotion Legislation A group of House Republicans is crafting a legislative package aimed at helping financial-technology companies expand by shielding them from emerging regulatory constraints. Rep. Patrick McHenry (R-NC) told reporters Thursday that Republicans are preparing a legislative package called “Innovation Initiative” that would outline a regulatory framework he said would encourage growth in “fintech” and online investor pools like crowdfunding and angel investing, who typically raise seed money for startups. Weekend Must Reads Residential mortgage transactions used to be simple. That was before the Consumer Credit Protection Act of 1968, which marked the beginning of an avalanche of purportedly consumer-friendly laws that has continued to this day with questionable benefits. Bloomberg View | Home Is Where the Inflation Is The U.S. Federal Reserve has had a tough time getting inflation back up to desired levels. There's one area, though, where it may be having a bigger effect than some of its major foreign counterparts: house prices. American Banker | The Case for a CFPB Commission Upon its creation, the Consumer Financial Protection Bureau was organized to operate with as little oversight as possible. The bureau is technically under the Federal Reserve, but that provides the CFPB with a budget that is a fixed percentage of the Fed's operating expenses. This effectively keeps the CFPB from having to appear before Congress for any funding oversight. But more to the point, its organizational structure has the entire bureau reporting to a single director, presumably to help the CFPB avoid the delays and compromises inherent in organizations led by a commission. AP | Obama Administration Sets Record for Failures to Find Files When Asked The Obama administration set a record for the number of times its federal employees told disappointed citizens, journalists and others that despite searching they couldn’t find a single page requested under the Freedom of Information Act. Bloomberg BNA | Lew, Financial Services Panel Clash Over Debt Limit Plans Politico Pro | Hensarling, Shelby press regulators on toxic mortgage sales Morning Consult | House Panel Leans on Treasury Employees for Lack of Transparency Politico Pro | House Republicans subpoena four Treasury officials in FSOC dispute DS News | Is Regulation Hurting the Affordability of Housing? Bloomberg | Decision on Mortgage Relief Seen in 30 Days, FHFA's Watt Says Investment News | DOL, SEC fiduciary rules may diverge, Mary Jo White tells lawmakers
American Banker |Onslaught of Mortgage Rules Is Worse than Many Realize
In the News
Washington Examiner | Republican tells Lew: 'You are the epitome of what's wrong in Washington'