Mr. Speaker, I want to thank my colleague for yielding time to me. Mr. Speaker, I rise today in strong opposition to H.R. 3312. I appreciate my colleague's redesignation, renaming of the bill. I think it is much more appropriate. Mr.…
Mr. Speaker, I want to thank my colleague for yielding time to me.
Mr. Speaker, I rise today in strong opposition to H.R. 3312. I appreciate my colleague's redesignation, renaming of the bill. I think it is much more appropriate.
Mr. Speaker, this is a completely unwarranted piece of legislation. If you look at it, it is just another gift to the wealthy and the well connected on Wall Street.
We keep saying that over here because it is true. It is crazy. In 2008, the economy was brought to its knees. Reckless behavior out there by a lot of these huge institutions. The Nation's largest financial institutions crashed the economy. Everybody knows it.
So what did we do? We took steps, smart steps. We put in place the Wall Street Reform and Consumer Protect Act of 2010. I think most Americans were comforted by that. They felt, okay. There are guardrails in place now so this kind of thing can't happen again.
But the fact of the matter is that, as soon as the ink was dry on that law, lobbyists moved in, the special interests moved in, and they started to unwind the core provisions, and the guardrails are starting to come down.
This is crazy. This is a case of amnesia at best or cynical capitulation to Wall Street at worst.
Proponents of the legislation say this is about helping the mom-and- pop banks on Main Street--Main Street. Were institutions like Countrywide and Washington Mutual and Wachovia and IndyMac--these are the names that haunt a lot of Americans. A lot of American households suffered because of the behavior of those institutions. Were they Main Street banks?
The fact is, under the bill before us, some of the Nation's largest banks whose failure led to the carnage of 2008 would be exempt from heightened oversight. Exactly the kind of institutions that the public wants us to keep an eye on would no longer have that oversight in place. Of those still standing, 30 of the Nation's 38 largest financial institutions would escape sensible oversight imposed by Dodd-Frank.
Even more than that, this legislation is based on the false premise that the reforms of Dodd-Frank were one size fits all. That is the phrase we always hear to justify letting go of the reins: Oh, it is one size fits all. People can't fit into this. We have got to do something.
But, no, the agency was given the maneuvering room, the flexibility, to actually customize things and have been in a position to do that.
There was a premium put on regulatory flexibility, explicitly instructing the Federal Reserve to tailor its prudential regulatory regime based on size and risk profile of financial institutions.
Ironically, the changes to asset thresholds will increase the likelihood of consolidation as large financial institutions and banks can now grow, that is, buy out small players beyond the $50 billion threshold. The banks are going to start growing bigger again. The financial institutions are going to get heavier again. It makes it easier for them to crash through whatever guardrails we can build.
The public doesn't want this, and that means true community banks very well might be absorbed by super-regional banks, which would decrease consumer credit access and worsen pricing.
Mr. Speaker, Americans are tired of watching this Congress forget the lessons of the 2008 financial crash. They are tired of a Congress that routinely favors Wall Street over the interests of Main Street, and they are tired of the same worn-out talking points that are used to justify deregulation of Wall Street.
Mr. Speaker, I urge my colleagues to oppose this bill.