Removing Barriers Blog

Hensarling Set to Release Financial Reform Bill
Posted June 06, 2016 by CUNA Advocacy

In a speech tomorrow at the New York Economic Club, House Financial Services Committee Chairman Jeb Hensarling (R-TX) is expected to unveil a new financial reform initiative.  This effort, which is expected to resemble a complete overhaul of the Dodd-Frank Wall Street Reform and Consumer Protection Act, is based on seven key principles:

1.Economic growth must be revitalized through competitive, transparent, and innovative capital markets;

2.Every American, regardless of their circumstance, must have the opportunity to achieve financial independence;

3.Consumers must be vigorously protected from fraud, deception, and the loss of economic liberty;

4.Taxpayer bailouts of financial institutions must end and no company can remain too big to fail;

5.Systemic risk must be managed in a market with profit and loss;

6.Simplicity must replace complexity, because complexity can be gamed by the well-connected and abused by the Washington powers; and

7.Both Wall Street and Washington must be held accountable.

The effort is expected to include a community financial institution section, which could feature more than two dozen regulatory relief bills for community financial institutions, including the “Financial Institutions Examination Fairness and Reform Act (H.R. 1941),” the “Taking Account of Institutions with Low Operational Risk Act (H.R. 2896),” the “Portfolio Lending and Mortgage Access Act (H.R. 1210),” and the “Financial Institution Customer Protection Act (H.R. 766).”

While this legislation has little chance of moving through the legislative process this year, it is likely serve as an important part of the committee's agenda for next year.