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Chairman Hensarling Reacts to Ranking Member's Comment That 'Too Many Folks' Believe Community Banks Need Regulatory Relief

WASHINGTON - , Jul 25 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) reacted to comments made on Tuesday by the committee’s ranking member, Rep. Maxine Waters (D-CA), that overregulation of community banks is a myth “that too many folks have bought into”:

“Some Democrats may deride small towns as ‘flyover country,’ but in many places community banks are the only available option for hardworking Americans in need of a loan, a mortgage or other banking services.  They make a disproportionate share of loans to small businesses and farmers.  They play a vital – and irreplaceable – role in growing local economies.  Yet they are an endangered species thanks to Washington’s regulatory waterboarding.  Our nation is losing community financial institutions at a rate of one per day.  They simply cannot keep up with the flood of rules imposed by Washington and so their customers and our economy suffer.

“With all due respect to the Ranking Member of my committee, this is no myth; this is the reality that hardworking Americans live with every day.  Excessive regulation is taking away their opportunities to make a better life for themselves and achieve financial independence.  She made these comments standing alongside Nancy Pelosi and Elizabeth Warren.  The question must be asked:  Do they and other Democrats also believe overregulation of community banks is a myth?

“Despite the ranking member’s opposition, our committee will continue to focus on regulatory relief for community banks and credit unions as much as possible.  Congress must pass regulatory relief before it is too late.”

At a press conference earlier today with Senator Elizabeth Warren (D-MA) and Minority Leader Nancy Pelosi (D-CA), Rep. Waters said the following:

“One of the arguments that the Republicans have been effective in advancing is overregulation and oftentimes I’m confronted with questions about 'When are you guys going to do something about the overregulation of the community banks? When are you guys going to deal with the fact that you should be concerned about the fact that the economy does not work as well because of too many regulations?' And it seems that too many folks have bought into that and I’m oftentimes asked this over and over again by the media.”

The Financial CHOICE Act, H.R. 10:

In June, the House passed the Financial CHOICE Act sponsored by Chairman Hensarling, legislation aimed at ending bank bailouts, promoting economic growth and providing regulatory relief.  The Congressional Budget Office reports the Financial CHOICE Act would reduce the deficit by $33.6 billion over 10 years and that the bill’s regulatory relief would benefit community banks and credit unions.  The nation’s largest banks would be unlikely to raise enough capital to meet the bill’s requirement for substantial regulatory relief, the CBO reported.