|CLICK HERE TO WATCH|
Under the Obama economic strategy of which Dodd-Frank is a central pillar, our anemic recovery has created 12.1 million fewer jobs than the average recovery since World War II. For more than a year now, the share of able-bodied Americans in the labor force has hovered at the lowest level in nearly 40 years. Small business startups are at the lowest level in a generation. Had this recovery simply been as strong as average previous ones, middle income families would have nearly $12,000 more in annual income, and 1.6 million more of our fellow Americans would have escaped poverty. This is simply unacceptable.
But more than numbers, my constituents’ angst tells me all I need to know. One wrote me not long ago: “There are part time jobs around my area…but always jobs with no benefits and less than 40 hours…My son is a disabled Iraqi Freedom combat veteran who has lost hope of a decent full time job.”
I suspect most Members of Congress unfortunately still receive letters like these. The painful truth is that Dodd-Frank and the hyper-regulated Obama economy are failing low- and moderate income Americans who simply want their fair shot at economic opportunity and financial security.
As we know, a recent Federal Reserve report states that within a few years roughly one-third of black and Hispanic borrowers may find themselves disqualified from obtaining a mortgage to buy a home because of Dodd-Frank’s “Qualified Mortgage” rule based solely on its rigid debt-to-income requirements.
Because of Dodd-Frank, free checking at banks has been cut in half. Furthermore, according to the FDIC, more than 9 million households don’t have a checking or savings account, principally because account fees are too high or unpredictable, another consequence of Dodd-Frank.
Dodd-Frank’s 2,300 pages launched a salvo of consequences that have crippled growth. It was advertised to target Wall Street but has instead clearly hit Main Street. It has had pernicious effects on small businesses and community financial institutions which are the lifeblood of the Main Street economy. Community banks and credit unions supply the bulk of small business and agricultural loans, but the combined weight of Dodd-Frank’s 400 regulations is dragging them down. We are losing on average one community financial institution a day.
But Dodd-Frank goes far beyond banks and credit unions. Its corporate governance provisions hit every public company in America. Grocery markets, cable TV servers, and bowling alley chains did not cause the financial meltdown but still must comply with regulations imposing wage controls, salary ratios, and private compensation disclosures made for big Wall Street firms. Every dollar these businesses are forced to spend on hiring lawyers and accountants to explain this gibberish is taken out of working peoples’ wages and capital expansion. No wonder the economy limps along at two percent GDP growth, far below its historic norm. No wonder low- and moderate-income Americans lose sleep at night worrying about their stagnant wages, smaller bank accounts, and children’s future.
Hardworking Americans deserve better than Dodd-Frank.
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July 28, 2015 10:00 a.m.
Full Committee Hearing
"The Dodd-Frank Act Five Years Later: Are We More Prosperous?"
July 28, 2015 2:00 p.m.
Full Committee Markup
"Markup of H.R. 766, H.R. 1210, H.R. 1317, H.R. 1553, H.R. 1737, H.R. 1839, H.R. 1941, H.R. 2091, H.R. 2243, H.R. 2643, H.R. 2912, H.R. 3032, H.R. 3189, and H.R. 3192"
Chicago Tribune | Five Years Later, Dodd-Frank Still Falls ShortMiami Herald | Fix the Dodd-Frank Law
Wall Street Journal | House Republican’s Proposal Takes Aim at Fed Powers
American Banker | House Panel Debates Bills to Rein In Fed's Authority
Bucks County Courier Times | Fitzpatrick Referees Hearing on Iran Nuclear Deal
Northwest Arkansas Democrat Gazette | Hill wants details on money flow to Iran
Credit Union Times | Credit Unions Don’t Represent Their Members: Matz
Wall Street Journal | Raising Ex-Im From the Dead
Politico | Democrats’ New Cause: Dodd-Frank
Washington Examiner | Dodd-Frank at 5: Helping Big Banks Get BiggerLA Times | Key Regulatory Job Created at Federal Reserve Still Vacant After Five Years
|CLICK HERE TO READ THE FULL EDITORIAL|
Republican Members of the Financial Services Committee have heard from people in their districts about how the law has harmed those who did not bring about the financial crisis, yet have been wrongfully penalized. The Committee continues to work on and pass bipartisan legislation to fix, amend and repeal portions of the law that are hurting Main Street and leading to stagnant economic and job growth.
Rep. Ed Royce (R-CA): Dodd-Frank Ignored Root Cause of Financial Crisis
|“Aside from enshrining too-big-to-fail, the Dodd-Frank Act ignored the root of the financial crisis by failing to address the duopoly of Fannie Mae and Freddie Mac. Five years later, the government dominates an unstable secondary mortgage market with taxpayers at risk of being tapped for a bailout should we see another downturn. The legacy of Dodd-Frank should be judged not just by what was included in it, but also what was left out of it. Policymakers owe it to the American people to wind down the GSEs before recent history repeats itself."|
Reps. Randy Neugebauer (R-TX) and Roger Williams (R-TX): Reform the CFPB to Better Protect Consumers
|"Our home state of Texas alone has 115 fewer community banks since the implementation of Dodd-Frank. Considering that 51% of all business loans under $1 millionnationwide are issued by local banks and credit unions, according to the Independent Community Bankers of America, the effects of this sweeping overhaul have trickled down to local job creators who had nothing to do with the financial crisis."|
Rep. Bruce Poliquin (R-ME): The Dodd-Frank Act Is Hurting Maine Businesses
|"Our community banks and credit unions are the backbone of our economy. They want to be able to lend money to Mainers who are interested in purchasing a new truck or putting a new engine on a lobster boat but they are unable to because of Dodd-Frank’s net of regulations."|
Rep. Dennis Ross (R-FL) : Dodd-Frank: Another Empty Promise
|"There are now fewer local banks and credit unions serving the needs of small-businesses and families in our communities than before Dodd-Frank was signed into law. These community banks and credit unions did not cause the financial crisis, but they are suffering under the weight of Dodd-Frank’s compliance costs, which are eventually paid by consumers."|
Rep. Tom Emmer (R-MN): Five years of Dodd-Frank, Five years of Failure
|"I wish I could say this is an isolated occurrence, but a recent study shows that Dodd-Frank has added 61 million hours of paperwork and more than $24 billion in final rule costs for the financial industry in this country. Nationwide, we have lost approximately 1,500 community banks already. The five years since Dodd-Frank was signed into law have been marked with five years of failure."|
|“Hardworking people throughout Arkansas and the rest of the country were sold a bill of goods on Dodd-Frank, and instead of addressing the true cause of the crisis—misguided housing policy— the law has only increased burdensome regulation and restricted Main Street’s access to much-needed credit and capital."|
|"Likewise, in the aftermath of Dodd-Frank, the American consumer is now faced with fewer choices, higher costs and more paperwork when seeking to get a loan or purchase other financial products. The effects on the American consumer are felt as a consequence of the fact that this massive new regulatory structure has resulted in significant consolidation in the marketplace — leaving only the larger institutions and leaving fewer institutions in the marketplace to compete for the business of the American consumer."|
|"These overwhelming compliance costs pose a challenge to any bank, but they are especially punishing to the community banks and credit unions that serve my constituents in rural Western North Carolina. Many of these banks have not survived this regulatory onslaught. Since June 2012, nearly 20 percent of N.C. banks have been forced to close or merge with other institutions because of Dodd-Frank."|
|“Five years ago today, the Dodd-Frank Act was signed into law amidst promises that the legislation would protect American consumers, make our economy more competitive, and end ‘too big to fail.’ Instead, Dodd-Frank has stifled economic growth, made it more difficult for Main Street businesses to obtain credit, and increased the likelihood that taxpayers will be on the hook for additional Wall Street bailouts. Most importantly, this law has and has made it harder for Americans to find a job, buy a home, and save money for their family’s future."|
|"Although it was created with the intention of focusing on federal banking, community banks have been hit the hardest. On average, the country is losing at least one community bank or credit union a day. In order to repair the damage from the 2008 crisis, Georgia’s community banks need less government interference and opportunities to grow– however, Dodd-Frank has done nothing but crush those opportunities."|
|CLICK HERE TO WATCH|
Iran is identified by the United States as a state sponsor of terror. Through its terrorist proxies such as Hezbollah, Hamas, and the Houthis, Iran continues to kill innocents around the around. The nuclear agreement will grant Iran over $100 billion in funds, which it will undoubtedly use to fund these terror groups – a development even acknowledged by the Administration.
“Most concerning to myself and many members of the bipartisan task force is the easing of Congressional sanctions – and with it the danger of a new influx of cash finding its way to terrorist organizations threatening strikes to the United States. It appears this agreement fails to address the realities surrounding Iran’s sponsorship of terror, while further empowering its mullahs by infusing billions of dollars into its economy through lifting the sanctions that successfully brought Iran to the negotiating table in the first place,” said Task Force Chairman Michael Fitzpatrick (R-PA).
Topline Witness Quotes
Unlike many other federal agencies, NCUA operates independent of the congressional appropriations process as their operating budget is fulfilled predominately by assessments of the federal credit unions they oversee. In each year since 2008, the NCUA budget has increased but, at the same time, the number of credit unions has dropped by nearly a quarter.
“Today’s hearing will mark the first time since 2011 that the NCUA Chair has testified before Congress. As with any federal agency, it is imperative that we conduct vigorous oversight of budgeting and operations. This ensures that the money paid into the system by credit unions is being spent appropriately, and that the taxpayers remain protected by a strong Share Insurance Fund. Further, it ensures rigorous debate of policy decisions made by the NCUA,” said Subcommittee Chairman Randy Neugebauer (R-TX).
“I am hopeful Chair Matz will address two issues in particular. First, the NCUA’s budget has increased each year since 2008, sometimes by double-digit percentages. However, during the same timeframe, the number of credit unions has dropped by nearly a quarter. I hope to hear Chair Matz outline clear justifications for this budget increase that does not appear to match supervisory demands,” Neugebauer added.
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