Patrick McHenryChairman

WASHINGTON- Financial Services Committee Chairman Jeb Hensarling (R-TX) delivered the following opening statement at today’s full committee markup of bills that repeal the Dodd-Frank Act’s bailout fund and make the CFPB more accountable to taxpayers by putting its spending on budget:

We have two bills that are before us today and the underlying matters are well vetted before this committee.

One bill, authored by the gentleman from Georgia, Mr. Westmoreland, would terminate the Orderly Liquidation Authority of the Dodd-Frank Act.

The other would ensure the CFPB is placed on budget, a bill authored by the gentleman from Kentucky, Mr. Barr.

With respect to the OLA bill, I would remind all Members that last evening they had the opportunity -- as just about every Member did -- to vote for a bankruptcy bill for large, complex financial institutions. A bipartisan bill, not within this committee’s jurisdiction, but within the jurisdiction of the Judiciary Committee. It was passed overwhelmingly last night and I hope that it will enjoy swift passage through the legislative process and be signed by the president into law.

It is important because what this bill does is represent another opportunity to reaffirm that when it comes to the resolution of these large, complex financial institutions should we have bailouts or should we have bankruptcy?

I think most people, particularly on the Republican side of the aisle, believe there should be bankruptcy. No sweetheart deals, no more AIG deals where foreign creditors get 100 cents on the dollar; the bankruptcy process is far superior. There is no one financial institution that should be deemed “too big to fail” and others “too small to matter.”

It was an important bill that was passed last night and this is a compliment to it to ensure there is an improved bankruptcy process for these institutions. But, it needs to be a bankruptcy process and it needs to be done without- without taxpayer funds.

Now for those of you who are somehow saying taxpayers will be compensated for their loss, we heard the same things regarding the National Flood Insurance Program. We’ve heard the same thing with respect to the FHA bailout. We’ve heard the same thing with respect to PBGC. We’ve heard these promises before that taxpayer funds are not at risk. Lo and behold, it proves that they are. Again, it’s a very simple matter: for large, complex financial institutions, do you want bankruptcy or do you want bailouts?

With respect to the CFPB, we will continue to debate the activities of this particular rogue agency. But there is a very important principle involved regardless of whether or not we are dealing with the CFPB or any other government agency and that is Congress’ Article I authority to make laws; Congress’ Article I authority to exercise the power of the purse.

Every government agency should be accountable to the elected representatives of “We the People” and the CFPB should not be an exception to that rule.

We have the Pentagon which is on budget. We have the Justice Department which is on budget. There is certainly no greater duty we have than to provide for the common defense, and we do not let the Pentagon write its own budget.

We should not let the CFPB write its own budget. It is a base matter of congressional oversight and of Article I authority. And in this particular case, this is an agency that is so deserved of oversight. Merely attending a hearing and sitting in a witness chair is no substitute for actually having the agency on budget.

I would remind my friends on the other side of the aisle that not only are they on the other side of the aisle, but at some point the shoe will be on the other foot. At some point the White House will change hands. At some point the Congress will change hands. Do they want a CFPB head who might request $8.47 as the entire budget for the CFPB and have absolutely no voice in the matter? I would have my friends on the other side of the aisle contemplate that.

I’m happy to say also, as I look at the National Debt Clock spinning out of control, that both of these bills, according to the Congressional Budget Office that I have been known to quibble with on occasion, score as direct savings. This is not unimportant as we watch our unsustainable national debt roll out of control.

I look forward to passing these bills through this markup today. I commend the gentlemen from Georgia and Kentucky for their leadership.