Posted on June 9, 2017 June 9, 2017

House Approves Financial CHOICE Act In Major Step to Repealing Dodd-Frank

June 9,2017

the staff of the Ridgewood blog

Washington DC, The House on Thursday passed the Financial CHOICE Act, legislation to overhaul and replace the failed Dodd-Frank Act that has contributed to the worst economic recovery of the last 70 years.“Every promise of Dodd-Frank has been broken,” said Financial Services Committee Chairman Jeb Hensarling (R-TX), as he read letters from Americans about how they were declined home, automobile and small business loans due to Dodd-Frank’s burdensome regulations. “Fortunately there is a better, smarter way. It’s called the Financial CHOICE Act. It stands for economic growth for all, but bank bailouts for none. We will end bank bailouts once and for all. We will replace bailouts with bankruptcy. We will replace economic stagnation with a growing, healthy economy,” he said.

“We will make sure there is needed regulatory relief for our small banks and credit unions, because it’s our small banks and credit unions that lend to our small businesses that are the jobs engine of our economy and make sure the American dream is not a pipe dream,” said Chairman Hensarling.

CHOICE, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, has received strong support from community banks and credit unions. Large financial institutions did not offer their support for the Financial CHOICE Act. Instead, Wall Street CEOs have publicly said they do not support repealing Dodd-Frank.

The Congressional Budget Office reports the Financial CHOICE Act would reduce the deficit by $33.6 billion over 10 years and that the bill’s regulatory relief would benefit community banks and credit unions. The nation’s largest banks would be unlikely to raise enough capital to meet the bill’s requirement for substantial regulatory relief, the CBO reported.

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts: that’s at the core of the Financial CHOICE Act. With changes to the bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading. Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time the Financial CHOICE Act holds Wall Street accountable, it also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.

STRONGLY CAPITALIZED BANKS

Dodd-Frank’s one-size-fits-all regulations treat all financial institutions the same, regardless of their size. That makes no sense and hurts smaller, hometown banks and credit unions that did nothing to cause the last financial crisis.

The Financial CHOICE Act is based on two important principles: First, all banks need to be well-capitalized and, second, community banks and credit unions deserve relief from the crushing burden of over-regulation. Under the Financial CHOICE Act, banks and credit unions will qualify for regulatory relief if they elect to maintain enough capital to ensure that if they get in trouble, taxpayers won’t be forced to bail them out. Ninety-eight percent of the financial institutions that met the Financial CHOICE Act’s requirements for being well-capitalized did not fail during the financial crisis. Of the miniscule percentage that did fail, none posed a systemic risk.

EMPOWER AMERICANS

The Financial CHOICE Act grows our economy from Main Street up. Dodd-Frank tries to control the economy from Washington down. The Financial CHOICE Act will help get credit and capital into the hands of working men and women to fuel their economic growth.

Posted on April 20, 2017 April 20, 2017

House GOP Moves to End “Bailout Nation” with the Financial CHOICE Act

No More Bank Bailouts, Accountability for Wall Street and Washington, Economic Growth at the Core of Republican Plan

April 20,2017

the staff of the Ridgewood blog

WASHINGTON – Financial Services Committee Chairman Jeb Hensarling (R-TX) today announced that the Committee will hold a hearing to discuss the Financial CHOICE Act on Wednesday, April 26 at 10:00 a.m.

“Republicans are eager to work with the President to end and replace the Dodd-Frank mistake with the Financial CHOICE Act because it holds Wall Street and Washington accountable, ends taxpayer-funded bank bailouts, and unleashes America’s economic potential,” said Chairman Hensarling. “We want economic opportunity for all, bailouts for none. We want real consumer protections that will give you more choices. Our solution grows the economy from Main Street up, creates more opportunities for working families to get ahead, and levels the playing field with no more Wall Street bailouts.”

CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.

The ideas and principles behind the Financial CHOICE Act were first unveiled last June by Chairman Hensarling in a speech to the Economic Club of New York. The Financial Services Committee approved the Financial CHOICE Act in September. The Committee will discuss an updated version of the bill at Wednesday’s hearing.

“Supporters of Dodd-Frank promised it would lift the economy, end bailouts and protect consumers. Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices. Dodd-Frank failed to keep its promises to the American people, but we will work with President Trump to follow through on his promise to dismantle Dodd-Frank. That’s not what Wall Street wants, but it is what hardworking Americans need to have a healthier economy with more opportunities so they can achieve financial independence.”

FINANCIAL CHOICE ACT AT A GLANCE:

BANKRUPTCY, NOT BAILOUTS

No more bailouts: that’s at the core of our plan and our commitment to hardworking taxpayers. With bipartisan changes to our bankruptcy code, large financial firms can fail without disrupting the entire economy or forcing hardworking taxpayers to pay for more bailouts.

ACCOUNTABILITY FOR WALL STREET AND WASHINGTON

The Financial CHOICE Act includes the toughest penalties in history for those who commit financial fraud and insider trading. Holding Wall Street accountable with the toughest penalties in history will deter corporate wrongdoing and better protect consumers. At the same time we hold Wall Street accountable, the Financial CHOICE Act also holds Washington accountable. Tougher accountability for Wall Street and Washington will protect the integrity of our markets so they benefit ordinary Americans who are working, saving and investing.

STRONGLY CAPITALIZED BANKS

EMPOWER AMERICANS

Posted on February 15, 2017 February 15, 2017

President Trump: Continues his Crusade of Cutting Red Tape for American Businesses

February 15,2017

the staff of the Ridgewood blog

Washington DC, Yesterday, President Donald J. Trump signed legislation (House Joint Resolution 41) eliminating a costly regulation that threatened to put domestic extraction companies and their employees at an unfair disadvantage.

This creates a level playing field with companies like BP who were formed solely for the purpose of bribing, ie political contributions, PILOT, jobs, taxes and so on foreign governments to exploit the natural resources.

Critics of the Gulf Oil spill have long claimed BP bribed its way out of trouble in the gulf with a huge payment to the Obama Administration.

H.J. Res. 41 blocks a misguided regulation from burdening American extraction (oil )companies.

By halting this regulation, the President has removed a costly impediment to American extraction companies helping their workers succeed. This legislation could save American businesses as much as $600 million annually in regulatory compliance costs and spare them 200,000 hours of paperwork. The regulation created an unfair advantage for foreign-owned extraction companies.

BUILDING ON PRESIDENTIAL ACTION: President Trump has been steadfast in his commitment to reducing the regulatory burden on everyday Americans, their pocketbooks, and their businesses.

President Trump has required that for every new Federal regulation, two existing regulations be eliminated.
President Trump will initiate fundamental changes to the United States healthcare system to reduce the financial burden on Americans by getting the government out of the way.
President Trump has placed a moratorium on all new regulations by executive departments and agencies that are not compelled by Congress or public safety.
President Trump directed his Secretary of Commerce to streamline Federal permitting processes for domestic manufacturing and to reduce regulatory burdens on domestic manufacturers.
President Trump signed an Executive Order expediting the environmental review and approval processes for domestic infrastructure projects.
President Trump directed the Secretary of the Treasury to conduct a full review of Dodd-Frank to ensure associated, burdensome regulations receive proper scrutiny.
President Trump ordered re-examination of the Department of Labor’s fiduciary rule, to make certain that it does not harm Americans as they save for retirement.

Posted on February 4, 2017 February 4, 2017

President Trump’s Signs two executive actions represent the beginning of the end of the Dodd-Frank

President Trump’s Action to Delay Harmful Fiduciary Rule

February 04,2017

the staff of the Ridgewood blog

WASHINGTON DC, Financial Services Committee Chairman Jeb Hensarling (R-TX) and Oversight and Investigations Subcommittee Chairman Ann Wagner (R-MO), who were with President Trump today at the White House, made the following comments regarding the President’s executive action on the Obama Administration’s harmful fiduciary rule:

Chairman Hensarling: “I was proud to stand next to President Trump in the Oval Office today as he signed two important executive actions that represent the beginning of the end of the Dodd-Frank mistake and the start of a new day that will bring more freedom and economic opportunity to all Americans.

“No unaccountable Washington bureaucrats should get in the way of hardworking Americans and their ability to make financial decisions that work best for their families. Republicans want to empower Americans to make their own financial decisions, but the Obama administration’s so-called fiduciary rule instead empowered unelected, unaccountable bureaucrats. That means costs will go up and choices will go down – just like with Obamacare. Republicans believe if you like your retirement planner, you should be able to keep your retirement planner. If you like your financial adviser, you should be able to keep your financial adviser.

Chairman Wagner: “Today is a great day for low- and middle-income American families. I applaud President Trump’s executive order to delay the Department of Labor Fiduciary Rule, listening to the concerns of everyday Americans and protecting their ability to access retirement investment advice. This delay will allow the Administration to potentially repeal the rule entirely, and within this time, I will continue working toward a permanent solution in Congress through legislation to help preserve investment choice, access and affordability while ensuring all families are receiving investment advice that is truly in their best interest.”

Posted on January 27, 2017 January 27, 2017

‘Dismantling Dodd-Frank’ a Top Priority for Administration, Congress

January 27,2017

the staff of the Ridgewood blog

Ridgewood NJ, After President Trump today said Congress should make financial regulatory reform a priority to “help striving Americans get the credit they need to realize their dreams” and Vice President Pence said “dismantling Dodd-Frank” is a top legislative priority for the Trump Administration, House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement:

“No bureaucrat in Washington should be able to tell hardworking Americans what kind of credit card, bank account, mortgage or retirement advice they can have, but that’s exactly what Dodd-Frank does. As the President and Vice President have said, Dodd-Frank makes it harder for people to get loans to buy a home or start a small business. Consumers are paying more in fees and are losing benefits and access to services they want and need. Instead of ending ‘too big to fail,’ Dodd-Frank institutionalizes bailouts for big banks. Dodd-Frank’s regulations give Wall Street a competitive advantage over community banks and credit unions. In fact, since Dodd-Frank became law the big banks have gotten bigger and the small banks are fewer.

“Fulfilling the Trump Administration’s pledge to dismantle Dodd-Frank this year is essential to leveling the playing field, building a healthy economy and offering every American greater opportunities to achieve financial independence.

“Republicans on the Financial Services Committee are eager to work with the President and his administration to unclog the arteries of our financial system so the lifeblood of capital can flow more freely and create jobs. The Financial CHOICE Act, our bold and forward looking plan, replaces Dodd-Frank with new policies to protect consumers by holding Wall Street and Washington accountable, end bailouts and unleash America’s economic potential.

“Replacing the Dodd-Frank mistake is necessary if we ever hope to enjoy a healthy economy and make America great again.”

Posted on January 13, 2017 January 12, 2017

House Acts to Require Cost Benefit Analysis of all SEC Regulations

January 13,2017

the staff of the Ridgewood blog

WASHINGTON – The House approved bipartisan legislation on Thursday to ensure that the benefits of proposed regulations from the Securities and Exchange Commission (SEC) justify the costs to jobs, economic growth, and capital formation.

The SEC Regulatory Accountability Act, sponsored by Financial Services Committee member Rep. Ann Wagner (R-MO), passed 243-184.

“Ill-advised laws like the Dodd-Frank Act empower unelected, unaccountable bureaucrats to callously hand down crushing regulations without adequately considering what impact those regulations have on jobs,” said Committee Chairman Jeb Hensarling (R-TX). “The true cost of Washington red tape includes the jobs not created, the small businesses not started and the dreams of our children not fulfilled.”

Under the bill, before issuing a regulation the SEC will be required to:

identify the nature and source of the problem its proposed regulation is meant to address;
utilize the SEC’s Chief Economist to assess the costs and benefits of a proposed regulation to ensure the benefits justify the costs;
identify and assess available alternatives; and
ensure that any regulations are consistent and written in plain language.

Further, the legislation requires the SEC to engage in a retrospective review of its regulations every five years and conduct post-adoption impact assessments of major rules.

Posted on January 6, 2017 January 5, 2017

President-Elect Donald J. Trump Nominates Jay Clayton Chairman of the SEC

January 6,2016

the staff of the Ridgewood blog

Ridgewood NJ, President-elect Donald J. Trump today announced he intends to nominate Jay Clayton Chairman of the Securities and Exchange Commission (SEC).

Clayton is currently a partner with Sullivan & Cromwell LLP and brings decades of experience helping companies navigate complex federal regulations to the position. Clayton will play an important role in unleashing the job-creating power of our economy by encouraging investment in American companies while providing strong oversight of Wall Street and related industries. Robust accountability will be a hallmark of his tenure atop the SEC, and the financial security of the American people will be his top priority.

“Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time,” said President-elect Trump. “We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers.”

“I want to thank President-elect Trump for the opportunity to serve as SEC Chairman,” said Jay Clayton. “If confirmed, we are going to work together with key stakeholders in the financial system to make sure we provide investors and our companies with the confidence to invest together in America. We will carefully monitor our financial sector, as we set policy that encourages American companies to do what they do best: create jobs.”

Clayton has had a long and distinguished career advising on public and private mergers and acquisitions transactions, capital markets offerings, regulatory and enforcement proceedings, and other matters. In addition to numerous awards recognizing him as one of the top corporate lawyers in America, Clayton has also authored multiple publications on regulatory law, and has been an adjunct professor at the University of Pennsylvania School of Law. Clayton received a B.S. in engineering from the University of Pennsylvania in 1988 and a B.A. in economics from the University of Cambridge in 1990. He received his J.D. from the University of Pennsylvania School of Law in 1993.

Posted on December 16, 2016 December 16, 2016

Rep.Scott Garrett Meets With the Trump Transition Team

December 16,2016

the staff of the Ridgewood blog

Ridgewood NJ, Rep. Scott Garrett may get his revenge despite the conservative’s recent election loss.It’s being reported that Rep. Scott Garrett has met with the Trump Transition Team and he may get a job at the Federal Housing Finance Agency or the Securities and Exchange Commission (SEC) .

Scott Garrett, a veteran House Republican who lost his re-election bid last month, met with Trump transition officials in New York Thursday morning, as a sign he is under consideration for a top position in the Trump administration.

While New Jersey voters turned their backs to Garrett and instead elected Democrat Josh Gottheimer, a former Microsoft Corp. executive who tied his fortunes to Hillary Clinton trading a veteran policy wonk for a substanceless out of power Clintonista with no political clout.

The new Trump Administration has prioritized many of Scott Garretts main issues including the repeal of Dodd-Frank, repeal of Obamacare and removing the too big to fail provisions from virtually all Federal agencies.

Garrett showed up at Trump Tower in Manhattan at about 10 a.m., according to the press. Garret declined to say whom he was meeting with but told reporters it was neither President-elect Donald Trump nor Mike Pence, with whom Mr. Garrett is said to be close too.

Garrett a longtime critic of federal housing policy is reported interested in a role at the Federal Housing Finance Agency, which oversees the government mortgage giants, Fannie Mae and Freddie Mac, according to people familiar with the matter.

The National Association of Realtors Congressional Fund spent $1.3 million supporting Gottheimer, including $146,000 for online ads, $529,000 for mailings and $590,000 for TV ads .Garrett crossed the Realtors group by pushing a bill in 2013 that would have scaled back the role of Fannie Mae and Freddie Mac, the government-backed companies that buy mortgages from lenders.

Posted on December 11, 2016 December 10, 2016

Banks to Donald Trump: Don’t Kill Dodd-Frank

pic J.P. Morgan’s Mr. Dimon

Bankers admit they love the guaranteed bailouts, lack of competition and regulated margins of Dodd-Frank
December 10, 2016

the staff of the Ridgewood blog

Ridgewood NJ, Big banks have an unexpected message for President-elect Donald Trump: Don’t trash the Dodd-Frank Act.“We’re not asking for wholesale throwing out Dodd-Frank,” J.P. Morgan Chase & Co. chief James Dimon said at a financial-services conference this week where he and other big-bank executives spoke, often addressing potential regulatory changes for the first time since the election.

During his presidential campaign, Republican Donald Trump said he would “get rid of” Dodd-Frank — the sweeping legislation passed in 2010 to address problems underlying the 2008-2009 financial crisis. Dodd-Frank a 2200 page monstrosity , was passed by congress like Obamacare without anyone reading the legislation , that is except for former NJ Congressmen Scott Garrett.

Dodd-Frank turned banks into utilities and did nothing to solve the ills that caused the banking crisis in 2008 ,it basically institutionalized the bad behavior that created the problem, put the bad debt in suspended animation and put taxpayers on the hook with its “too big to fail” provisions. Too big to fail also implies the corollary to big to really succeed.

Former Fed Chair Alan Greenspan called “too big to fail” legislation a “moral hazard” , giving bankers the excuse to engage in activities that would otherwise risk their livelihoods, feeling confident in ever larger government ie taxpayer bailouts.

Some in Washington have called for full repeal of Dodd-Frank, the legislation passed in 2010 that imposed new constraints on banks and created new agencies like the Consumer Financial Protection Bureau. A proposal that would effectively replace Dodd-Frank, by Rep. Jeb Hensarling, the Republican chairman of the House Financial Services Committee, has gained momentum since the election.

The Trump team has talked about dismantling the law, although it has yet to state clearly whether this would involve a repeal of Dodd-Frank. Bank stocks have soared about 20% since the election, partly on the belief President-elect Donald Trump in some way will lighten banks’ regulatory load.

While banks favor a paring back of regulation, they tend to think in practical terms, rather than ideologically. And their core message seems to be: Make regulation simpler and less costly but don’t return banking to the Wild West days that preceded the financial crisis.

In many ways that is understandable. Banks have spent half a dozen years and hundreds of millions of dollars to adapt to the new landscape. This has caused them to exit businesses such as proprietary trading, rejig their corporate structures to make them safer and focus more on clients’ needs. While tearing up Dodd-Frank would seem to unshackle banks, starting with a new regulatory playbook would upend their new business models and divert management.

One of the biggest concerns for banks is that things don’t get worse. “The first thing I would ask for is nothing new, no new rules,” Citigroup Inc. finance chief John Gerspach said at the conference. “If you haven’t figured out yet how all the existing rules work together, don’t put on anything else.”

Banks acknowledge benefits to the new rules, noting they have helped improve the way firms manage risks and view their businesses. U.S. bankers have also said that having been forced to hold more capital, and build it quickly after the financial crisis, made their firms far stronger than troubled European peers.

So what would the big banks like to see changed?

Stress Tests—These annual exercises conducted by the Federal Reserve have become hugely important because they govern the amount of capital banks can return to shareholders, either through buybacks or dividends.

Banks want these to be based more on objective criteria and they want to have more of a view into the testing process and the Fed’s decision-making. And they should take less time and money to comply with, bankers say.

Bill Demchak, CEO of PNC Financial Services Group Inc., said his bank could theoretically get all the benefits of the stress-testing process with “60% of the effort.” He said that to comply with the tests, “you bring the place to a grinding halt once a year.”

The Volcker Rule— Banks say they aren’t eager to get back into the business of speculating on market moves using their own balance sheets. But they want the process around the Volcker Rule to be less burdensome and administered by fewer than five agencies.

Changes in this area could “probably make it easier to make markets” and improve liquidity, likely benefiting investors and other issuers, said Mr. Dimon.

“You have active market-marking in lumber, rebar, chicken, pork, cotton; we need it in financial instruments, it’s not different,” he said. “I do think a little more liquidity could be good.”

Mr. Gerspach said Citigroup would like less paperwork. “We don’t want to do proprietary trading,” he said. “But I also would love to work with regulators to lessen the burden of proving that we’re not engaging in proprietary trading.”

Capital and Liquidity—Banks say there are so many new rules relating to so many areas of their balance sheets that they too often run the risk of working against each other. And it isn’t clear when enough capital really is enough.

Wells Fargo chief Timothy Sloan cited differences between rules about how much capital a bank must hold and the amount of liquid assets a firm has to keep on hand. The intersections of these rules, bankers argue, hampers lending.

Bankers would also like more clarity around how much capital is enough for banks. Regulators have applied various capital surcharges to the biggest banks and these can change as regulations evolve.

“It’s getting certainty around the ability to have access to your capital return once you’ve met all the hurdles and whether those hurdles move up or down because of various people’s point of view,” said Bank of America Corp. chief Brian Moynihan.

J.P. Morgan’s Mr. Dimon said that regulators’ authority should be “cut back a little bit. It should be more prescriptive in exactly what they’re trying to accomplish.”

For all that, bankers are taking a wait-and-see stance before making any big changes to their businesses. “I think the difference going into 2017 is that we do have hope,” Citigroup’s Mr. Gerspach said. “But…we can’t build a plan on hope.”

The fact that the culprits of the Financial Crisis in 2008 are now opposing the repeal of Dodd-Frank is further evidence that things need to change dramatically . The entire financial sector of the economy has been moribund under Dodd-Franks government imposed socialism . A vital and growing financial sector is paramount to an active and growing economy .

https://onesmallvoice.blogspot.com/2016/12/banks-to-donald-trump-dont-kill-dodd.html

Posted on November 8, 2016 June 27, 2021

Rep. Scott Garrett :The economy is broken and people need jobs

Dear Friend,

We still haven’t seen the economic recovery that we were promised after the financial crisis of 2008 left so many people with no job, no savings, and no hope for the future.

Immediately following the crisis, big government sprung into action and made things worse. It spent more money, created more onerous rules and regulation, and did nothing to fix the broken tax code.

Bailouts and stimulus spending added trillions of dollars to the national debt, Dodd-Frank and ObamaCare created more costly regulations on the American people, and Washington special interests continue to seek out carve-outs and favors in the tax code. The cumulative result of these actions is the slowest and weakest economic recovery we’ve seen in decades.

People are taking jobs that pay far less than they used to make, Millennials live with their parents because they can’t start their careers, and families are worried about their financial future. We cannot continue down this path.

A strong economy can only be built on a strong foundation that grows from the bottom-up. Main Street—not Washington or Wall Street—needs to be empowered to drive this economy. Here’s how I’m working to help:

Cut wasteful spending – With our national debt quickly approaching $20 trillion, it’s clear that Washington has a spending problem. My amendment to the budget that called on the House to find an additional $30 billion in spending cuts was the only one that passed this year.

Limit the rules and regulations coming from Washington – This year alone, over 80,000 pages of new regulations were added to the federal registry, costing each family thousands of dollars in compliance costs. I support the REINS Act that would force a vote in Congress on any regulation that would cost more than $100 million. Additionally, the Financial Services Committee where I serve has introduced the Financial CHOICE Act to make it easier for people to reach their financial goals.

Fix the tax code and special interest carve-outs – The tax code is broken and needs to be fixed. Special interests continue to seek carve outs through their connections in Washington while average Americans suffer the consequences. I support a plan that would simplify the tax code, close loopholes, and keep more money in the pockets of New Jersey families.

Economic recovery doesn’t start in Washington—it starts right here in New Jersey. Given the choice, I’ll choose the hardworking people of this state over any of the bureaucrats in Washington, and I’ll continue to fight to put the people here back in control of their financial future.

Sincerely,

Scott Garrett

Posted on September 23, 2016 September 22, 2016

Garrett Blasts Treasury Secretary Jack Lew Over the Different set of rules for Government Officials for lavish Wall Street Pay Packages

September 23,2016

the staff of the Ridgewood blog

Ridgewood NJ, Rep. Scott Garrett, (NJ-05) Chairman of the subcommittee on Capital Markets and Government-Sponsored Enterprises, delivered the following opening remarks at Financial Services Committee hearing entitled, “The Annual Report of the Financial Stability Oversight Council” featuring Treasury Secretary Jack Lew:

Congressman Scott Garrett’s opening remarks as prepared for delivery:

Mr. Secretary, it’s great to see you again. I understand you were a tough man to nail down to testify today – I guess I would be too if my job was defending FSOC

So we’re starting to get to that point in this Administration’s tenure where people inevitably start to talk about the “legacy” it will leave behind

Unfortunately, when it comes to FSOC, the Obama Administration’s legacy will be remembered as one of secrecy, obfuscation, and a continued refusal to answer questions or provide transparency to either Congress or the American public

Thankfully, it’s not just us in the legislative branch that have taken notice

The recent court decision invalidating the designation of MetLife is a reminder to all of us we live in a system governed by the rule of law and not the rule of bureaucrats.

I hope the Treasury Secretary understands this as well, and I look forward to his answers before our Committee today.

Rep. Scott Garrett had a lively interaction with Treasury Secretary Jack Lew at yesterday’s Financial Services Committee oversight hearing. Garrett addressed Lew’s scandal ridden record at Citibank directly causing the layoff of over 50,000 employees requiring a taxpayer bailout.

When the dust settled, we learned that as usual there are a different set of rules and standards for high-ranking government officials–like Secretary Lew–when it comes to lavish Wall Street pay packages.

Posted on September 22, 2016 September 21, 2016

UN fears third leg of the global financial crisis, with epic debt defaults

AMBROSE EVANS-PRITCHARD

21 SEPTEMBER 2016 • 8:54PM

The third leg of the world’s intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history.

It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal free-market orthodoxies promoted for almost forty years by the Bretton Woods institutions, the OECD, and the Davos fraternity.

“Alarm bells have been ringing over the explosion of corporate debt levels in emerging economies, which now exceed $25 trillion. Damaging deflationary spirals cannot be ruled out,” said the annual report of the UN Conference on Trade and Development (UNCTAD).

We know already that the poisonous side-effect of zero rates and quantitative easing in the US, Europe, and Japan was to flood developing nations with cheap credit, upsetting their internal chemistry and drawing them into a snare. What is less understood is just how destructive this has been.

Much of the money was wasted, skewed towards “highly cyclical and rent-based sectors of limited strategic importance for catching up,” it said.

https://www.telegraph.co.uk/business/2016/09/21/un-fears-third-leg-of-the-global-financial-crisis-with-epic-debt/

Posted on September 21, 2016 September 20, 2016

Opponents of CHOICE Act Aren’t Interested in Protecting Consumers

“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” Rep. Scott Garrett CD5

Norbert Michel / @norbertjmichel / September 20, 2016
On Tuesday, Sept. 13, the House Financial Services Committee passed the Financial CHOICE Act. Among other needed financial reforms, the bill would make taxpayer-funded bailouts of big banks less likely and ease regulations that hurt community banks.

It’s hardly a surprise that the vote (30–26) was largely along party lines, but some of the anti-CHOICE Act rhetoric was disturbing. Just as with the 2010 Dodd-Frank Act, it appears that fear-mongering and special interest lobbying will prevent real financial reforms from even being debated.

Only one of the bill’s 11 sections deals with reform of the Consumer Financial Protection Bureau (CFPB), but opponents are doing their best to tie this entire debate to the CFPB and Wells Fargo. In the process, they’re presenting Americans with a false choice: leave the CFPB alone and remain safe, or reform the CFPB and drown in fraud.

Ranking member Maxine Waters, D-Calif., proclaimed:

We need to look no further than just last week to see why we need a strong Consumer Financial Protection Bureau, which used its authorities under Dodd-Frank to uncover a massive scheme under which millions of consumer accounts at Wells Fargo were fraudulently opened, with the bulk of this fraud perpetrated in my hometown of Los Angeles.

One serious problem with this logic is that the fraud occurred just prior to 2014, almost two years after the CFPB was up and running. And the CFPB didn’t uncover it.

If the CFPB is so vital for fraud protection, what happened?

But what good is logic when the objective is to scare everyone into believing Dodd-Frank and the CFPB make us safer? Fear-mongering is a tried and true Washington tactic, especially when it comes to financial markets.

And it’s not just politicians who use fear-mongering. Special interest groups use the same ploy, and the retail trade associations’ opposition to the CHOICE Act’s repealing of the so-called Durbin Amendment is the perfect example.

The Durbin Amendment, named after Illinois Senator Dick Durbin, imposed a price cap on the debit card interchange (“swipe”) fees that banks charge for using their cards. Supposedly, retailers everywhere were going to pass these savings on to their consumers.

As was easily predicted, consumers haven’t saved at all. Even Barney Frank admits that consumers didn’t see any benefit from the price cap.

Instead, retailers have benefited from the lower fees without lowering their customers’ prices. Worse, consumers have lost out on low-cost banking services because banks raised other fees to compensate for their lost revenue.

Need more evidence?

It’s not the consumers clamoring for the House to leave price controls in place. It is business and retail trade associations, such as the National Grocers Association, the Society of Independent Gasoline Marketers of America, and the National Restaurant Association.

There’s no doubt that these groups’ members have a difficult time running a profitable business, but so does everyone. Instead of pushing back on the CHOICE Act over one tiny section—one that would benefit millions of consumers—these groups should push for large-scale relief of the regulations that make it so difficult for their members to earn money.

Supporting the types of reforms in the CHOICE Act would be a great place to start.

https://dailysignal.com/2016/09/20/opponents-of-choice-act-arent-interested-in-protecting-consumers/?utm_source=TDS_Email&utm_medium=email&utm_campaign=CapitolBell&mkt_tok=eyJpIjoiTW1KbU9EZ3lOVEV4TldGbCIsInQiOiJqeU1sbkJzK3BJK2dXZlV6d0t3RVljaVNnSStBc3B6VEdqYzl4cWZUa1h0bDBlUnhLN25QeVFqUkt4K242dVREZWhlR25KY1E1Sjc1SVhNUngzT2NqMXJYeHRjSDFvbUxIVFBYQ3J0a1ZmND0ifQ%3D%3D

Posted on September 14, 2016 September 14, 2016

House Committee Approves Garrett Promoted Financial CHOICE Act to end Corporate Bailouts

September 14,2016

the staff of the Ridgewood bog

Washington DC, Legislation to end bailouts for big banks, toughen penalties for wrongdoing on Wall Street, promote economic growth, and provide desperately needed regulatory relief for small community banks and credit unions passed the House Financial Services Committee 30-26 today.

The legislation – the Financial CHOICE Act – ends the Dodd-Frank Act’s taxpayer-funded bailouts of large financial institutions; relieves banks that elect to be strongly capitalized from growth-strangling regulation that slows the economy and harms consumers; imposes tougher penalties on those who commit financial fraud; and demands greater accountability from Washington regulators.

“Democrats just voted against a bill that increases penalties against those who commit financial fraud. They just voted against a bill that ends taxpayer-funded bailouts, and they just voted against legislation that provides relief from Washington’s crushing regulatory burden for small banks, credit unions and consumers,” said Financial Services Committee Chairman Jeb Hensarling (R-TX), the sponsor of the bill.

“The bill holds Wall Street accountable with the toughest, strongest, strictest penalties ever – far greater than those in Dodd-Frank. And as recent headlines attest, obviously stronger penalties are needed. It requires banks to be well capitalized to prevent another financial crisis and puts in place the toughest penalties in history to protect consumers from fraud and deception.

“The Financial CHOICE Act will help grow the economy for all Americans, not just those at the top. It promotes strong and transparent markets to revitalize job creation in our poorest communities and ensures every American has the opportunity to achieve financial independence, no matter where they start out in life.”

The Financial CHOICE Act, which stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs, received strong support from community banks and credit unions, small business groups and conservative organizations. Large financial institutions did not offer their support for the bill.

Democrats on the Committee – despite having spent months criticizing the Financial CHOICE Act – refused to offer a single amendment to the bill.

For more information on the Financial CHOICE Act, visit www.financialservices.house.gov/choice/.

Organizations offering praise for the Financial CHOICE Act include the following:

“The [Financial CHOICE Act] would provide meaningful regulatory relief to help community banks foster economic and job growth in their local communities.” — Independent Community Bankers of America

“This bill provides significant regulatory relief essential to restoring economic growth. Republican members of Congress have repeatedly promised to get rid of Dodd-Frank and stop taxpayer funded bailouts. Now they have the opportunity to fulfill that promise by bringing the Financial Choice Act to a vote in the House and Senate, and sending the bill to the President’s desk.” — Heritage Action

“Chairman Hensarling’s CHOICE Act would be a win for Main Street consumers, workers and small businesses. Since Dodd-Frank was passed in 2010, access to free-checking has decreased while lobbyists’ importance has increased. The CHOICE Act helps reverse this trend.” — Main Street Growth Project

“Americans for Prosperity applauds your leadership in reining in the overbearing financial regulations that threaten growth and threaten consumer financial stability. Repealing and replacing the failed policies established in the Dodd-Frank Act will mean that Americans will have greater access to capital, which will lead to greater job growth, personal wealth, and overall economic prosperity. We are proud to support the CHOICE Act, and we urge your colleagues to support it.” — Americans for Prosperity

“….[the Financial CHOICE Act] is precisely the right combination to get the American economy moving again. The CHOICE Act offers sensible regulatory relief for qualifying institutions, protects the American taxpayer and consumer from another Wall Street meltdown, and holds federal financial regulatory agencies accountable.” — Independent Bankers Association of Texas

“….several components of this legislation target reforms specifically to facilitate investment in small business. The inclusion of these provisions and others will provide regulatory relief and modernization that will allow the private sector to fuel economic growth in our 21st century economy.” — Small Business Investor Alliance

“This is an important bill that will truly reform rules governing the financial system, encourage innovation across the system, vastly improve access to capital for entrepreneurs and small businesses, and transform a regulatory structure that lacks accountability, is too secretive, and ignores its responsibilities concerning small businesses.” — Small Business & Entrepreneurship Council

“We greatly appreciate the Chairman’s efforts in Title III of the bill to reform the Consumer Financial Protection Bureau (CFPB or Bureau). This title will help to ensure the Bureau serves as a non-partisan regulator that operates within the framework of the law by giving Congress more oversight authority, taking into account the opinions of all stakeholders, and properly weighing the impact its regulations have on the availability of credit.” — Consumer Bankers Association

“NAR is pleased that the FCA [Financial CHOICE Act] includes provisions that will enhance transparency, accountability and fairness in our financial system. As a result, the FCA will help expand financial product choice and promote economic opportunity. These provisions are an important step towards making property ownership a reality for hardworking Americans and U.S. businesses.” – National Association of Realtors

“If we want the economy to improve — if we want to give all Americans the chance to prosper again — we need to put an end to Washington’s destructive regulatory agenda once and for all. Thankfully, an increasing number of elected officials in Washington are fighting against the harmful effects and unintended consequences of these onerous regulations. Leading the fight in Congress has been House Financial Services Committee Chairman Jeb Hensarling (R-TX), who recently outlined a comprehensive plan to turbocharge the American economy. His new legislation, The Financial CHOICE Act, aims to curb regulations to create opportunity and choice for investors, consumers, and entrepreneurs nationwide.” — Conservative Coalition Letter of Support

“If signed into law, the bill would end the era of too big to fail, and would move banking and financial decisions away from Beltway and back to Main Street. This bill is balanced, meets key conservative criteria, and should continue to move through the House to final passage.” — FreedomWorks

“….[the Financial CHOICE Act] would begin the process of implementing sensible, necessary reforms to the U.S. financial system. That system has been saddled with an ineffective regulatory structure and an array of conflicting legislative and regulatory requirements that, individually or collectively, constrain growth. The Chamber believes the Financial Choice Act is a positive first step for unlocking the capital markets to better facilitate the financing of America’s economic growth and job creation.” — U.S. Chamber of Commerce

“….the CHOICE Act offers a strong alternative to Dodd-Frank and the regulatory morass it created. Rather than creating a flurry of complex rules in response to the financial crisis, Congress should have mandated higher capital requirements for financial institutions. That is why NTU is enthusiastic about the CHOICE Act’s “off ramp” from the bulk of the current Dodd Frank regulatory regime.” — National Taxpayers Union

“….the CHOICE Act and the substantial regulatory relief it provides…will generate meaningful economic and job growth in our communities.” — Mid-Size Bank Coalition of America

“….[the Financial CHOICE Act] address[es] the challenging credit conditions that home builders and home buyers continue to experience as a result of an overly zealous regulatory response to the financial crisis. NAHB appreciates your efforts to initiate regulatory reform to support a more robust recovery.” — National Association of Home Builders

“….it is vital that we take heed of any policy that claims to “fix” the voluntary actions of consumers. Price controls go against everything we stand for as a country and do nothing but redistribute wealth, damaging the lives of hardworking Americans. The first step forward is reform. The Financial CHOICE Act is that first step.” — Red State

“….the Financial Choice Act if passed will restore competition in the marketplace by removing arbitrary government price caps. Additionally, it will allow banks the ability to recoup the money they spend on fraud protection from the retailers that reap the benefit of the use of debit cards. Consumers will once again have affordable access to basic banking services, and small businesses will have the freedom to negotiate processing fees that make sense based on the type of goods they sell. In short, all true conservatives in Congress should rally behind Neugebauer and Hensarling’s bill, because it will cut back on big government red tape and allow the free market to thrive again.” — Liberty Unyielding

Posted on September 6, 2016 September 6, 2016

2016 Bergen County Campaign Season Kicks off in Pre Labor Day Rally for Rep.Scott Garrett

September 6th 2016
the staff of the Ridgewood blog

Wyckoff NJ , the campaign season kicked off a little early with Congressman Scott Garrett holding a rally to an over flow crowd at the Wyckoff public library .Garrett hit on his usual themes focusing deficit reduction, working people keeping more of their own money ,Bergen County rail safety, creating more economic opportunities and focusing his criticism on Dodd Frank and among many things it’s institutionalization of “Too big to Fail”.

The well attended event featured GOP Chair Paul DiGaetano whipping up the crowd in a further indication of a major shift of Bergen County Republican Organization politics. It is no secret of past strains between the BCRO and the Congressman . DiGaetano’s appearance was a welcome sight to many Garrett supporters who have long looked at the BCRO as the enemy.

Garrett spoke about the Choice Act ,” 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.”

He continued ,”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.”

During the Q&A Garrett took a swipe at the Bergen Record’s coverage of him ,reminding a Record reporter that (unlike the Ridgewood blog) no Record reporter has ever come to any of his DC press conferences.

Rep. Garrett summarized , “Spending more money than we have is dangerously short-sighted and continues to stifle the economic future of our country. I will continue fighting to rein-in Washington’s out-of-control spending so our children and grandchildren can have an opportunity to achieve their own American Dream.”