“House Financial Services Committee” on The Daily Caller

The U.S. Senate bill to overhaul financial regulations is stronger than a version passed in December by the House, and it is likely to stay that way when Congress comes together to merge the two bills, according to House Financial Services Committee Chairman Barney Frank. (more)

Financial reform next steps: There have been reports that Democratic leaders are looking to move the financial reform bill, possibly with a vote to end debate as early as Monday, and a vote on the bill itself Tuesday. Late Thursday, it appeared that votes would continue through the night. Amendments will continue to be filed Friday, but no votes are expected. More Senate votes are scheduled for Monday and, “We’ll be in until at least the early part of next week,” according to Banking Committee Chairman Chris Dodd, Connecticut Democrat. Reconciliation of any Senate bill with the December House bill, may progress very differently than it did for health-care bill, where the House simply approved the bill that the Senate passed. In the case of financial reform, the plan may be for a formal “conference,” perhaps televised, with House and Senate leaders and administration officials discussing, debating and making changes. Both the House and Senate must vote again before it can be sent to President Obama. (more)

It doesn’t come as too much of a surprise that the measure to audit the Federal Reserve is coming under continuous fire from the central bank and its cronies. For the first time since the Federal Reserve was created nearly a century ago, they have hired an actual lobbyist to pound the pavement on Capitol Hill. This is a desperate effort to hang on to the privilege of secrecy and lack of accountability they have enjoyed for so long. Last week showed they are getting their money’s worth in the Senate. (more)

As someone who has run a manufacturing company, I’ve seen the many stages of production that go into a finished product. I understand how taxing each stage of production will add to the end cost of the product, and how that will kill jobs and increase costs for families, and that’s why I’m opposed to implementing a European-style value-added tax (VAT).
In simple terms, a VAT is an invisible type of national sales tax. Instead of being collected at the cash register, it is imposed on the value added at each stage of the production process. The VAT dramatically adds to the cost of everything from food, clothing to housing. For example, under a 15 percent VAT—the minimum standard amount allowed for members of the European Union—a $3.70 gallon of milk would sell for $4.30; a $2,000 MacBook Pro would cost $2,380. A 15 percent VAT would pump nearly $750 billion into the government’s coffers, taking thousands from every American family and raising production costs for manufacturers. (more)

In 1901, 40 percent of a consumer’s income was spent on food consumed at home. By 2001, that number had dropped dramatically to 7.8 percent. As a result of the low cost of food, more of a family’s income can be spent on housing, transportation and health care. In this economic climate, when many families are affected by unemployment, the consistent low cost of food is more important than ever in order to stretch each dollar as far as possible. While it may not be apparent at the supermarket, complex financial products called derivatives play an essential role in avoiding significant price spikes in your groceries. Unfortunately, new regulations being considered in Congress may threaten the ability of businesses to utilize these products to help consumers. (more)

With news that financial reform legislation is headed for the Senate floor, it is time to officially scrap the administration’s proposed Financial Crisis Responsibility Fee—the “bank tax.” Now, before the populists with pitchforks and torches start after me, let me emphasize that, sensibly, the TARP law says that the taxpayers must be given a path to recouping their losses. (more)

Rep. Barney Frank, the openly gay Democrat from Massachusetts who endured his own sex scandal two decades ago, said nothing inappropriate occurred between one of his staffers and former Rep. Eric Massa. (more)

Full document available in PDF Given the role played by the financial sector in the Great Recession of 2008-2009, the case for reform of the financial sector is strong. The Obama Administration has proposed that a key element of reform should be the creation of a new and independent Consumer Financial Protection Agency, whose primary mission would be to look out for the interest of consumers. Advocates of this approach argue that it was the proliferation of deceptive, unfair, and predatory financial products which hurt consumers and ultimately undermined the larger economy. The House of Representatives has passed a sweeping financial reform bill that includes the establishment of a robust agency with rulemaking and enforcement powers. As policy deliberations unfold, the specifics of this proposal deserve scrutiny—especially with an eye toward the policy features which would be most effective in protecting consumers and creating a safer and sustainable marketplace for financial services. (more)

Credit card bills will get more user-friendly on Monday, one of the most obvious ways a new federal law will try to help frustrated customers. (more)

The Financial Crisis Inquiry Commission (FCIC) garnered attention last month when it hauled the heads of four of Wall Street’s largest banks to Capitol Hill to answer questions about their roles in the taxpayer-funded bailouts of their companies. And since that first round of public hearings, the 10-member commission and its staff of 35 has worked quietly from offices on Pennsylvania Avenue, questioning key players behind closed doors as part of their ongoing investigation into the causes of the financial meltdown. (more)

In news accounts about fights over new regulation, the story is almost always the same. The media portray the drama as that of well-intentioned experts wanting more regulation to protect the public good versus the business lobby ferociously opposed to the imposition of these new rules. (more)