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McHenry Applauds FDIC’s Move to Revamp Regulations that Hinder Financial Innovation

Washington, Jun 25 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement in response to the Federal Deposit Insurance Corporation’s (FDIC) vote to finalize its Valid-When-Made rule and amend the overly-burdensome Volcker rule:

“The regulatory uncertainty caused by the ‘Madden’ decision drives lenders away and hurts borrowers. The FDIC’s finalized Valid-When-Made rule provides clarity to banks and non-banks that loans do not become invalid simply because they are transferred. This is essential to innovation and competition in lending and will lead to improved access to credit for millions of Americans. I applaud Chair McWilliams for her work to foster financial technology and rightsize the regulations that stifle it.  

“Additionally, today’s move by the FDIC Board of Directors to approve updates to the interagency Volcker Rule regime will simplify and focus the rule’s covered funds restrictions. This final rule will allow for greater flexibility for investment in innovative companies—benefitting investors, consumers, and startups alike.”

Ranking Member McHenry has identified these rulemakings as a critical part of Republican’s regulatory rightsizing agenda and has pushed for this—and additional rules—to be finalized quickly to spur long-term and widespread economic recovery from COVID-19.