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Chairman Hensarling Delivers Opening Statement at Committee Markup

Washington, Jun 7 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening statement as the committee began consideration of six measures on Thursday:

Our nation’s economy continues to be the envy of the world. Our ability to average over 3% annual growth is both an enviable and unparalleled record in world history – it helps define American exceptionalism.

Currently, we’re seeing the nation’s unemployment rate at its lowest level in nearly half a century. Wages are up. And consumer spending is on the rise.

Much of the work done here – in this Committee – to improve our nation’s financial system and increase access to both financial freedom and choice for millions of consumers has, without a doubt, helped play a significant role this economic success.

Most recently, Congress passed the most significant pro-growth banking bill in nearly a generation.

But more can and must be done to help job creators thrive.

While S. 2155 clearly, clearly was a much-needed community bank relief bill, it did not check the box for dynamic capital formation reform that is needed for us to sustain and keep long-term 3% plus economic growth.

One of the reasons is our economy derives 80% of its business debt financing from capital markets, not from banks, and S. 2155 was substantially a banking bill. It contained only modest capital formation provisions, and again in order to sustain long-term 3% capital growth, for us to achieve our full economic potential, we must indeed engage in more capital formation support.

Small banks, credit unions, mid-sized, and regional banks as well as investment banks and global banks finance the goals, the dreams, and aspirations of our citizens. Clearly our local community banks or credit unions can provide consumers with a checking account, car loan, or home mortgage; but more often than not, it is our capital markets that finance their careers, their salaries, and their retirement plans. 

That’s why over the last seven months, this Committee has been busy passing many pro-growth capital formation measures not just targeted to banks, but to angel investors, to insurance brokers, to broker-dealers, and venture capitalists as well.

Today, we will consider six more important measures from hardworking members who have cooperated often, most of these bills on both sides of the aisle, and I want to thank members from both sides of the aisle for their contribution in turning these ideas into solid legislation for capital formation reform.

This should be a bipartisan effort, not unlike the JOBS 1.0 or the JOBS 2.0 efforts in previous Congresses. As President Barack Obama said when he signed JOBS 1.0 into law, “this is one important step on the journey to remove a number of barriers that were preventing aspiring entrepreneurs from getting funding.” What President Obama said a number of years ago remains true today. We should work on a bipartisan basis to remove these barriers. Again, it is multiple steps over multiple Congresses to remove barriers that are preventing aspiring entrepreneurs from getting funding.

If these measures are reported favorably today, we will have marked up a total of [108] bills so far this Congress. If you thought, Members, you were busy, yes you have been, and this is quite an accomplishment that you should be proud of.