Committee on Financial Services

Jeb Hensarling

9 Seinfeld GIFs Help Explain the "Fiduciary" Rule

2016/04/07


1. The Administration just published a rule to “protect consumers” which sounds great at first…

2. But then we realized that it’s 1,000 pages long. 1-0-0-0 pages…


3. And it doesn’t actually protect consumers at all.


4. The truth is this rule limits consumers’ choices and will make financial advice more expensive and less available – which is just wrong.


5. American consumers are already hurting and Washington bureaucrats shouldn't make it harder and more expensive for them to plan for retirement, send a child to college or open up their own small business. 

 

6. And when the Administration’s own experts warned this rule could hurt more than help, the political appointees basically said, facts, schmacts.

 

7. There is good news though – we have a BIPARTISAN solution to stop this harmful rule. You can read more about that here

 

8. We WILL fight to protect the retirement security and investment choices for all Americans.


9. And we WILL NOT let the Obama Administration deny millions of hardworking Americans access to reliable, affordable investment advice.



BONUS GIF: Thank you for reading.


 

Tweet: We WILL fight to protect the retirement security and investment choices for all Americans.  #4MainStreet We WILL fight to protect the retirement security and investment choices for all Americans. #4MainStreet

Tweet: This rule will limit consumers’ choices and make financial advice more expensive for those who need it most. #4MainStreet This rule will limit consumers’ choices and make financial advice more expensive for those who need it most. #4MainStreet

Tweet: Washington shouldn’t make it harder for Americans to plan for retirement, send a child to college or open a small business. #4MainStreet Washington shouldn’t make it harder for Americans to plan for retirement, send a child to college or open a small business. #4MainStreet
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6 Photos from the Month of March

2016/04/01


The Debt Clock
// Treasury Secretary Jack Lew testifies as the national debt continues to climb.


The Hoosier
// Rep. Luke Messer (R-IN) prepares to question a witness during a March hearing. 



The Gipper
// Chairman Jeb Hensarling waits near a portrait of a young Ronald Reagan as he prepares to address the Conservative Political Action Conference. 



“Maximize Pressure on Congress”
  // Secretary Jack Lew answers questions about a blistering new report that revealed the Treasury Department misled the public about the debt limit in order to “maximize pressure on Congress."



Article I
// Chairman Jeb Hensarling participates in a panel discussion with Senator Mike Lee (R-UT) about their project to restore Congress’s Article I powers.



The Snowmobiler // Monetary Policy and Trade Subcommittee Chairman Bill Huizenga (R-MI) listens to witness testimony during a March hearing.
 




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We are BIG fans of Dodd-Frank.

2016/04/01


April Fools.

We are not fans of Dodd-Frank and we’re doing something about it.

Under Dodd-Frank (a.k.a. Washington’s Financial Control Law), Wall Street’s “too big to fail” banks have gotten even bigger, while community banks that had nothing to do with the financial crisis are being crushed under bureaucrats’ one-size-fits-all regulations. The harm to consumers has been very real.

We can do better.

In the coming months, Republicans on the Financial Services Committee will advance a bold alternative that will offer greater opportunity to all and demand more accountability from Washington and Wall Street.

Our better approach will toughen penalties for those who engage in wrongdoing and defraud consumers. It will end taxpayer-funded bailouts and empower consumers with more choices, not more red tape.

It will help level the playing field and grow the economy from Main Street up.

Instead of out-of-control bureaucrats and job-crushing regulations, we’ll offer working families more freedom and more opportunity, so they can achieve financial independence, raise their standard of living, and earn success.

And that is no joke.

Happy April. Stay tuned for more updates on our work.

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7 Photos from February

2016/02/29


WASHINGTON -- February may be the shortest month of the year, but the Financial Services Committee made every moment count – hosting 8 hearings, 1 markup, and passing bipartisan legislation to modernize federal housing programs, stop executive overreach and provide regulatory relief for Americans on Main Street.

7 photos from the Month of February:

The Debt // Federal Reserve Chair Janet Yellen makes her first public comments since the Fed’s decision to raise interest rates and since the national debt eclipsed $19 trillion.


The Markup
// Chairman Jeb Hensarling (R-TX) leads a markup of the Committee’s Budget Views and Estimates for Fiscal Year 2017. 


The Consumer
// Robert Sherill, a small business owner and former drug dealer, shares how his story of redemption wouldn’t have been possible without the help of a small dollar loan. 


Agreement
// Housing and Insurance Subcommittee Chairman Blaine Luetkemeyer (R-MO) and Ranking Member Emanuel Clever (D-MO) share a moment of levity during a recent hearing. 


Ash Wednesday
// Rep. Mick Mulvaney (R-SC) questions Federal Reserve Chair Janet Yellen on Ash Wednesday. 


Holding Them Accountable
// Rep. Andy Barr (R-KY) poses tough questions to a CFPB witness about the Agency’s regulatory overreach. 


Working
// Rep. French Hill (R-AK) listens as witnesses describe how Washington overregulation is “choking the U.S. economy and paralyzing American businesses.”  

 

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Robert: A Story of Redemption and Financial Freedom

2016/02/16



Robert

READ ON ADOBE SLATE


Robert Sherill was a drug dealer. He was young and he made some serious mistakes. In his own words, “When I needed money, I sold drugs.” Eventually his crimes caught up with him and after several years in prison, he emerged resolved to build a better life for himself.

The only problem was that no one would take a risk on Robert. He couldn't get a job. He couldn't get a loan. He couldn't even get a bank account. The deck was stacked against him. It was against these odds that Robert decided that if he was going to turn his life around, he needed to start his own business.

Enter a local small dollar lender who understood Robert’s situation and designed a financial product to fit his needs.

“The payday loan I got...was a lifeline,” said Robert. “It enabled me to start a business.”

Robert understood the loan needed to be paid back. He understood how much it would cost. And he made a decision that was right for him.

Today, Robert’s business employs 20 people and is still growing. He is a member of his local chamber of commerce and of the Better Business Bureau. He is a productive member of his community, but it all may have been for naught if he couldn’t access a small dollar loan.

That’s why the CFPB’s attempt to shutdown small dollar lenders through regulatory fiat is so disturbing. It threatens to cut off the roughly 51 million American consumers who are unbanked or underbanked from accessing what may be the only type of credit available to them.

What the CFPB is attempting is nothing less than a Washington power grab. It is decreasing consumer choice, increasing the cost of credit, and reducing credit availability to the most vulnerable Americans.

Republicans know that the greatest consumer protection is competition and choice.

If we promote more choices, then we can create more opportunities for low and moderate income Americans like Robert to rise up and build better lives for themselves. And if we don't -- if Washington is allowed to limit Americans' financial freedoms and choke off access to small dollar lenders -- then stories like Robert's will become a lot less likely.

The consequences of this regulatory overreach are very real, as demonstrated by Robert’s response to a lawmaker who asked where he may be today if he hadn’t had access to the credit to start his small business:

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Media Buzz: Obama Misled Congress, Public During Debt Limit Crises

2016/02/11


 

House Committee: Treasury Played Politics in Debt Ceiling Debate

"The U.S. Treasury for political purposes tried to suppress the existence of backup plans that would allow the government to continue making some payments in the event of a partial government shutdown, according to a newly published report from the House Financial Services Committee."

 

Secret Fed Docs Show Obama Misled Congress, Public During Debt Limit Crises

"Federal Reserve Bank of New York officials secretly conducted real-time exercises during the 2011 and 2013 debt-limit crisis that demonstrated the federal government could function during a temporary shutdown by prioritizing spending, even as Treasury Secretary Jack Lew publicly claimed many times that such efforts were 'unworkable,' according to a new report by the House Financial Services Committee obtained by The Daily Caller News Foundation."

 


Treasury sought to withhold plans on debt: Report

"[E]mails from inside the New York Fed paint a picture of the Treasury as withholding information in order to gain leverage in the ongoing negotiations…Not everyone inside the New York Fed was happy with the Treasury's 'close hold' approach to the planning information. 'Agree the close hold here is crazy, counter-productive, and adds risk to an already risky situation,' wrote a New York Fed employee on Sept. 24, 2013."


Obama misled Congress on debt limit: House report

"The stunning revelation could fundamentally change the battleground between Capitol Hill and the White House heading into the next debt showdown early next year, because it means a president could no longer use the threat of a full government shutdown to win a debt hike."


GOP investigation: Treasury misled Congress, public about the debt limit

"The Obama administration considered prioritizing debt payments if the nation hit its borrowing cap, despite public assurances from the Treasury Department that such a plan would be unworkable… One internal email from the Federal Reserve Bank of New York showed that 'Treasury wants to maximize pressure on Congress by limiting communications about contingency planning.'"

 


Inside the Fed's `D-Day' War Games for Breach of U.S. Debt Limit

"Republicans on the panel said the documents show that the Obama administration misled the public about contingency plans during recent debt-ceiling showdowns and obstructed a subsequent congressional probe into the matter."

Obama Lied, and the Debt Ceiling Died

"What do you call it when an administration blatantly lies to the public to get its way in a debt ceiling fight, then covers it up for two years? For the Obama White House, it’s called 'par for the course.'"


The Obama Administration Misled Americans During the 2013 Debt-Ceiling Debate

"At the time, the White House and Treasury’s message was that there was no way to prioritize or sell anything. Well, as it turns out, documents subpoenaed by the House Financial Services Committee reveal that during the 2013 debt ceiling debate, 'the Obama Administration is not only capable of prioritizing payments in case the nation’s borrowing authority is not raised, it has run ‘tabletop exercises’ to prepare for such a contingency – contradicting earlier public statements from Treasury officials.'"



Probe: Obama Admin, Treasury Dept. Misled Nation on Public Debt Limit Plan


"One communication from the Federal Reserve was especially damning, saying, 'Treasury wants to maximize pressure on Congress by limiting communications about contingency planning.'

 

Subpoenaed Documents Reveal Obama Admin Deliberately Kept Congress in Dark Over Debt Ceiling Plans

"The Obama administration deliberately withheld information and kept Congress in the dark on how it was going to prioritize payments if the debt ceiling was not raised…”

 

House Report Says Treasury Secretary Misled Congress Over Debt Ceiling Risks

"Another internal email from the Federal Reserve Bank of New York complained, 'Treasury wants to maximize pressure on Congress by limiting communications about contingency planning,' according to the report."

 

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7 Things President Obama CAN’T Say in His #LastSOTU

2016/01/12


1.      A greater percentage of Americans are working than when I took office. 

2.      Community banks and credit unions are thriving 

3.      Too Big To Fail is a thing of the past.

4.      Our regulatory system has been streamlined

5.      Median household income has risen. 

6.      Taxpayers will never have to bailout Wall Street again. 

7.      New business startups have increased.

 

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Still More Evidence Dodd-Frank Harms Hardworking Americans

2016/01/05

 
It’s been a rough start to the year for the Dodd-Frank Act, as yet another nonpartisan study finds evidence that the massive law harms Americans. 

Not surprisingly, the new report from the Government Accountability Office (GAO) indicates an “increased compliance burden” among community banks and credit unions, which has “begun to adversely affect some lending activities, such as mortgage lending to customers not typically served by larger financial institutions…”

Meaning that, once again, we see that this law supposedly intended to rein in Wall Street is hurting Americans on Main Street. 

And it’s not going to get better.  As the GAO reports, “the full impact of the law remains uncertain” because the “array of new regulations” spewing forth from Dodd-Frank have yet to be finalized and fully implemented. 

Small hometown banks and credit unions tell the GAO the “trickledown effects” from this future “one-size-fits-all regulation” will fall on them.

The GAO report comes on the heels of a similar study by the Dallas Federal Reserve, which concluded that in the onslaught of Dodd-Frank regulations “more banks may become too small to succeed.”  

The Financial Services Committee is working to change this.  In 2015, 28 of our Committee bills were signed into law, including 6 dealing with Dodd-Frank.  In 2016, we’ll be working to present visionary proposals laying out a better vision for financial reform – bold ideas that promote more opportunities for low and moderate-income Americans, protect taxpayers from future Wall Street bailouts, and empower families and individuals to achieve financial independence. 

You can join our efforts and track our progress by signing up for regular updates here.








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Too Small to Succeed?

2016/01/04

Read on Medium

In a new report, the Dallas Federal Reserve acknowledged what we all know to be true: community banks are being crushed by the Dodd-Frank Act.

The report specifically warned of the consequences of the regulatory burden on small banks saying:


“…more than five years after [Dodd-Frank]… smaller community banks are finding it increasingly tough to survive...”

“Smaller community banks appear to have a valid concern that their compliance burden is rising and the playing field is becoming more uneven.”

The report went on to say:

“Regulatory oversight should match the level of risk an institution poses to the financial system and economy at large. Otherwise, more banks may become too small to succeed.”  

Translation? One-size-fits-all regulations do not work. And what’s worse is that it’s hurting community banks and credit unions and the hardworking Americans on Main Street who rely on them.

The report also cited the dwindling number of community banks—detailing the fact that since 2008, no new community banks have entered the marketplace. Supporters of Dodd-Frank said they were taking on the big banks.  Instead, with Dodd-Frank the big banks are getting bigger and the small banks are becoming fewer

The Financial Services Committee is working to change this.  In 2015, 28 of our Committee bills were signed into law, including 6 dealing with Dodd-Frank.  In 2016, we’ll be working to present visionary proposals laying out a better vision for financial reform – bold ideas that promote more opportunities for low and moderate-income Americans, protect taxpayers from future Wall Street bailouts, and empower families and individuals to achieve financial independence. 

You can join our efforts and track our progress by signing up for regular updates here









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WEEK IN REVIEW

2015/12/18

Subcommittee Questions CFPB's Consumer Data Collection Practice

On Wednesday the Financial Services Oversight and Investigations Subcommittee held a hearing to find answers regarding the Consumer Financial Protection Bureau's (CFPB) collection of consumer data.

Subcommittee Chairman Sean Duffy (R-WI) warned, "We don’t know – and the American people don’t know – how much personally identifiable information the CFPB retains, how that data is protected and what the Bureau plans to do with all that data."

The American Banker reported on Rep. Michael Fitzpatrick's (R-PA) concerns regarding ongoing data breaches and the vulnerability of consumer data at the hands of the CFPB. "Increasingly our cyber infrastructure and private records are becoming the target of both state and non-state actors alike."

"For these reasons it is alarming that any organization… would collect any consumer data and store it in a single location like the Consumer Financial Protection Bureau does," continued Rep. Fitzpatrick.

The Hill quoted Rep. Mia Love's (R-UT) concern over lawmakers' casual treatment of data collection in its coverage of the hearing"It is absolutely shocking to me the level of regulatory power these agencies have over the American people," she said.


Chairman Hensarling Continues Call for Transparency at the Fed

Chairman Jeb Hensarling (R-TX) responded to the Federal Reserve's interest rate hike with a continued call for more transparency at the Federal Reserve.

"The real question isn’t whether the Fed should be raising interest rates or lowering interest rates; it’s whether the Fed is giving our economy sustainable interest rates. Getting back to sustainable, market-based interest rates is better for consumers, investors and our economy overall. Unsustainably low interest rates clearly didn’t solve the problem or else Americans today wouldn’t be stuck in the slowest, worst-performing economic recovery of our lifetimes," remarked Chairman Hensarling.

The House of Representatives passed the Fed Oversight Reform and Modernization Act (FORM Act), sponsored by Rep. Bill Huizenga (R-MI) on November 19. The FORM Act would require the Federal Reserve to choose a monetary policy and communicate it to the American people. The FORM Act does not infringe on the Federal Reserve's independence to choose its monetary policy, but simply sheds light on its decision-making.

"The FORM Act will help expand economic opportunity because consumers, job creators and investors will all have more confidence in making financial plans. The more Americans can understand how the Fed will act, the better they can plan for the future," added Chairman Hensarling.

For more infomation on H.R. 3189, the FORM Act, click here.

MEMBER SPOTLIGHT

Rep. Scott Tipton | Tipton questions agency’s handling of personal data

Rep. Scott Tipton, R-Cortez, a member of the committee, questioned the witnesses about the claim that the CFPB did not collect any personal identifying information that could be compromised by pointing out that the agency collects identifying markers from consumers such as gender, age and ethnicity.

Weekend Must Reads


Boston Globe | New regulations: headache for bankers, boon for bank lawyers

Talk to a community banker about the Dodd-Frank law and all the rules out of Washington as a result, and you’re bound to hear about the headaches. But the new rules have been a boon for these banks’ lawyers, the ones who are behind the scenes, assembling community bank mergers.

Wall Street Journal | The Fed’s Uncertain Leap Forward

Some uncertainty about future monetary policy is inevitable. The Fed has greatly added to that uncertainty by its decision to employ forward guidance rather than to follow a monetary rule. Unlike a rule, forward guidance reflects the thinking of policy makers today but does not bind them to action tomorrow. We have seen that play out through 2015. The chief effect of Wednesday’s action and accompanying statement is to once again increase uncertainty in financial markets.

Morning Consult | The U.S. Department of Labor’s Misguided ‘Fiduciary’ Rule

Both Democratic and Republican legislators have expressed concerns about proposed regulations from the Obama administration that will change the way Americans receive financial advice. The effect of these rules, if enacted as written, will be negative for savers in Northern Virginia as well as in the rest of the nation. They will disrupt an individual’s ability to access advice during the process of investment and retirement planning.

 
  On the Horizon 

Stay tuned!

  In the News

American Banker | Republicans Hammer CFPB Over Data Collection Efforts

Washington Examiner | Gingrich goes after consumer data collection

The Hill | Gingrich slams consumer protection panel's data collection

Morning Consult | Newt Gingrich Brings Fireworks and Intrigue to CFPB Hearing

Wall Street Journal | Republicans Push Proposal to Let Banks Get Back Money From Fed

Politico Pro | Republicans gather support for Fed dividend change in omnibus

DSNews | Do the CFPB’s Massive Data Collection Efforts Pose a Threat to Americans?

New York Times | Fed Raises Key Interest Rate for First Time in Almost a Decade

HousingWire | Moody’s: TRID Violations Found in 90% of Recently Reviewed Mortgages

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Contact Information

2129 Rayburn HOB
Washington, DC 20515
Phone 202-225-7502
Fax 202-226-0471
financialservices.house.gov


Membership

Andy Barr

KENTUCKY's 6th DISTRICT

Robert Dold

ILLINOIS' 10th DISTRICT

Sean Duffy

WISCONSIN's 7th DISTRICT

Stephen Fincher

TENNESSEE's 8th DISTRICT

Mike Fitzpatrick

PENNSYLVANIA's 8th DISTRICT

Scott Garrett

NEW JERSEY's 5th DISTRICT

Frank Guinta

NEW HAMPSHIRE's 1st DISTRICT

Jeb Hensarling

TEXAS' 5th DISTRICT

French Hill

ARKANSAS' 2nd DISTRICT

Bill Huizenga

MICHIGAN's 2nd DISTRICT

Randy Hultgren

ILLINOIS' 14th DISTRICT

Robert Hurt

VIRGINIA's 5th DISTRICT

Peter King

NEW YORK's 2nd DISTRICT

Mia Love

UTAH's 4th DISTRICT

Frank Lucas

OKLAHOMA's 3rd DISTRICT

Blaine Luetkemeyer

MISSOURI's 3rd DISTRICT

Patrick McHenry

NORTH CAROLINA's 10th DISTRICT

Luke Messer

INDIANA's 6th DISTRICT

Mick Mulvaney

SOUTH CAROLINA's 5th DISTRICT

Randy Neugebauer

TEXAS' 19th DISTRICT

Steve Pearce

NEW MEXICO's 2nd DISTRICT

Robert Pittenger

NORTH CAROLINA's 9th DISTRICT

Bruce Poliquin

MAINE's 2nd DISTRICT

Bill Posey

FLORIDA's 8th DISTRICT

Dennis Ross

FLORIDA's 15th DISTRICT

Keith Rothfus

PENNSYLVANIA's 12th DISTRICT

Ed Royce

CALIFORNIA's 39th DISTRICT

David Schweikert

ARIZONA's 6th DISTRICT

Steve Stivers

OHIO's 15th DISTRICT

Marlin Stutzman

INDIANA's 3rd DISTRICT

Scott Tipton

COLORADO's 3rd DISTRICT

Ann Wagner

MISSOURI's 2nd DISTRICT

Lynn Westmoreland

GEORGIA's 3rd DISTRICT

Roger Williams

TEXAS' 25th DISTRICT

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