WEEK IN REVIEW
Washington,
April 29, 2016 -
House’s Week Focuses on Committee Bills
The House of Representatives passed four bipartisan Financial Services Committee bills this week, marking another week of House activity that focused on the Committee’s work.
Since the beginning of the 114th Congress in January 2015, the House has passed 60 Financial Services Committee measures – 30 of which have been signed into law.
“Each one has received bipartisan support. In an era of divided government, that’s not a bad record,” said Chairman Jeb Hensarling (R-TX) on the House floor. “I am proud that our committee has a strong track record of bipartisanship.”
The bipartisan bills considered and approved by the House this week are:
H.R. 4498, the Helping Angels Lead Our Startups (HALOS) Act
Sponsors: Reps. Steve Chabot (R-OH), Robert Hurt (R-VA), Kyrsten Sinema (D-AZ) and Mark Takai (D-HI)
The bill defines an “angel investor group” and clarifies a regulation issued by the Securities and Exchange Commission so it will be easier for startup companies to attract investments, grow and create job opportunities.
H.R. 4498 attracted broad bipartisan support and passed the House on Wednesday 325-89. The bill passed the Financial Services Committee in March by a vote of 44-13.
H.R. 2901, the Flood Insurance Market Parity and Modernization Act of 2015
Sponsors: Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL)
H.R. 2901 amends the Flood Disaster Protection Act to clarify that flood insurance offered by a private carrier outside of the National Flood Insurance Program can satisfy the Act’s mandatory purchase requirement. The bill gives homeowners more options when it comes to insuring their homes against flooding.
H.R. 2901 passed the House on Thursday by a vote of 419-0. It passed the Financial Services Committee by a vote of 53-0 on March 2.
H.R 4096, the Investor Clarity and Bank Parity Act
Sponsors: Reps. Michael Capuano (D-MA) and Steve Stivers (R-OH)
H.R. 4096 amends the Dodd-Frank Act’s “Volcker Rule” so an investment adviser affiliated with a bank could share the same name or a similar name with a hedge fund or a private equity fund. This change will help ensure that Main Street businesses and banks have access to affordable financing and growth capital.
H.R. 4096 passed the House on Tuesday by an overwhelmingly bipartisan vote of 395-3. The bill passed the Financial Services Committee by voice vote on March 2.
H.R. 5019, the Fair Access to Investment Research Act of 2016
Sponsors: Reps. French Hill (R-AR) and John Carney (D-DE)
This bill directs the SEC to provide a safe harbor for research reports that cover Exchange Traded Funds so these reports are not considered “offers” under securities law.
H.R. 5019 passed the House on Thursday by a strong bipartisan vote of 411-6.
H.R. 5019 is substantially similar to H.R. 2356, which passed the Financial Services Committee on May 20, 2015 by a vote of 48-9.
Holding Multilateral Development Banks Accountable
The Monetary Policy and Trade Subcommittee on Wednesday held a hearing to examine ways the U.S. can make Multilateral Development Banks (MDBs) more accountable.
Subcommittee Chairman Bill Huizenga (R-MI) said, “Currently, the Obama Administration is undertaking negotiations for a three-year replenishment of the World Bank’s and African Development Bank’s concessional loan windows and is also in discussions to alter how other institutions, including the Inter-American Development Bank, finance future initiatives. Additionally, the Administration has proposed a doubling of the North American Development Bank’s capital, the first such increase in history. Today’s hearing is critical to examine the Obama Administration’s plans regarding these matters, many of which are contingent on congressional authorization, as well as addressing whether development banks are improving outcomes for low-income beneficiaries in a cost-effective manner.”
The Obama administration should reject mission creep for the MDBs by focusing on the world’s poorest, not by subsidizing middle-income countries that can borrow from the private sector.
During the hearing, Under Secretary for International Affairs Nathan Sheets said Greece “would not have access to the International Monetary Fund’s exceptional lending facilities in the next phase of its bailout without making the country’s debt sustainable,” according to a report by Reuters.
Member Spotlights
Rep. Andy Barr (R-KY) | U.S. Rep. Andy Barr Urges CFPB Reform at ACA’s Washington Insights Conference
U.S. Rep. Andy Barr (R-Ky.) spoke to attendees at the ACA International's Washington Insights Conference about his efforts to increase accountability at the Consumer Financial Protection Bureau.
Rep. Tom Emmer (R-MN) | Oversight over financial regulators offers a constitutional check on bureaucracy
As a member of Congress, it is part of my job to listen to my constituents, to those who hired me. A great desire for more transparency and accountability in our state and federal government is something that I have heard ever since I first ran for office. The other part of my job is to actually do something about the concerns of my constituents. Unfortunately, that part of the job has grown increasingly difficult and sometimes impossible for representatives.
Rep. Lynn Westmoreland (R-GA) | Westmoreland bill passes House committee
“Georgia’s community banks were devastated by the recession and continue to suffer under Dodd-Frank today,” said Rep. Westmoreland.
Weekend Must Reads
Milwaukee Journal-Sentinel | The Rules That are Choking Wisconsin’s Community Banks
Community bankers complain bitterly about the avalanche of new rules that came rushing downstream after passage of the 2010 Dodd-Frank Act, a well-intentioned but poorly designed law that came as fallout from the financial debacle. “The regulations under Dodd-Frank are crushing community banks,” says David Schuelke, president and chief executive at Wisconsin’s newest bank.
Investor’s Business Daily | How Overregulation Is Killing The Economy
The most onerous overregulation is Dodd-Frank, whose burdensome costs fall disproportionately on small community banks with fewer employees. Dodd-Frank has led to a decline of over 40% in such smaller banks, which specialize in loans to small businesses, whose growth has been badly lagging. The Federal Reserve reports that the sharp decline in commercial banks has been driven by the dearth of new bank formation since Dodd-Frank was adopted, with zero new banks in 2012, and just one in 2013.
American Banker |CFPB's Court Challenges Could Have Been Avoided
Had the architects of the CFPB pursued a commission structure, we would not have had to contemplate the questions now before the courts. A commission could have provided for a more measured approach and balance of power in the execution of the agency’s mandate.
Orlando Sentinel | Dodd-Frank provides a false sense of security
Dodd-Frank is bad law because it increases regulators’ authority to micro-manage financial risks and further enshrines the so-called emergency measures that the government employed during the 2008 crisis. These measures give creditors and capital suppliers less incentive to be careful. Dodd-Frank is merely the next step in the Big Government policy parade that produced the 2008 crisis.
In the News
Wall Street Journal | U.S. Growth Falters Amid Consumer, Business Caution
The Hill | Study: Federal regs cost economy $4 trillion in one year
Forbes | House Republicans say Justice Department handing out slush funds
Morning Consult | Flood insurance bill passes House
National Mortgage News | House passes private flood insurance bill by unanimous vote
The Hill | House rejects financial adviser rule
Bloomberg BNA | House passes exchange-traded fund research bill
Politico Pro | Investment rule change divides House Democrats
Politico Pro | House passes Volcker Rule change with ease
Washington Examiner | Savior Obama’s Lame Economy Limps Along
Wall Street Journal | Make America Grow Again
