WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, today voted for three pieces of legislation before the Financial Services Committee to stop the sale of U.S. aircrafts to Iran from entities like Boeing.
“It’s crazy for the Obama Administration to allow U.S. companies to sell airplanes to the largest state sponsor of terror in the world, Iran, and it’s even crazier to allow the U.S. financial system to finance these transactions or use taxpayer dollars to back these deals,” said Garrett. “Since the president is willing to put the needs of Iran before our national security, and entities such as Boeing and the Export-Import Bank are more concerned about profits than stopping terrorists, Congress must put an immediate stop to this dangerous idea. The legislation before the Financial Services Committee today will ensure that taxpayer money and the U.S. financial system is never used to assist an Iranian regime that wants to destroy the United States and its allies.”
Legislation before the committee:
H.R. 5729, Prohibits the Secretary of the Treasury from licensing the export of commercial aircraft to Iran.
H.R. 5711, Prohibits the Secretary of the Treasury from authorizing transactions by U.S. financial institutions in connection with these sales.
H.R. 5715, Ensures that no taxpayer dollars will back these sales in the form of Ex-Im financing by codifying and strengthening a current prohibition on Ex-Im support for Iran contained in annual appropriations language and closing a loophole that could allow for indirect Ex-Im financing of aircraft deals with Iran through third-party leasing companies.
By authorizing aircraft sales to the ayatollahs, the Obama Administration would materially aid what its own State Department calls the world’s foremost state sponsor of terrorism. Just last month, Iran Air flew “known weapons resupply routes to Syria” three times. This is the very airline President Obama wants to receive new Boeing airplanes. Additionally, neither the Treasury Department nor Boeing has provided assurances that Iran Air will not transfer planes to other airlines.
Under current law, Ex-Im may indirectly finance planes being exported to Iran, particularly by providing support to aircraft leasing companies. This is a loophole that Congress must close. When selling the nuclear deal, the Obama Administration has explicitly stated that Iran will not have access to the U.S. financial system. Any authorization of U.S. financing for aircraft exports would show that the Administration has been misleading the public.
Garrett has been an outspoken critic of the Ex-Im bank and the Iran nuclear deal.
Press Release - Garrett: Boeing deal with Iran proves crony capitalism is alive and well
Press Release - Garrett Statement on Iran Nuclear Arms Deal
Press Release - Garrett Introduces Bill to Ensure U.S. Never Assists Iran’s Nuclear Program
Jewish Link of New Jersey - Now Is the Time for Action on Iran Deal
The Record - Garrett vows to keep fighting Iran agreement
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statements after the Securities and Exchange Commission (SEC) today announced changes to their in-house administrative law panels and proposed rules for public company disclosure requirements. Garrett’s subcommittee oversees the SEC, and he is the author of legislation dealing with both of these issues.
In-House Administrative Law Panels:
“While I appreciate the SEC acknowledging the serious due process concerns that have been raised because of their unfair use of in-house judges, the changes adopted today effectively put a Band-Aid on a wound that requires stitches,” said Garrett. “This is an extremely modest step in the right direction, but defendants ultimately deserve a right to remove themselves from the SEC’s tribunals so they can have their case heard in federal court, as prescribed by the Due Process Restoration Act. Until every American is promised that basic Constitutional right, we won’t have real justice.”
In the wake of the 2010 Dodd-Frank Act, which granted the SEC expanded administrative enforcement powers, the SEC started trying an increasing number of alleged wrongdoers before its in-house administrative panels rather than in the federal courts established by Article III of the Constitution. Garrett is a prominent critic of the SEC’s use of in-house tribunals and is the author of the Due Process Restoration Act that would rein-in the SEC’s controversial overuse of in-house administrative law judges and ensure that all Americans are given due process by allowing defendants the option of having their case heard before a federal court.
“In a world of speed and efficiency, the rules governing disclosure requirements from U.S. companies have been stuck in the Stone Age,” said Garrett. “I am pleased that the SEC is finally taking steps to meet statutory requirements to simplify and modernize our outdated disclosure regime. These proposals are a positive development for both businesses and investors that have been trapped for too long under a mountain of government-mandated paperwork that stifles our capital markets.”
In December, President Obama signed the FAST Act which included Rep. Garrett’s bill, the Disclosure Modernization and Simplification Act. This bill requires the SEC to take steps to modernize the current disclosure regime by eliminating any outdated or duplicative disclosure requirements and ensure that investors get the information they need to make informed decisions. After missing its June 1, 2016 deadline to propose a rule, Rep. Garrett called on SEC Chair Mary Jo White to propose rules to fulfil their Congressionally-mandated requirements immediately.
WASHINGTON, D.C. – Capital Markets and Government-Sponsored Enterprises Subcommittee Chairman Scott Garrett (NJ-05), delivered the following remarks at a hearing entitled “Making a Financial Choice: More Capital or More Government Control?”:
Congressman Scott Garrett’s opening remarks as prepared for delivery:
Thank you Mr. Chairman, and thank you to all the witnesses for being here today
I think it is Einstein who is credited with saying, “The definition of insanity is doing the same thing over and over again, while expecting a different result.”
For too long, our financial regulatory system has been governed by a global network of detached elites who believe they are smarter than the market when it comes to allocating credit and assessing risk
The prudential regulator bigwigs that make up the Basel Committee have for years gamed capital standards to ensure that investment flowed into politically-favored asset classes – whether it was the debt of profligate nations or the subprime mortgage market
This approach failed spectacularly in 2008 and the years since, but unfortunately regulators and the Obama Administration have “doubled-down” on the failed policies of the past
Today, the “risk-weighted” capital regime under Basel is more complex, more costly, and more risky than ever before, and I have no doubt that if left unaddressed, it will contribute to the next crisis as well
Fortunately, the CHOICE Act offers us a way out by pointing us towards a system that will allow the market to determine the risk of a financial institution, and make it unlikely that taxpayers will ever be called on again to bail out Wall Street and the bad decisions of regulators who oversee it
I look forward to hearing from our witnesses today, and I yield back
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) issued the following statement after he voted “no” on H.R. 5606, the Sharing is Strength Act.
“The so-called Sharing is Strength Act has nothing to do with terrorism and has everything to do with the government having the ability to attain personal financial information from the American people, even if it has no connection with terrorism. This bill falls well short in providing the necessary constitutional safeguards to protect innocent people from unlawful searches and seizures, therefore I could not support it.”
“Additionally, this bill skipped the normal legislative process that should include committee hearings, a time for Members to offer amendments, and debate on the House floor. The American people deserve transparency and an open process from the People’s House, and they deserve to know that their constitutional rights are being protected.”
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) issued the following statement after the House Financial Services Committee released a staff report of its investigation into the U.S. Department of Justice’s (DOJ) decision not to prosecute HSBC or any of its executives or employees for serious violations of U.S. anti-money laundering laws and related offenses.
“While the vast majority of Americans pay a price if they break the law, the Justice Department has once again proven that the rules don’t apply to those with special privileges and connections under the Obama Administration,” said Garrett. “Despite their best efforts for three years to side-step Congressional inquiries and oversight, the House Financial Services Committee was able to find that DOJ has been misleading the American people about their decision not to prosecute HSBC employees and executives on anti-money laundering charges, proving that too-big-to-jail is alive and well.”
The Committee initiated its investigation in March 2013. The Department of Justice (DOJ) and the Department of the Treasury failed to comply with the Committee’s requests to obtain relevant documents, necessitating the issuance of subpoenas to both agencies.
Approximately three years after its initial inquiries, the Committee finally obtained copies of internal Treasury records showing that DOJ has not been forthright with Congress or the American people concerning its decision to decline to prosecute HSBC. To read the House Financial Services Committee’s full report, click here.
Garrett is Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.
WASHINGTON, D.C. – Today the House passed Rep. Scott Garrett’s (NJ-05) amendment to the Financial Services and General Government Appropriations bill. The amendment would prevent the Secretary of the Treasury and the Chairman of the Securities and Exchange Commission, both voting members of Financial Stability Oversight Council (FSOC), from designating any additional nonbank companies as Systemically Important Financial Institutions (SIFIs).
“American taxpayers shouldn’t be on the hook to bail out big banks, Wall Street, and any other financial institution that the government decides is too-big-to-fail,” said Garrett. “As the FSOC designates both banks and non-banks as ‘systemically important,’ it essentially puts the government’s stamp of approval for taxpayer bailouts into federal law. I’m pleased that my colleagues took a stand today to protect the wallets of millions of hardworking Americans who make their financial decisions around kitchen tables instead of Wall Street board rooms.”
During the 2008 crisis, the taxpayers were forced to spend billions of dollars to bail out financial institutions that were considered too big to fail. The Dodd-Frank Act codified the government’s ability to designate specific banking firms as too-big-to-fail, and gave FSOC the ability to designate additional non-banks as well.
Rep. Garrett is Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises. He is the sponsor of the Bailout Prevention Act and the Financial Stability Oversight Council (FSOC) Transparency and Accountability Act.
By Rep. Scott Garrett
The most important financial decisions in life aren't made in Wall Street board rooms or by bureaucrats in Washington — they're made around kitchen tables. Around these tables families look at their bills, their savings, their job prospects and their personal finances and try to figure out how to get ahead in this terrible economy. Unfortunately, the Dodd-Frank Act, the law that was enacted in 2010 with huge promises of economic recovery, has stifled the financial success of families, businesses and entrepreneurs.
And while you might not know Dodd-Frank by name, you have certainly felt its impact in your wallet. The architects of Dodd-Frank crafted an onerous maze of regulations and rules that put Washington priorities ahead of the needs of American families. Since Dodd-Frank became law, free checking has largely disappeared, and the American Dream has become more difficult to make a reality — especially if you're self-employed — since it's become harder to obtain a loan to buy a new house or start a business. In fact, the rate of new business start-ups is near a 20-year low, and last month's jobs report was the worst since 2010.
Not only has Dodd-Frank made it harder for Americans to get ahead, it makes yet another bailout of Wall Street more likely. During the 2008 crisis, the taxpayers were forced to bail out big banks considered "too big to fail." Today, those banks are bigger, and Dodd-Frank enshrines in law the expectation that taxpayers will once again be on the hook for costly bailouts.
I'm joining my colleagues on the House Financial Services Committee to propose a blueprint for American financial success. The Financial CHOICE Act — which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs — is designed to revitalize economic growth through competitive capital markets. This plan will fix the problems of Dodd-Frank by increasing punishment for crooks, ending taxpayer bailouts, scaling back poorly designed regulations and holding Washington accountable to We the People.
Penalties for fraud
To better protect consumers, the Financial CHOICE Act imposes the toughest — and most expensive — penalties in history for fraud and deception. The Securities and Exchange Commission will have new authority to increase punishment for repeat offenders and link fines to investor losses. This will make sure that fraudsters who stole or scammed huge amounts of money from inno-cent people won't get just a slap on the wrist for their crimes.
Our plan offers economic opportunity for all and bailouts for none. Dodd-Frank made promises to end "too big to fail" that were never kept. We can end this cycle by forcing failing institutions to file for bankruptcy. Our plan reforms the bankruptcy code to protect taxpayers and instill much-needed market discipline. Taxpayers shouldn't be on the hook for the mistakes of big banks and Wall Street, and under our plan they never will be again.
One of the key tenets of the Financial CHOICE Act is an optional "off-ramp" for financial institutions to break free of Washington's one-size-fits-all rules. But the condition for being free of excess regulation is a strong capital standard, which means that banks will be forced to hold assets to back up their liabilities. By passing the CHOICE Act, we can both manage liabilities and let banks do what they do best: invest in the next American Dream.
Washington desperately needs transparency. Dodd-Frank created bureaucracies like the Consumer Financial Protection Bureau that gave immense power to a single, politically appointed director who makes economic decisions on your behalf. The CFPB tells you what financial products you can have or not have because they think they know what's best for you when it comes to loans, mortgages and car purchases.
Our plan makes the CFPB, and other unaccountable agencies, into bipartisan commissions. We would also require all financial regulations to undergo strict cost-benefit tests to make sure they're not doing more harm than good. And we would change the system to ensure that all major financial regulations are approved by Congress before they are imposed on the American people.
Resistance by banks
I expect that it will be difficult to get support for bottom-up solutions like the Financial CHOICE Act in Washington. This plan is hated by big banks and crony capitalists that are all going to lose influence and power over the rest of America if this bill is passed. However, I believe that Congress can make this necessary reform with the support of people who are more concerned about the financial decisions made around kitchen tables than they are with protecting the interests of Washington insiders.
People in northern New Jersey don't need economic reports to tell them that the economy is still in bad shape. We see it every day in our bank accounts and in our towns. Recovery can happen, and we can be prosperous again, but it has to start in our communities — not in Washington. The Financial CHOICE Act can help make that possible.
Rep. Scott Garrett, R-Wantage, serves New Jersey's 5th Congressional District. He is chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.Read More
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, released the following statement after the Federal Housing Finance Agency (FHFA) issued an alert that Fannie Mae increased the projected budget for their new Washington, D.C. headquarters by over 50 percent. Fannie Mae is one of the government-sponsored enterprises that was put in conservatorship after taking a $200 billion taxpayer bailout in 2008.
“Like a child with a credit card in a toy store, the bureaucrats at Fannie Mae just couldn’t help themselves. After being forced to bail out the GSE's to the tune of nearly $200 billion, American taxpayers now get the news that they are underwriting lavish spending at Fannie Mae's new downtown Washington, D.C. headquarters. So while Americans around the country are living paycheck to paycheck, Washington insiders are blowing through budgets by designing glass enclosed bridges and rooftop decks.
“Even more troubling, the Federal Housing Finance Agency—the entity whose sole job it is to oversee the GSE's—appears to have been asleep at the wheel as costs spiraled out of control. This is the same FHFA that just last year thought it was a good idea to give GSE executives a pay raise to nearly $4 million. This complete failure by FHFA and the excess displayed by Fannie Mae are the exact reasons why the American people are disgusted by business as usual in Washington, D.C.”
To read the full report, click here.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, released the following statement after the House Financial Services Committee passed two bills he introduced; H.R. 5429, the SEC Regulatory Accountability Act and H.R. 4852, the Private Placement Improvement Act of 2016. In addition to Garrett’s bills, the subcommittee passed seven additional bills that Garrett guided through his subcommittee:
“Last month’s abysmal jobs report proves again that top-down, Washington-first economic policies are failing the American people. If we want to revitalize the economy, Congress needs to promote investment and reduce red tape by making it easier for investors and businesses across America to access capital and grow. Today the Financial Services Committee took steps to do that by passing two bills I sponsored and seven more from the Capital Markets subcommittee.
“My bills do two simple things. First, every business and every family does their own version of a cost-benefit analysis when making financial decisions, and the SEC will have to do the same under the SEC Regulatory Accountability Act. Second, the SEC needs to make sure it is implementing the JOBS Act to jumpstart the economy instead of imposing additional restrictions on investment. The Private Placement Improvement Act is designed to fix that problem.”
So far this Congress, 10 bills from Garrett’s subcommittee have been signed into law by President Obama—all with bipartisan support. With the passage of 9 bills today, 39 total bills from the Capital Markets subcommittee have been approved by the full committee this Congress.
H.R. 5429, the SEC Regulatory Accountability Act
The SEC has a three-part mission, investor protection, orderly markets, and capital formation. To make sure that the SEC is not restricting the flow of capital into our economy, Garrett’s bill would require the SEC to demonstrate that any rules it proposes will help our businesses grow by performing a cost-benefit analysis.
This codifies guidance that President Obama gave to executive branch agencies and will lend credibility to the SEC’s rules. Garrett’s bill ensures that businesses and start-ups have suitable supervision from the SEC and are not burdened by costly overregulation. The SEC Regulatory Accountability Act passed the House in 2013, as H.R. 1062, by a bipartisan vote.
H.R. 4852, the Private Placement Improvement Act
The SEC has the responsibility of implementing the innovative laws Congress passed in the JOBS Act and continues to have oversight of the private offering market for securities. However, the SEC was a year and a half late in making rules for general solicitation of private offerings under Title II of the JOBS Act, and continued a poor streak when, in 2013, it came out with new proposals to impede the private offering market.
The proposals would have hindered all Reg. D issues and not just those using general solicitation. The threat of expensive regulation hanging over the heads of investors has meant that the amount of capital raised under Reg. D has not grown in the manner that other areas of the market helped by the JOBS Act have. Garrett’s bill makes a single notice of sales sufficient for exemption from regulation under Reg. D and helps the JOBS Act reach its full potential by maintaining a clear and common-sense approach to regulations for private offerings.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) released the following statement in response to reports that Boeing has reached a multibillion-dollar deal to sell commercial passenger planes to Iran. Boeing is one of the largest beneficiaries of the Export-Import (Ex-Im) bank which perpetuates corporate welfare to mega corporations by handing out taxpayer-backed loans.
"This agreement between Boeing and the world's largest state sponsor of terrorism is extremely troubling and shows that crony capitalism remains alive and well in Washington. Not only has Boeing lobbied for years to keep the taxpayer-backed Export Import bank alive, it now has also used its powerful position to take advantage of the ill-conceived nuclear deal with Iran. This agreement is bad news, not just for taxpayers but for our national security."
Boeing was lobbying Congress to keep their Ex-Im bank subsidies at the same time it was seeking carve outs from the Obama Administration to do more business with the dangerous Iranian regime. Garrett has been an outspoken critic of the Ex-Im bank and the Iran nuclear deal.
Garrett on Ex-Im:
Press Release - Garrett Fights Washington's Addiction to Crony Capitalism by Voting Against Ex-Im Reauthorization
Press Release - Garrett: Congress Should Put the Export-Import Bank Out of Business
Garrett on Iran Nuclear Deal:
Press Release - Garrett Statement on Iran Nuclear Arms Deal
Jewish Link of New Jersey - Now Is the Time for Action on Iran Deal
The Record - Garrett vows to keep fighting Iran agreement
Press Release - A Bad Deal for the U.S. and its Allies
2232 Rayburn HOB
Washington, DC 20515
On January 3, 2013, Congressman Scott Garrett was sworn in to the United States House of Representatives, representing New Jersey’s 5th Congressional District. Since his election to Congress in 2002, Scott has burnished himself with a reputation as a leading advocate of tax relief and pro-growth economic policies, earning him awards and accolades from a number of national taxpayer and small business groups.
As a senior member of the House Budget Committee, Scott is on the frontline of House Republican efforts to rein in runaway government spending and shrink our country’s ballooning national debt.
A member of the House Financial Services Committee since his election to Congress, Scott has been at the forefront of public policy deliberations dealing with issues related to the financial services industry, developing considerable expertise in areas ranging from securities and finance to insurance and regulatory oversight.
At the beginning of the 112th Congress, Scott was selected to serve as the Chairman of the Financial Services Subcommittee on Capital Market and Government-Sponsored Enterprises. In this role, Scott presides over the subcommittee with jurisdiction over the Securities and Exchange Commission (SEC) and government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. In addition, the subcommittee also handles all matters related to capital markets activities such as business capital formation and venture capital, as well as derivative instruments.
As founder and Chairman of the Congressional Constitution Caucus, Scott is highly respected among his House colleagues as an authority on constitutional issues. Founded in 2005, the Constitution Caucus provides an effective forum for education on constitutional principles and discussion on the appropriate limitations of congressional action.
Born in Englewood, Scott has spent much of his life living in North Jersey, which has instilled in him a great appreciation for the outdoors. He is a leading proponent of preserving open space and protecting such natural treasures as the Highlands, the Musconetcong River and the Wallkill River National Wildlife Refuge.
Prior to his election to Congress, Scott served in the New Jersey General Assembly from 1990 to 2002, as the senior Assemblyman for the 24th Legislative District, Assistant Majority Leader, and Chairman of the Banking and Insurance Committee. During his tenure, he also served on the Education, Transportation, Agriculture & Natural Resources Committees, as well as the Joint Committee on Public Schools.
Scott earned his Bachelor of Arts degree from Montclair State University and his Juris Doctor from Rutgers School of Law – Camden.
Scott resides in Wantage Township in Sussex County with his wife, Mary Ellen, and their two daughters, Jennifer and Brittany.
Retweeted by repgarrett
I'm pleased we were able to ensure that our heroes from northwest NJ have a VA clinic to treat them closer to home. https://t.co/Yx7XAo0mDv
Retweeted by repgarrett
Six years ago, DoddFrank was signed with promises to fix our economy. Instead, it has crippled the financial goals of millions of Americans
Retweeted by repgarrett
Retweeted by repgarrett
Retweeted by repgarrett
Today, the House voted on the Separation of Powers Restoration Act to rein-in tyrannical government bureaucracies https://t.co/xsIvoG9URU
Today's terrible GDP report is another signal that our economy is still struggling. It's obvious that top-down, Washington-knows-best policies
I'm extremely pleased that my colleagues and I were able to fight on behalf of our constituents to get this new VA facility so the veterans of
Today marks six since years since the Dodd-Frank Act was signed with promises to restore our economy. Instead, it has crippled the financial
It’s crazy for the Obama Administration to allow U.S. companies to sell airplanes to the largest state sponsor of terror in the world, Iran,
While everyone knows the three branches of government, a fourth, shadow branch with tremendous power has emerged. This de facto branch is the