U.S. Representative Ed Royce (R-Calif.), Chairman of the House Foreign Affairs Committee and a senior member of the House Financial Services Committee, highlighted the benefits of enacting a U.S.-EU covered agreement during a Housing and Insurance Subcommittee hearing entitled “Assessing the U.S.-EU Covered Agreement.”
“In my committees, there is a practical limitation, I usually only have three or four witnesses. But in this particular case, if we’re going to have a full conversation about this agreement, we do need to think about all the negotiating parties and all the parties affected that are not at the table: The USTR, the life insurers, the reinsurers, and the major brokers. The practical limitations do not allow us really to make the hearing that broad, but I would make that point.
If I could summarize where I think we are today in terms of these tracks. On the one hand, the states are going down a path where reinsurance collateral requirements are already being lowered, albeit at a snail's pace. In return, the EU has not agreed to any relief for U.S. insurers or reinsurers. It's possible we get nothing then, for something. That's one path.
Meanwhile, Congress gives Treasury and the USTR the power to negotiate a covered agreement. A power, by the way, which was debated in this very Committee and unanimously supported by both sides of the aisle on a bipartisan basis. Treasury and USTR then negotiated an agreement that effectively agrees to what the states have already agreed to do and lower the reinsurance collateral. In return, we open up the entire EU reinsurance market to U.S. reinsurers without discrimination, and we save direct writers billions of dollars in European compliance costs, which, as we have heard today, can be passed along to consumers. I would just ask Ms. Pusey, am I missing something here in the way this appears to me?" asked Chairman Royce.
"No sir, that's our read as well," replied Ms. Leigh Ann Pusey, President and Chief Executive Officer of the American Insurance Association.
“I would ask Mr. McRaith, without this agreement in place, we have seen regulators in the U.K., the Netherlands, Austria, Germany, and Poland place U.S. companies at a disadvantage. If we scrap this agreement, as some are suggesting today, where does that leave us? What are state regulators authorized to do to adequately address these issues? Is the EU looking to sign MOUs with 50 states?" asked Chairman Royce.
"U.S. reinsurers were being denied opportunities nine, ten months ago in the EU. We resolved that issue through the agreement and opened the entire European market to U.S. reinsurers. U.S. primary companies were being asked to comply with extraordinary regulatory requirements in the EU that could be increasingly burdensome but for this agreement. I can't speak to what the Europeans would do in the event this agreement were to fail in the United States, but I know... that our industry has a lot to lose and American insurance jobs are at stake," replied Mr. Michael McRaith, former Director of the Federal Insurance Office (FIO).
Watch Chairman Royce's remarks here or by clicking the image below.Read More
Democrats and a handful of Republicans are rallying around a bill designed to prevent President Donald Trump from lifting sanctions on Russia without congressional approval.
The measure, introduced by Rep. Steny Hoyer, D-Maryland, and cosponsored by top Democrats and at least three Republicans, would give Congress 120 days to block lifting any sanctions on Russia imposed in response to actions in Ukraine and Russia's efforts to interference in the 2016 election.
Rep. Adam Schiff, D-California, the top Democrat on the House Intelligence Committee, said questions about the Trump campaign’s alleged communications with Russian officials ahead of the election makes the proposed legislation “all the more important.”
“If there were condoned discussions that Flynn had or he was acting as free agent, this president shouldn't have ability to eliminate Russian sanctions,” he said at the Democrats' press conference.
“It's obvious and clear that Putin is testing the new administration,” said Rep. Eliot Engel, D-New York. “The last thing that the U.S. should consider is dialing back sanctions on Russia.”
Late last month, Trump said it was "very early to be talking about" lifting sanctions on Russia, but "if we can have a great relationship with Russia and with China, and with all countries, I'm all for that."
Democratic Whip Steny Hoyer, D-Maryland, said members hope the bill is a signal to the world that, despite Trump's public statements, Congress remains supportive of sanctions.
"We want to have no doubt about where we stand on these sanctions, our intention is to assure there will be a vigorous response to Russia's criminal behavior," he said.
None of the Republicans sponsoring the legislation, Reps. Adam Kinzinger of Illinois, Tom Rooney of Florida, and Mike Turner of Ohio, showed up for the news conference. All three had scheduling conflicts, according to their offices.
Top Republicans say they support moving legislation to keep sanctions in place in response to any administration efforts to weaken them.
"He hasn't endorsed any piece of legislation at this point, as the sanctions are still in place," House Speaker Paul Ryan's spokesperson AshLee Strong said of Ryan's position in an email.
"Russia should receive no sanctions relief until it abides by the terms of the Ukraine peace process. If sanctions are eased prior to Russia’s full compliance with the Minsk agreements, I will certainly move legislation to keep them in place," House Foreign Affairs Committee Chairman Ed Royce, R-California, said in a statement.Read More
Today, U.S. Representative Ed Royce (R-CA) questioned Chair of the Federal Reserve Board of Governors Janet Yellen on bolstering the safety and soundness of the U.S. financial system through the CHOICE Act and housing finance reform during a House Financial Services Committee hearing entitled "Monetary Policy and the State of the Economy."
“We know on the one hand, that overleveraged institutions are vulnerable to market shocks. We remember the consequences. If you look back at the overleveraging of the investment banks, the large ones, 40-to-1, and if you look at the GSEs that were leveraged at that time over 100-to-1. That was in the lead up to the financial crisis. So we can see that capital standards must play a role in building resilience in the U.S. financial system. On the other hand, raising capital also has a cost to the economy and a cost in terms of what it does to the potential for growth. So what we have here is a classic cost-benefit test. There is a benefit to higher capital standards: they reduce the risk of a future financial crisis and bailouts, as well as potentially increasing tax revenues. While the costs could be borne by borrowers in the form of higher funding costs and the economy as a whole with less capital formation and a lower GDP, you’ve got that on the other side of the equation. You’ve said in the past, cost-benefit analysis is difficult work. And I agree it is not easy, but it’s not impossible and it is important. In 2010, the Basel Committee did some work on this study. Also, researchers at George Mason recently published a paper on the 'Benefits and Costs of a Higher Bank Leverage Ratio,'" said Rep. Royce.
"So how do we get to the right number? Should it be 5 percent, the 10 percent in the CHOICE Act, or 23.5 percent as proposed by the Minneapolis Fed President? There’s quite a range there, and I don’t expect you to say a number today. But can’t you agree that a cost-benefit analysis could help us more effectively [regulate] that capital?” asked Rep. Royce.
"So I do agree, that in deciding on the appropriate level of capital standards we are weighing costs and benefits. The benefit of a lower probability of a financial crisis that has incredibly high costs, against the cost of slightly higher intermediation and borrowing costs. As you indicated, Basel III was partly informed by the Basel committee’s analysis of those costs and benefits and the Federal Reserve participated in producing that analysis. I think it did inform our views of what a reasonable level of capital requirements would be. The Minneapolis Fed study that you mentioned also contains cost-benefit analysis and draws the line differently," replied Chair Yellen.
“So from my standpoint, it seems to me that the Fed would be best suited to conduct the analysis and the research on this. We have such a range of opinions, although we agree on the basic concept here. So my question would be, short of us mandating the Fed do it, would there be a way for you to try to move forward and approximate what that ratio should be?" continued Rep. Royce.
“So there are different aspects of it as I said. We did do cost-benefit analysis and it informed our judgment at the time. You’ve referred several times to a leverage requirement, and I think our understanding of the risks facing banks lead us to think that a simple leverage requirement would not be an adequate way to determine capital. In particular, a simple leverage requirement treats the risk associated with a U.S. treasury and a junk bond identically and we think that capital requirements need to be risk sensitive with a leverage ratio serving as a backup," said Chair Yellen.
"There’s another question I wanted to ask you too and that’s yesterday you told Senator Crapo that the ‘goal of bringing private capital back into the mortgage market… is important.’ And that your hope is that ‘if there are guarantees [in the secondary mortgage market], that they would be recognized and priced appropriately.’ It is my understanding then that you believe that the pre-crisis GSE model of private gains and public losses did not price the government backstop appropriately?” concluded Rep. Royce.
"I think that's correct," answered Chair Yellen.
Watch Chairman Royce's questioning here or by clicking the image below.Read More
Today, U.S. Representatives Ed Royce (R-CA), Kyrsten Sinema (D-AZ), and Terri Sewell (D-AL) introduced H.R. 898, the Credit Score Competition Act. The bill enables Fannie Mae and Freddie Mac to consider alternative credit scoring models when making mortgage purchasing decisions.
“Alternative credit score consideration by the GSEs is a win-win: it opens up the market in a responsible manner for those qualified to buy a home and eliminates the government-backed monopoly in credit scoring. That's why the Credit Score Competition Act has garnered such strong bipartisan support," said Rep. Royce.
“Many creditworthy and financially responsible Arizonans don’t qualify for government-backed mortgages because of an outdated and flawed credit-scoring system,” said Sinema. “Fannie Mae and Freddie Mac should have the ability to look beyond traditional forms of credit and take into account factors including whether or not borrowers pay their rent on time. Our bipartisan solution helps more hardworking Arizona families achieve the American Dream,” said Rep. Sinema.
"Home ownership remains an integral part of the American Dream that shouldn’t be out of the reach for low-income, rural, and minority borrowers who lack access to traditional forms of credit. I am proud to help reintroduce this critically important legislation as Fannie Mae and Freddie Mac continue to rely on credit score models that are outdated and don’t necessarily take into account something as simple as whether borrowers have paid their rent on time. This legislation takes an important step towards addressing this issue and helps make homeownership a reality for more Americans across the country,” said Rep. Sewell.
Fannie Mae and Freddie Mac exclusively rely on a single credit scoring model to make mortgage purchasing decisions. When coupled with the GSEs’ overwhelming dominance of the secondary mortgage market, the result has been a government-backed monopoly in credit scoring. The Credit Score Competition Act directs the Federal Housing Finance Agency (FHFA) to create a mechanism that opens up the GSEs to alternative empirically derived and statistically sound credit scoring models.
Alternative credit scoring models are also more likely to take into account rent and utility payments. Allowing the GSEs to consider such scores will bolster the chances of young, African-American, and Hispanic buyers attempting to enter the market.
Last year, the Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled "Examining Legislative Proposals to Address Consumer Access to Mainstream Banking Services" during which witnesses testified on the benefits of enacting the Credit Score Competition Act.
Reps. Royce and Sinema are both members of the House Financial Services Committee. Rep. Sewell is seated on the House Ways and Means Committee.
U.S. Representative Ed Royce (R-Fullerton) released the following statement on last night's riots at the University of California, Berkeley and the President's reaction to the events:
“Cal students on work-study or scholarships shouldn’t be punished for the actions of a select few, and I’ll push back against any move to do so. UC Berkeley was right to embrace a free exchange of ideas. Those who destroyed campus property or committed acts of violence should be prosecuted to the fullest extent of the law."
U.S. Representative Ed Royce (R-Fullerton), Chairman of the House Foreign Affairs Committee, celebrated the Lunar New Year this past weekend throughout Southern California. He attended the following events:
- Irvine Chinese School/SCCCA Lunar New Year Event (Irvine, CA)
- Sunny Hills High School Lunar New Year Event (Fullerton, CA)
- Hsi Lai Temple Lunar New Year Event (Hacienda Heights, CA)
- Korean American Federation of Orange County's 2017 New Year Music Night (Anaheim, CA)
- Orange County Supervisor Andrew Do's 2nd Annual Tet Concert Celebration (Fountain Valley, CA)
- TECO Lunar New Year Event (El Monte, CA)
"The Lunar New Year brings friends and family together for good food, festivities, and blessings for the new year. Thank you to the many members of our community that invited me to share in this joyous occasion with them. I wish everyone a healthy and prosperous Year of the Rooster," said Chairman Royce.
Free Grant Seminar For Nonprofit Organizations
Hosted by the Office of Representative Ed Royce (CA-39)
in conjunction with CSUF’s Gianneschi Nonprofit Summer School
Date: Wednesday, August 17, 2016
Time: 1:00 PM to 4:00 PM
Location: California State University, Fullerton Mihaylo College of Business and Economics, SGMH 1406
2550 Nutwood Ave. Fullerton, CA 92831
Parking and Directions here.
R.S.V.P. required here.
Programs for Nonprofit Organizations
Grant Assistance from Representative Ed Royce
U.S. Representative Ed Royce (CA-39) invites you to attend the:
Congressional App Challenge STEM Competition
2016 Exhibit and Awards Ceremony
Date: Wednesday, February 17, 2016
Time: 7 PM PST
Location: Richard Nixon Presidential Library and Museum
Address: 18001 Yorba Linda Blvd., Yorba Linda, CA 92886
- Discover the winners of the 2016 STEM Competition
- View innovative mobile apps created by CA-39's brightest minds
Featured speakers include:
Marc Fischer, CEO and Co-Founder of Dogtown Media
LTC Dennis Sugrue, L.A. Deputy Commander of the U.S. Army Corps of Engineers
Tom Ward, CTO of MEDL Mobile
Competition judges include:
Nanxi Liu, CEO and co-founder of Enplug, Inc.
Simon Evans, professional civil engineer and certified floodplain manager
Dr. Keun-Hang Susan Yang, Ph.D, Director of International Science Programs and Professor of Computational Biology/Neuroscience and Bioscience at Chapman University
Laurie Smith, Program Manager at Science@OC
Chi Ni, Founder of Straight A, Inc.
RSVP to Stephanie Hu at Stephanie.Hu@mail.house.gov or (626) 964-5123. More event details can be found here.
Webinar participants will learn how MIT App Inventor can help you design, build, and submit an Android app just in time for the April 30th STEM Competition deadline!Students entering the competition must submit their app’s source code online during the Competition Submission Period between 12 PM Eastern Standard Time on FEBRUARY 1ST, 2014, and 11:59 PM Eastern Daylight Time on APRIL 30TH, 2014, as well as provide a YouTube or VIMEO video demo explaining their app and what they learned through this competition process. Learn more about Rep. Royce's 2014 STEM Competition here or by following #2014RoyceSTEM on Facebook and Twitter. You can also download the Rep. Royce STEM Competition mobile app, available for free in the iTunes store (Android version coming soon).
On Monday, November 4th, Rep. Ed Royce, Chairman of the House Foreign Affairs Committee, will hold the Committee’s first field hearing to examine international human trafficking and to assess efforts to combat trafficking at the international, Federal, State and local levels. The hearing, entitled “Regional Perspectives in the Global Fight Against Human Trafficking,” will begin at 10:00 a.m. PT will be held in the Titan Student Union building on the campus of California State University, Fullerton.
Note: Earlier this year, Chairman Royce launched a Human Trafficking Congressional Advisory Committee (HTCAC), which is comprised of victims’ rights groups, local and federal law enforcement agencies, and community advocates. HTCAC meets on a monthly basis to address human trafficking concerns, as well as offer policy recommendations. In May, Chairman Royce convened a Committee hearing to examine local and private sector initiatives to combat international human trafficking.
Hearing: “Regional Perspectives in the Global Fight Against Human Trafficking”
California State University, Fullerton
Titan Student Union
800 N. State College Blvd.
Fullerton, CA 92834
For a campus map and parking information click HERE.
Monday, November 4, 2013
10:00 a.m. PT
The Honorable Luis CdeBaca
Office to Monitor and Combat Trafficking in Persons
U.S. Department of State
The Honorable Tony Rackauckas
Office of the Orange County District Attorney
Ms. Kay Buck
Executive Director and Chief Executive Officer
Coalition to Abolish Slavery and Trafficking
*Witnesses may be added.
***Important planning note for press covering hearing:
The hearing will be webcast at www.foreignaffairs.house.gov.
Members of the media must RSVP by Friday, November 1 at 12 p.m. to Audra McGeorge at email@example.com to receive credentials to cover the hearing from the press viewing area.
Following the hearing, there will be a media availability to discuss human trafficking.Read More
The event will feature Keynote speaker Rebekah Bell whose opinion piece in the Wall Street Journal on how she graduated from college debt-free offered important advice to students on avoiding crushing student loan debt. Additionally, the seminar will provide information about the Free Application for Federal Student Aid (FAFSA) program as well as other federal and private student loans, grants, and other financing options.
A member of Rep. Ed Royce's staff will be available for mobile office hours on Thursday, October 3rd in the Red Tailed Hawk Room in the City Clerk’s Office at Chino Hills City Hall (14000 City Center Dr.). Mobile office hours provide an opportunity for constituents to meet with Rep. Royce and his staff members for assistance with a variety of services and issues. Office hours on Thursday, October 3rd will be held from 9:00am - 4:00pm. Please call (909) 420-0010 with any questions.Read More
2185 Rayburn HOB
Washington, DC 20515
U.S. Representative Ed Royce (R) is serving his eleventh term in Congress representing Southern California’s 39th District, based in Orange, Los Angeles, and San Bernardino Counties. He and his wife, Marie, are longtime residents of Fullerton, CA.
Royce’s priorities in Congress are: addressing our national debt, protecting our homeland, eliminating pork-barrel spending, fighting crime and supporting victims of crime, strengthening education for all students, spurring job creation and strengthening Social Security and Medicare.
Royce has a strong history of public service. In 1982, he was elected to the California State Senate where he began his fight for victims’ rights. He authored the nation’s first anti-stalker law and versions of his bill have been adopted in all 50 states. He was also the legislative author and campaign co-chairman of California’s Proposition 115, the Crime Victims/Speedy Trial Initiative, approved by the voters in 1990. In Congress, Royce continues his fight for victims’ rights. He wrote and passed the Interstate Stalking Punishment and Prevention Act in 1996. This law makes it a federal crime to pursue a victim across state lines and enables law enforcement to intervene before violence occurs. Royce was active in passing AMBER Alert legislation in 2003, and legislation in 2004 to enhance rights for victims of crime. He currently is a member of the Victim’s Rights Caucus.
For the 113th Congress, Royce was selected to be Chairman of the House Foreign Affairs Committee. Royce has served on the Committee since entering Congress in 1993. Immediately prior to becoming Chairman of the Committee, Royce served as Chairman of the Subcommittee on Terrorism, Nonproliferation, and Trade and a member of the Subcommittee on Asia and the Pacific.
As a senior member of the House Financial Services Committee, Royce sits on two Subcommittees: Capital Markets and Government Sponsored Enterprises, and Insurance and Housing. Royce has served on the conference committees for some of the most significant legislation in the financial services arena. For more than a decade Royce has called for a stronger federal regulator to limit Fannie Mae and Freddie Mac’s excessive risk taking at the expense of taxpayers. In 2003, he was the first member of Congress to write legislation calling for a single regulator under the Treasury Department for the three housing government sponsored enterprises: Fannie Mae, Freddie Mac, and the twelve Federal Home Loan Banks.
Royce has consistently earned honors and awards from the National Taxpayers Union, Citizens Against Government Waste, National Federation of Independent Businesses, Watchdogs of the Treasury, Americans for Tax Reform, U.S. Chamber of Commerce, United Seniors Association, 60 Plus, American Share Holders Association, Citizens for a Sound Economy and the Small Business Survival Committee.
A California native, Royce is a graduate of California State University, Fullerton, School of Business Administration. Prior to entering public service, his professional background includes experience as a small business owner, a controller, a capital projects manager, and a corporate tax manager for a Southern California company. Royce and his wife, Marie, have been married for 28 years.
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Keep up with our live updates: The strongest storm in years is moving into L.A. area https://t.co/LT5hMMc5wf
Joined Regional Chamber of Commerce San Gabriel Valley for its #SalutetoHeroes. Thanked law enforcement and spoke to local small business
A visit today with the Los Angeles County Sheriff's Department turned into a solemn reminder of the sacrifices that our men and women in law
Via ABC News - "Russia should receive no sanctions relief until it abides by the terms of the Ukraine peace process. If sanctions are eased prior
Please be careful. Avoid travel and stay indoors if possible.
Thanks to Phil Yarbrough from the Rancho Santiago Community College District for stopping by. We discussed Pell Grant funding and other ways