Cmte Financial Services (R) RSS Articles

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Reviews Derivatives’ Role in the Treasury Market

Thu, 30 Apr 2026 04:00:00 GMT

Yesterday, the Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity, led by Chairman Frank Lucas (OK-03), held a hearing entitled, “Examining Derivatives’ Role in the Treasury Market.” Members reviewed how derivatives, such as futures and swaps, interact with the Treasury markets and increase market liquidity.

On Treasury Market Resilience:

Task Force Chairman Lucas said, “It’s important that Congress continues to support the resilience of the Treasury derivatives markets as these instruments are so closely linked to the bedrock of the global financial system. We must especially pay attention now as the industry undergoes a fundamental market structure shift with the looming deadlines for central clearing of Treasury cash and repo in December and next June, respectively.”

Full Committee Chairman French Hill (AR-02) said, "The strength of the U.S. Treasury market depends not just on its size, but on its depth, liquidity, and resilience. Today we will examine how derivatives markets support that foundation. These instruments play a critical role in price discovery, risk management, and overall market functioning—and when used effectively, derivatives certainly can enhance liquidity in Treasury markets, ensuring greater stability.”

On the Importance of Derivatives:

Full Committee Vice Chairman Bill Huizenga (MI-04) questioned witnesses on how companies can hedge risk efficiently using derivatives, to which Mr. Kevin McPartland, Head of Research, Market Structure and Technology, Crisil Coalition Greenwich, responded, “What we want corporations to focus on is building those products and services and making them accessible and as affordable as they can, giving the input costs. So, what derivatives allows them to do is focus on that right to focus on the product and the consumer and growing without as much having to worry about fluctuations in whether it be financial markets or agriculture or energy markets. This is arguably or maybe not arguably why the derivatives market was created.”

Housing and Insurance Subcommittee Chairman Rep. Mike Flood (NE-01) questioned witnesses on what a well-functioning futures market would mean for American farmers, to which Mr. Terrence A. Duffy, Chairman and Chief Executive Officer, CME Group, said, “I think it's critically important that the commercials and producers have the characteristics of the futures contract. Futures contracts were never designed for speculators. Speculators are embraced in futures markets, but they're not made for speculators. They're made for the commercials and producers. And that's a critical component. And I think we've lost a little bit of our sight going forward on that part. So, I'm a big proponent of speculation in markets, because I think it helps create liquidity for the market, because of a commercial wanting this price and a producer wanting that price. We need somebody to fill that in. I think for the great people in Nebraska and for the people of this world that need food, which comes out of Nebraska and other great midwestern states, we need to make sure it's efficient, and we need the ecosystem to work properly. So, I would hope that this congress would recognize the importance of all the ecosystems that go into allowing people to risk manage that, the food that we consume in this country, and that we ship across the world.”

On the Previous Basel III Proposal:

Financial Institutions Subcommittee Chairman Andy Barr (KY-06) questioned witnesses on how the previous Basel III Endgame proposal disadvantaged central clearing, to which Mr. McPartland responded, “Thankfully, we've seen an uptick in bank holdings of U.S. Treasuries. That's a great advancement and that's what we want. That is what those primary dealers are there for. But the previous or existing rules, in some ways, penalized banks for those holdings. They didn't recognize the true risk, right? So offsetting the derivatives with the bonds, right? Really that neutralizes a lot of that risk.”

Rep. Troy Downing (MT-02) questioned witnesses on how the Basel III reproposal alleviates issues caused by the 2023 proposal in regard to banks use of derivatives, to which Mr. Jeff Cranston, Head of Corporate Strategy, Optiver, replied, “I would first just want to highlight again that the Basel reproposal is a significant step forward for central clearing for the ability for, FCMs and prime brokers to be able to support that increased demand, as well as continue to support the entire derivatives landscape. So, I think significant progress has been made on that and look forward to continued process of prudential rulemaking. I think an additional area that could have further benefit for derivatives is recognizing the cross-product netting within derivatives, as well as the cross-margining aspect, and ensuring that those risk reducing attributes are reflected properly in risk-based capital measures.”

Witnesses Echoed the Work of the Committee:

Mr. McPartland said, “The transparency of this critical market has also seen tremendous growth. We have transitioned from weekly volume reports in 2020 that included only primary dealer activity to the current reporting regime that provides public access to daily trading activity by market segment, and the details of nearly every on-the-run U.S. Treasury coupon bond traded each day. This has brought the Treasury market more closely in line with other U.S. securities and listed derivatives markets, ensuring that investors and market participants of all types and sizes have the information they need to make informed decisions.”

Mr. Duffy said, “Derivatives are foundational to the price discovery, liquidity, and functionality of the U.S. Treasury markets. Highly liquid Treasury futures allow market participants to secure risk management hedges in customizable sizes without having to source the individual Treasury securities. … By providing a highly liquid and transparent, on-going, auction system, Treasury futures provide a forum for markets to quickly price in new and emerging information, assess the risk participants are seeking to hedge, evaluate market predictions, and achieve a clearer understanding of the future price of Treasury securities. The cash-futures basis trade serves as a link that brings market efficiency and forces prices to converge at settlement.”

Mr. Cranston said, “The U.S. Treasury market is one of the most important financial markets in the world. It provides the primary mechanism through which the federal government funds itself. Treasury securities serve as a primary benchmark of safe and liquid assets for banks, money market funds, pension plans, and central banks, enabling them to manage liquidity, secure financing, and store value. Maintaining a resilient and liquid Treasury market is critical to economic stability and to preserving the U.S. dollar’s role as the world’s reserve currency. Derivatives play a central role in supporting liquidity, enabling the transfer of risk, and promoting efficient price discovery and more orderly price movements in the Treasury market.”

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Hill, Barr on CFPB’s Final 1071 Rule

Thu, 30 Apr 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) and Financial Institutions Subcommittee Chairman Andy Barr (KY-06) issued the following statement on the Consumer Financial Protection Bureau’s (CFPB) final rule on Section 1071:

“We commend the CFPB’s final rule on small business lending data collection. While the previous administration’s flawed regulation would have risked cutting off credit to the small businesses that need it most, this revised approach will reduce complexity for lenders, strengthen privacy protections, provide more workable compliance timelines, and better reflect the realities of relationship-based small business lending.

“At the same time, Congress has an important role to play to codify these changes and make additional statutory reforms. Financial Services Committee Republicans support a repeal of Section 1071 of the Dodd-Frank Act but have advocated for reforms like those in the Small LENDER Act, which would exempt smaller institutions, extend compliance dates, and ensure the regulation is voluntary.

“This final rule is a step in the right direction and will help ensure a strong, competitive lending market that delivers access to credit for small businesses across Arkansas, Kentucky, and the country.”

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Full Committee Reviews Updated Basel III and Capital Framework Proposals

Wed, 29 Apr 2026 04:00:00 GMT

Yesterday, the House Committee on Financial Services held a hearing examining how the Trump Administration’s revised capital proposals, including Basel III, are appropriately right-sized to strike the proper balance between safety and soundness and economic growth.

On 2026 Proposals Compared to 2023 Basel III Proposal:

Subcommittee on Financial Institutions Subcommittee Chairman Andy Barr (KY-06) said, “Last Congress, this Committee devoted significant time encouraging our banking regulators to get bank capital right. We called for a careful assessment of both the costs and benefits of Basel III finalization and a recognition that banks today hold substantially more – and higher-quality – capital than they did two decades ago. We were clear that the original 2023 proposal lacked sufficient economic analysis, failed to account for overlapping requirements, and risked unnecessary disruptions to essential bank lending and capital markets activities. It is encouraging to see our banking regulators under the Trump Administration address many of these bipartisan concerns and move to a more pro-growth, tailored, and evidence-based approach in their recently released capital proposals. These proposals reduce unnecessary complexity and gold-plating that put U.S. banks at a competitive disadvantage."

On Supporting Market Stability and Economic Growth:

Full Committee Vice Chairman Bill Huizenga (MI-04) said, “American capital markets are the broadest and deepest in the world, and it is important that bank capital requirements promote their proper functioning. The prior administration’s overly punitive proposal would have had significant consequences for banks’ securities underwriting, derivative hedging, securitization, and equity investments in funds. The revised proposal does more to ensure that banks continue their crucial work as intermediaries and that risks flow to those most able to manage them.”

Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil (WI-01) questioned witnesses on how the revised capital proposal framework improves on the flawed 2023 version for Americans looking to own a home, to which Mr. Robert D. Broeksmit, President & Chief Executive Officer, Mortgage Bankers Association said, "Well, one of the main improvements as it relates to mortgages in this newer proposal, for which we commend the regulators, is to get rid of this gold plating. The previous proposal had as much as a 40% increase in how much capital a bank would have to hold to keep a loan on its balance sheet. And that's done away with in this proposal. This proposal has also made the capital that you need to retain lower if the borrower has more equity, which makes common sense — if you have a failure, you're not going to have a loss."

Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) asked Mr. Greg Baer, President & Chief Executive Officer, Bank Policy Institute, to outline why the higher capital requirements under the Biden Administration’s Basel III proposal were counterintuitive and constrain banks’ ability to lend, to which Mr. Baer replied, "There is a cost and the most expensive way for a bank or any other company for that matter, to fund itself is through equity. And that is why most companies try to diminish the amount of equity that they have to hold. Again, as someone who's worked inside a bank, you, the CFO, the corporate folks, they know how much equity costs, they know their cost of capital. And they monitor it and they meet it out to the lines of business that can earn the highest return on that equity. They do not ignore the cost of equity. And of course, if you read any analyst's report, talk to any investor — they're all very focused on this proposal. Under that analysis, they would be completely indifferent because the increase in costs for equity would be matched by a decrease in costs for debt. But everybody operating in the markets, all people who invest in banks, know that's not the case."

Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Chairman Frank Lucas (OK-03) said, “The Basel re-proposal we're discussing today is a dramatic improvement from the 2023 proposal, and I laud Vice Chair Bowman's hard work to release it less than a year after assuming a role... This proposal ensures capital requirements do not reduce our lending capacity, market liquidity, or other market making activity that banks provide to support the economy. The previous Basel proposal received a record volume of comments expressing concerns over the negative impact it would have had on lending capacity in our banking systems.”

Rep. John Rose (TN-06) questioned witnesses on how increased bank capital requirements could threaten liquidity in agricultural futures markets and harm producers and end users, to which Mr. Reginald Griffith, Global Head of Regulatory Compliance, Louis Dreyfus Company, on behalf of the Commodity Markets Council said, "I think the biggest concern would be that the sector isn't able to fully manage its risks. That's number one. And as bank capital requirements go up, our access to clearing could potentially be limited. So that leads to not only higher prices, but it leads to more risk that's pushed down the food chain. Farmers — I know we don't want banks to go under, but we also don't want farmers to have to hold unnecessary risk. And if the bank capital is overly burdensome, they're going to have to hold a lot more risk than they do today. The other thing that is clear would happen is if costs go up — the large commercials may be able to absorb a little bit of that, but that's going to flow down to farmers. And the margins are already very thin in the farming community. The costs are only going to increase if we choose overly burdensome capital requirements on our banks. I think the 2026 proposal is a nice balance between the two. There are some additional safeguards, but I also think it would be a balance that wouldn't be burdensome on the agriculture community or on farmers."

On How the Revised Proposal Restores Access to Credit:

Subcommittee Chairman on Capital Markets Chairman Ann Wagner (MO-02) said, “The original 2023 Basel III proposal would have had drastic consequences on securitization, which plays a vital role in helping banks manage their balance sheets and making credit, most importantly, credit more affordable and available to constituents who need it to finance a home purchase or perhaps a business.”

Subcommittee on Oversight and Investigations Chairman Dan Meuser (PA-09) said, “A well calibrated capital framework is one of the most important tools we have in ensuring the growth of our nation's economy and protecting small business’ ability to access capital. Thanks to the terrific work of Fed Vice Chair Michelle Bowman, the newly proposed framework seeks to achieve that goal protecting our economy while avoiding overly stringent requirements, that, in the end, restrict lending and hinder growth. The revised Basel III proposal reduces burdensome capital requirements on regional community banks in support of a pro-economic growth framework that avoids the negative effects of the previous proposals that truly would have harmed access to capital for every American.”

Witnesses Echoed the Work of the Committee:

Mr. Baer said, “Contemporaneous finalization of these three proposals would remove almost a decade of uncertainty about Basel implementation in the United States and lift a veil of secrecy from the Federal Reserve’s stress test. Investors will be able to know what a bank’s capital requirement is and project with confidence what it will be in the future — just like investors in any other type of company. For their part, banks will be able to engage in more thoughtful capital and business planning. As a result, banks’ cost of capital will decrease, their ability to serve their customers efficiently will increase and the economy will benefit in an indirect but significant way.”

Mr. Broeksmit said, “I want to step back from the technical language of risk weights and instead briefly tell you what these capital rules mean to a family buying or renting a home. First, let me say clearly the agencies have listened. This new proposal is meaningfully better than the current bank capital framework, and the proposed revisions in 2023 that would have caused serious disruption to both residential and commercial real estate markets. Let me focus on three areas of the proposal where the details will have real consequences for real people. When a bank originates a mortgage and sells it into the secondary market, it often retains the right to collect payments. The mortgage servicing asset, or MSA, that servicing right has value, and it's a key component of how banks price new loans. In 2013, under the first phase of Basel III, regulators raised the risk weight on MSAs from 100% to 250%, with no empirical justification. In practical terms, this took the capital requirement on the value of mortgage servicing from $0.08 on the dollar to $0.20 on the dollar. The result was predictable. Banks looked at that capital cost and walked away from mortgage servicing with their share of single-family servicing falling from 88% in 2012 to 39% today. That's not a market trend. That's a regulatory outcome. Here's why that matters. For borrowers, the value of a servicing right is a direct input into mortgage pricing. When bankers are active and consistent buyers of servicing, that competition drives the value of the MSA, and every increase in servicing value translates directly into lower costs for the borrower. At origination, a 25 basis point increase in servicing value is a 25 basis point reduction in closing costs. That's $1,000 in savings on a $400,000 loan. It's not abstract. It goes right back into the borrower's pocket. MBA strongly supports reducing the MSA risk rate back to 100%.”

Mr. Griffith said, “We believe the March 2026 capital proposals strike an appropriate balance by strengthening safeguards while preserving market liquidity and clearing capacity. By contrast, the 2023 Basel III endgame proposal we fear would undermine these objectives by increasing costs, reducing clearing capacity, and pushing risk away from transparent, centrally cleared markets. We believe the 2026 proposal better supports the long-term stability and efficiency of agricultural hedging markets.”

Mr. Luigi L. De Ghenghi, Partner, Davis Polk & Wardwell LLP said, “The 2023 proposed rules were issued by the banking agencies with an impact and economic analysis summary that was eight pages long and without the benefit of an extensive data collection effort to measure the potential impact of the proposed rules on affected banking organizations’ RWAs. In contrast, the three 2026 proposed rules include an impact and economic analysis summary that is 95 pages long and that takes into account the results of the data collection effort from 2023 as well as data reported by banking organizations on various regulatory reports through June 2025. The banking agencies’ impact and economic analysis summarizes not only the expected impact of the 2026 proposed rules, but also the cumulative impact of other final or proposed changes to bank capital requirements, such as the final rule modifying the Enhanced Supplementary Leverage Ratio (eSLR) and the proposed changes to various aspects of the Federal Reserve’s stress testing and stress capital buffer framework.”

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Lucas: Derivatives Markets are Key to Managing Treasury Market Risk

Wed, 29 Apr 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity hearing, led by Task Force Chairman Frank Lucas (OK-03), to examine the critical role derivatives play in managing risk in the Treasury market.

Read Task Force Chairman Lucas' opening remarks as prepared for delivery:

"Welcome to today’s Task Force hearing examining derivatives’ role in the Treasury market. Thank you to our witnesses for providing their invaluable expertise.

"The Treasury market is the deepest, most liquid, most important market in the world. Today we’re discussing an aspect of the Treasury market that continues to grow in popularity and raises important questions ahead of anticipated market structure changes and capital rulemaking.

"Part ofthe depth and liquidity of the Treasury market is driven by trading on swaps, options, and futures on the underlying cash Treasury.

"These derivatives markets are key to managing risk. They allow market participants to hedge their exposures, creating demand for Treasuries, increasing market liquidity, and supporting price discovery and health of the broader Treasury market.

"As a recent paper from the Chicago Fed has pointed out: “enhanced liquidity in the derivatives market strengthens the functioning of the cash market” and “the enhanced liquidity supports more stable, lower-cost public financing.”

"It’s important that Congress continues to support the resilience of the Treasury derivatives markets as these instruments are so closely linked to the bedrock of the global financial system.

"We must especially pay attention now as the industry undergoes a fundamental market structure shift with the looming deadlines for central clearing of Treasury cash and repo in December and next June, respectively.

"The SEC, under the leadership of Chairman Atkins, has been responsive to industry comments and proposals to make sure the transition to mandatory clearing causes no disruptions in the Treasury market. A recent example includes the approval of two additional CCPs, increasing customer choice and competition while reducing concentration risk.

"Demand for Treasury derivatives is rising and with it demand for cash and for clearing. It is absolutely critical that our capacity for clearing these transactions rises in kind.

"Last week the SEC and CFTC also granted exemptive relief to allow customer cross-margining of off-setting exposures of cash and futures positions for Treasuries.

"This is a welcome step to ease the transition to mandatory clearing, and as witness testimony has pointed out, will allow the redeployment of capital back into our Treasury markets.

"I’m hopeful that all this risk-reducing activity will be fully recognized in the capital rules proposed by the bank regulators as we discussed yesterday in the full committee hearing on the topic.

"We have substantial data and experience on the benefits of clearing from a risk management and margin efficiency standpoint due to its use in derivatives markets, but getting the transition right to the broader Treasury market will take Congress, the regulators, and the industry working in lock step together.

"I look forward to our discussion today. I yield back."

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Vice Chairman Huizenga: Republicans Advocate for Capital Rules That Work for Everyday Americans, Not Just Regulators and Big Banks

Tue, 28 Apr 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a hearing to examine newly released capital proposals from federal regulators, including Basel III, updates to the standardized approach, and changes to the GSIB surcharge. The hearing focuses on ensuring capital rules are appropriately tailored, support lending and economic growth, and keep U.S. financial institutions competitive globally.

Read Vice Chairman Huizenga's remarks as prepared for delivery:

"Good morning.

"Today's hearing will examine the recently released capital proposals from our prudential regulators concerning Basel III, the standardized approach, and the GSIB Surcharge.

"In March, the OCC, FDIC, and Federal Reserve released revised Basel III regulations aimed at updating U.S. bank capital requirements for the largest banks.

"These revisions respond to bipartisan and widespread concerns raised about the earlier 2023 proposal and attempt to refine how capital standards are applied across institutions.

"They also released a proposal that would make certain adjustments to the standardized approach capital rule, which applies generally to banks. Additionally, the Fed issued a proposal to adjust the capital surcharge applicable to global systemically significant banks, or G-SIBs.

"Right-sizing bank regulation is critical to ensuring that capital standards are appropriately tailored to risk and do not restrict lending by institutions that play a critical role in supporting our local economies. Capital requirements should promote investment, not compound on one another and impose capital levels well above what actual risk warrants.

"We must also pay special attention to America's competitive position on the world stage. The 2023 proposal contained requirements that diverged significantly from global standards, placing U.S. financial institutions at a disadvantage. This revised framework takes steps to realign U.S. requirements with international norms.

"American capital markets are the broadest and deepest in the world, and it is important that bank capital requirements promote their proper functioning. The prior administration’s overly punitive proposal would have had significant consequences for banks’ securities underwriting, derivative hedging, securitization, and equity investments in funds. The revised proposal does more to ensure that banks continue their crucial work as intermediaries and that risks flow to those most able to manage them.

"As we review these proposals, we must ensure they strike the right balance between preserving safety and soundness in our financial system while fostering the kind of economic growth that benefits every American.

"Committee Republicans have consistently advocated for a capital framework that works not just for regulators or large institutions, but for everyday Americans who depend on access to credit to buy homes, start businesses, and invest in their futures.

"For example, this revised proposal abandons the punitive mortgage risk weights from the 2023 proposal that drew bipartisan criticism from this committee, helping protect access to affordable home loans for American families.

"It is Congress’ responsibility to ensure these proposals are clear, appropriately targeted, and do not create unintended consequences that could ripple through our economy.

"With that, I look forward to hearing from our witnesses today, and I yield back."

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Chairman Hill Welcomes DOJ Decision, Calls for Swift Action on Fed Chairman Nominee Kevin Warsh

Fri, 24 Apr 2026 04:00:00 GMT

House Committee on Financial Services Chairman French Hill (AR-02) issued the following statement regarding the Department of Justice's announcement it was closing its investigation of Federal Reserve Chairman Jerome Powell:

“I welcome the Department of Justice’s decision to close its investigation. As I’ve said since January 12, I felt like the accusation that Chairman Powell had committed some sort of crime connected with the building construction was a distraction and it would delay President Trump in the selection of a new Chairman. With the DOJ probe concluded and the Inspector General review ongoing, I hope the Senate can get President Trump’s highly qualified nominee, Kevin Warsh, confirmed and in place as soon as possible to further advance President Trump’s economic agenda.

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Housing and Insurance Subcommittee Reviews Reinsurance and Credit Risk Transfers

Thu, 23 Apr 2026 04:00:00 GMT

Yesterday, the House Financial Services Subcommittee on Housing and Insurance, led by Subcommittee Chairman Mike Flood (NE-01), held a hearing on the role of reinsurance and credit risk transfers (CRT) in helping distribute risk across the market.

On Protecting Taxpayers Through Private Capital:

Full Committee Chairman French Hill (AR-02) said, “So much of this is offsetting loss for the taxpayers. And at the end of the day, when the losses come due, trying to figure out who's left to make those major payments. And risk transfer tools, as we've established today, and reinsurance and Credit Risk Transfer all help answer that question on who picks up those losses by bringing private capital in before losses fall on the backs of taxpayers.”

Subcommittee Chairman Flood questioned witnesses on how the U.S. views catastrophic risk, to which Mr. Anthony Vidovich, Executive Vice President and General Counsel, Everest Group, replied, “The reinsurance industry is quite vibrant. Capital is continuing to enter that market and rates for catastrophe reinsurance in a number of CAT prone areas are declining because we are seeing increased competition because of that inflow of capital. … We're also seeing new entrants come into that market to assume that risk. So the private market is responding and is quite vibrant.”

Rep. Scott Fitzgerald (WI-05) said, “Private mortgage insurance helps first-time and, I would say, working-class buyers access home ownership, and it safeguards taxpayers from credit risk… The industry has grown more resilient through consistent mortgage insurance, CRT transactions, which has been, I guess, ensuring support for new buyers and claim payments during all kinds of economic turmoil.”

Rep. Troy Downing (MT-02) questioned witnesses on how the NFIP uses the insurance linked securities markets to transfer risk, to which, Mr. Anthony Vidovich, Executive Vice President and General Counsel, Everest Group, replied, “In addition to the use of traditional treaty reinsurance, the NFIP has gone into the catastrophe bond space and used catastrophe bonds as a way to protect the NFIP from extreme tail risk… As I testified earlier, reinsurance has a number of different forms. Catastrophe bonds meet the investment needs of a group that see them attractive for that extreme tail risk.”

Witnesses Echoed the Work of the Committee:

Mr. Vidovich said, “Current U.S. bank regulatory capital rules do not clearly permit the use of insurance and reinsurance to provide capital relief, even though Basel III recognizes credit protection from prudentially regulated financial institutions, including prudentially regulated insurance companies, which include reinsurers. This puts U.S. banks at a competitive disadvantage relative to non-U.S. banks in jurisdictions that permit it. As a result, U.S. banks must hold more capital against risk and cannot access this cost-effective and proven form of private capital to better manage balance-sheet risk, increasing the cost of credit and reducing the availability of credit for households and businesses.”

Mr. Walker said, “Private capital is available to support government risks. The market infrastructure exists. The tools have been tested across hundreds of transactions over more than a decade. The programs discussed today … are real-life, effective examples of private markets working with government agencies and entities under government conservatorship to manage and distribute risk.”

Mr. Jerry Theodorou, Director of Finance, Insurance, and Trade Policy Program, R Street Institute said, “Reinsurers play an important role in managing insurance risk from natural and man-made catastrophes. They provide property disaster protection by absorbing risk that might otherwise erode significant amounts of insurers’ capital. Without reinsurance, insurance companies are fully exposed to financial losses in the wake of mega-catastrophe events.”

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Financial Services Advances 4 Bills

Wed, 22 Apr 2026 04:00:00 GMT

Yesterday, the House Committee on Financial Services, led by Chairman French Hill (AR-02), successfully reported 4 bills to the House of Representatives.

“The bills before us encompass a wide range of policy areas, each reflecting the Committee’s focus on promoting economic growth, strengthening market integrity, and ensuring our regulatory framework keeps pace with a rapidly evolving financial landscape,” said Chairman Hill.

H.R. 941, the Small Lenders Exempt from New Data and Excessive Reporting (LENDER) Act, offered by Chairman Hill, passed 26-22. This bill reduces unnecessary reporting requirements on small lenders to ease regulatory burdens, expand access to credit, and strengthen community lending for families and small businesses.

Watch Chairman Hill’s remarks here.
Watch Subcommittee on Oversight and Investigations Chairman Dan Meuser’s (PA-09) remarks here.
Watch Committee on Small Business Chairman Roger Williams’ (TX-25) remarks here.

H.R. 8286, the Protecting Americans’ Retirement Savings from Politics Act, offered by Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil (WI-01), passed 27-24. This bill protects Americans’ retirement savings from politicized investment mandates by ensuring fiduciaries prioritize financial returns for workers and retirees.

Watch Rep. Steil’s remarks here.
Watch Subcommittee on Capital Markets Chairman Ann Wanger’s (MO-02) remarks here.

H.R. 8290, the China Exchange Rate Accountability Act of 2026, sponsored by Rep. Pete Sessions (TX-25), passed 32-20. This bill increases transparency and accountability in China’s exchange rate practices to ensure more balanced trade.

Watch Rep. Sessions’ remarks here.
Watch Subcommittee on National Security, Illicit Finance, and International Financial Institutions Chairman Warren Davidson’s (OH-08) remarks here.

H.R. 425, the Repealing Big Brother Overreach Act, sponsored by Rep. Davidson, passed 26-25. This bill rolls back excessive federal data collection and reporting requirements to protect Americans’ financial privacy and reduce government overreach.

Watch Rep. Davidson’s remarks here.
Watch Rep. Andy Ogles’ (TN-05) remarks here.

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Flood: Reinsurance and Credit Risk Transfer Help Distribute Risk Across the Market

Wed, 22 Apr 2026 04:00:00 GMT

Today, the House Financial Services Committee is holding a Housing and Insurance Subcommittee hearing, led by Subcommittee Chairman Mike Flood (NE-01), focused on the importance of reinsurance and credit risk transfer (CRT).

Read Subcommittee Chairman Flood’s opening remarks as prepared for delivery:

"I’d like to thank our witnesses for being with us today, and I look forward to an interesting discussion focusing on reinsurance and credit risk transfer.

"While distinct in how they’re used, both reinsurance and credit risk transfer—or CRT—are used for a common purpose: to distribute risk that would otherwise be concentrated in one entity across more market participants.

"Reinsurance does this by serving as insurance for insurers. Let’s use an example to help demonstrate when an insurer might need reinsurance.

"Let’s say a small mutual insurer issues home insurance policies primarily in communities in Western Nebraska.

"In most instances, that business model probably works well. But what if a severe storm moves through Western Nebraska, pelting homes across the region with baseball-sized hail? That insurer could see a large portion of its insureds file claims at the same time—a disaster that could even send the company into bankruptcy.

"One way for an insurer to deal with this is to get reinsurance, or insurance for the insurer, that would cover exactly the type of risk that would put them in a difficult position to pay claims.

"By purchasing reinsurance, the insurer covers themselves from a worst-case scenario, much like a homeowner uses insurance to cover themselves in the event of extreme weather that causes massive damage to their home.

"Similarly, CRT is used by Fannie Mae and Freddie Mac to distribute take some mortgage credit risk off of the Enterprises’ books.

"Much like reinsurance, CRT—if used properly—will help redistribute some of the risk on the GSEs books to other financial actors, lessening the burden on the Enterprises themselves.

"For those of us that are interested in lessening the taxpayers’ potential liability from Fannie Mae and Freddie Mac, CRT is a tool that can help meet that goal.

"CRT is designed to put private capital ahead of the taxpayer in the case of mortgage defaults. When it operates properly, it both spreads the risk and lessens taxpayer exposure to downturns in the mortgage market.

"While this discussion will largely focus on transferring risk between insurers or the Enterprises, both reinsurance and CRT have downstream effects on the insurance market and mortgage market—including consumers.

"A market with concentrated risks is going to be more likely to have problems when unusual events arise.

"As a policyholder, you want your insurer to have diversified risk to ensure that when something happens to you, your insurer doesn’t have any problem paying your claim.

"As a prospective homebuyer, when you are shopping for a mortgage, you want the best terms and lowest interest rate possible—something that is easier to find when the Enterprises are healthy and the conforming mortgage market is running smoothly.

"The bottom line: reinsurance and CRT help distribute risk across the market. Both make our insurance market and mortgage market operate safely and soundly.

"I’d like to add the following documents to the record for this hearing:

A letter from the National Association of Realtors

"I look forward to hearing from our expert panelists on these important issues, and I yield back."

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Financial Services, Energy & Commerce Committees Partner to Strengthen American Data Privacy

Wed, 22 Apr 2026 04:00:00 GMT

Today, the House Financial Services Committee and the House Energy & Commerce Committee announced a joint effort to advance two landmark data privacy bills, the GUARD Financial Data Act and the SECURE Data Act, to provide Americans more control over their personal data, create a uniform national framework to promote competition, and improve consumer choice by increasing access to financial products and services for all Americans. The bills are aligned in substance and reflect the unique considerations of existing law, the financial sector, and each Committee.

Click HERE for a one-pager on the bills.

Click HERE for a section-by-section on the GUARD Financial Data Act.

Click HERE for the text of the GUARD Financial Data Act.

Click HERE for the text of the SECURE Data Act.

Rep. French Hill (AR-02), Chairman of the House Committee on Financial Services, Rep. Bill Huizenga (MI-04), Vice Chairman of the House Committee on Financial Services, Rep. Andy Barr (KY-06), Chairman, Subcommittee on Financial Institutions, and Rep. Bryan Steil (WI-01), Chairman, Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence said, "For decades, Americans have entrusted financial institutions to maintain the privacy and security of their financial information. Twenty-six years ago, when the Gramm-Leach-Bliley Act (GLBA) became law, it was written in a technology-neutral fashion that has adapted well to the changes in technology and types of consumer data that have developed since 1999. But, in that time, the volume and complexity of data have increased such that providing consumers greater control over their financial data has become imperative.

“That is why we have introduced the GUARD Financial Data Act to modernize the GLBA. Our bill minimizes data collection and disclosures; allows customers and former customers to request access to their financial data held by a financial institution; allows former customers of a financial institution to request deletion of their data; and requires a financial institution to receive a consumer’s affirmative opt-in consent before sensitive personal information can be disclosed.

“The Financial Services Committee is proud to introduce these commonsense protections in coordination with the Energy and Commerce Committee as part of a unified House Republican effort to ensure Americans' data privacy rights. This effort represents a significant step to strengthen consumer protections and ensure Americans have control over their financial data. We look forward to continuing to work together as these measures progress through the legislative process.”

Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Congress, and Congressman John Joyce, M.D. (PA-13), Leader of the Energy and Commerce Data Privacy Working Group added, “The Energy and Commerce Data Privacy Working Group was created to reset the discussion on comprehensive data privacy, taking wide ranging input from stakeholders and crafting a consensus bill that protects the privacy and security of Americans’ personal data. The SECURE Data Act is the result. This bill establishes clear, enforceable protections so that Americans remain in charge of their own data and companies are held accountable for its safe keeping. We look forward to working with our colleagues to build support for this bill and advance data privacy protections fit for our 21st century economy.”

Key Parts of the GUARD Financial Data Act:

Establishes Title V of the Gramm-Bliley Act (GLBA) as the uniform national standard for consumer data privacy and security protections in the financial services sector:

The bill contains robust data-level and entity-level preemption to enhance competition, decrease compliance costs, and expand consumers’ choice of financial products and services.

Strengthens key consumer protections:

Codifies the continuing right of consumers to opt-out of disclosures of their data and the right of consumers to revoke their consent to collection or disclosure of sensitive data within a framework of necessary existing GLBA Title V exceptions.
Ensures consumers receive a more fulsome picture of how their data is being used and how to exercise their data rights by expanding the information consumers receive.

Ensures a consumer’s sensitive personal data can only be collected or disclosed with the consumer’s consent:

Sensitive personal data includes race, ethnicity, religion, health info, biometric data, and precise geolocation data.

Requires financial institutions to minimize data use:

Financial institutions can only collect or disclose data that is adequate, relevant, and reasonably necessary for the purpose of the product or service.

Ensures customers of a financial institution have key rights, including a right to:

Request deletion of their data by a financial institution in the case of former customers, subject to necessary exceptions.
Request access to and obtain a copy of their data that is possessed by a financial institution, in the case of current and former customers.
The financial institution must provide current and former customers with this data in a format that allows them the ability to transfer their data to another financial institution.

Incentivizes adoption of more secure data access and disclosure methods:

Requires data aggregators and third parties to provide notice and opt-out before using a consumer’s login credentials to access their account at a financial institution.

Maintains enforcement by Federal functional regulators and state insurance regulators:

Maintains GLBA Title V’s data privacy enforcement authorities of the Consumer Financial Protection Bureau, Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Federal Trade Commission (FTC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), and state insurance regulators for the financial institutions within their respective jurisdictions.
Maintains GLBA Title V’s data security enforcement authorities of the CFTC, FDIC, Federal Reserve, FTC, NCUA, OCC, SEC, and state insurance regulators for the financial institutions within their respective jurisdictions.

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Hearing Entitled: From Order to Execution: Ensuring Efficient and Transparent Equity Markets”

Wed, 20 May 2026 18:00:00 GMT

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Hearing Entitled: Partnering for Innovation: How Bank-Fintech Collaborations Enhance Financial Infrastructure

Wed, 20 May 2026 14:00:00 GMT

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Hearing Entitled: Modernizing the BSA for Financial Crime in the 21st Century

Tue, 19 May 2026 14:00:00 GMT

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Markup of Various Measures

Wed, 13 May 2026 14:00:00 GMT

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Hearing Entitled: Examining Derivatives’ Role in the Treasury Market

Wed, 29 Apr 2026 14:00:00 GMT

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Witnesses

Mr. Kevin McPartland, Head of Research, Market Structure and Technology, Crisil Coalition Greenwich
Mr. Terrence A. Duffy, Chairman and Chief Executive Officer, CME Group
Mr. Jeff Cranston, Head of Corporate Strategy, Optiver
Professor Yesha Yadav, Milton R. Underwood Chair, Professor of Law and Associate Dean, Vanderbilt University Law School

Hearing Entitled: Prioritizing Main Street: Evaluating the Impact of Capital Proposals on Economic Growth and American Communities

Tue, 28 Apr 2026 14:00:00 GMT

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Witnesses

Mr. Greg Baer, President & Chief Executive Officer, Bank Policy Institute
Mr. Robert D. Broeksmit, President & Chief Executive Officer, Mortgage Bankers Association
Mr. Luigi L. De Ghenghi, Partner, Davis Polk & Wardwell LLP
Mr. Reginald Griffith, Global Head of Regulatory Compliance, Louis Dreyfus Company, on behalf of the Commodity Markets Council
Ms. Mayra Rodriguez Valladares, Managing Principal, MRV Associates

Hearing Entitled: Evaluating the Effectiveness of U.S. Sanctions Programs

Wed, 22 Apr 2026 18:00:00 GMT

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Witnesses

The Honorable Jonathan Burke, Assistant Secretary for Terrorist Financing, U.S. Department of the Treasury

Hearing Entitled: Diversifying Risk: The Benefits of Reinsurance and Credit Risk Transfers

Wed, 22 Apr 2026 14:00:00 GMT

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Witnesses

Mr. Anthony Vidovich, Executive Vice President and General Counsel, Everest Group
Mr. Ben Walker, Executive managing Director, Aon Reinsurance
Mr. Jerry Theodorou, Director of Finance, Insurance, and Trade Policy Program, R Street Institute
Dr. Susan M. Wachter, Albert Sussman Professor of Real Estate, Professor of Finance, The Wharton School of the University of Pennsylvania, and co-director of the Penn Institute for Urban Research

Markup of Various Measures

Tue, 21 Apr 2026 14:00:00 GMT

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Click here for e-voting pictures.

Legislation

H.R. 425, the Repealing Big Brother Overreach Act (as amended), was AGREED TO by a recorded vote of 26 YEAS and 25 NAYS. (FC Vote #2 69)

H.R. 941, the Small Lenders Exempt from New Data and Excessive Reporting (LENDER) Act (as amended), was AGREED TO by a recorded vote of 26 YEAS to 22 NAYS. (FC Vote #256)

H.R. 8286, the Protecting Americans’ Retirement Savings from Politics Act (as amended), was AGREED TO by a recorded vote of 27 YEAS to 24 NAYS. (FC Vote #262)

H.R. 8290, the Exchange Rate Accountability Act of 2026 (as amended), was AGREED TO by a recorded vote of 32 YEAS and 20 NAYS. (FC Vote #264)

Amendments

ANS to H.R. 425, designated as DavidsonOH_121, offered by Rep. Davidson of Ohio, was AGREED TO by voice vote.

An amendment, designated HR425_08 (Waters 4), was NOT AGREED TO by a recorded vote of 24 YEAS and 27 NAYS. (FC Vote #265)
An amendment, designated HR425_10 (Beatty 1), was NOT AGREED TO by a recorded vote of 24 YEAS and 27 NAYS. (FC Vote #266)
An amendment, designated HR425_09 (Gonzalez 1), was NOT AGREED TO by a recorded vote of 24 YEAS and 27 NAYS. (FC Vote #267)
An amendment, designated HR425_04 (Waters 5), was NOT AGREED TO by a recorded vote of 25 YEAS and 26 NAYS. (FC Vote #268)

ANS to H.R. 941, designated as HILLAR_076, offered by Rep. Hill of Arkansas, was AGREED TO by voice vote.

An amendment, designated Waters 163 (Waters 1), was NOT AGREED TO by a recorded vote of 20 YEAS and 25 NAYS. (FC Vote #255)

ANS to H.R. 8286, designated as STEILWI_047, offered by Rep. Steil of Wisconsin, was AGREED TO by voice vote.

An amendment, designated Meeks 125 (Meeks 1), was NOT AGREED TO by a recorded vote of 22 YEAS and 26 NAYS. (FC Vote #257)
An amendment, designated Vargas 032 (Vargas 1), was NOT AGREED TO by a recorded vote of 24 YEAS and 26 NAYS. (FC Vote #258)
An amendment, designated Waters 165 (Waters 2), was NOT AGREED TO by a recorded vote of 24 YEAS and 27 NAYS. (FC Vote #259)
An amendment, designated Casten 105 (Casten 1), was NOT AGREED TO by a recorded vote of 24 YEAS and 27 NAYS. (FC Vote #260)
An amendment, designated Tlaib 127 (Tlaib 1), was NOT AGREED TO by a recorded vote of 23 YEAS and 27 NAYS. (FC Vote #261)

ANS to H.R 8290, designated as ERA_ANS, offered by Rep. Sessions of Texas, was AGREED TO by voice vote.

An amendment, designated Amdt 001 (Waters 3), as NOT AGREED TO by a recorded vote of 24 YEAS and 28 NAYS. (FC Vote #263)

Hearing Entitled: Promoting Access to Credit for Everyday Americans

Thu, 16 Apr 2026 14:00:00 GMT

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Witnesses

Mr. Dan Smith, President and Chief Executive Officer, Consumer Data Industry Association
Ms. Rebecca Kuehn, Partner, Hudson and Cook
Mrs. Celia Winslow, President and Chief Executive Officer, American Financial Services Association
Mrs. Veneshia Ferdinand, Director of Compliance Policy, Simmons Bank, on behalf of the American Bankers Association
Ms. Chi Chi Wu, Director of Consumer Reporting and Data Advocacy, National Consumer Law Center

Legislation:

H.R. 5775, the FCRA Liability Harmonization Act
H.R. 5402, the Credit Access and Inclusion Act
H.R. 7588, the Eliminating Fraud in the CFPB’s Complaint Database Act
H.R. 8141,the Fair Credit Reporting Reseller Accuracy Act