House GOP Cool on Compromise
Washington,
Apr 28 -
By James Hohmann
House Republicans are unlikely to jump on board with a financial reform bill even if a controversial $50 billion bank liquidation fund is removed, making it clear that even if a Senate compromise emerges, the vote will still be partisan in the House.
“Essentially, either you believe in ‘too big to fail’ or you don’t,” said Rep. Jeb Hensarling (R-Texas). “It’s like being a little bit pregnant.”
Three members of the conservative Republican Study Committee emphasized to reporters at a half-hour morning session that they think any reform should deal with the practices that led to excessive lending and the federal takeover of Fannie Mae and Freddie Mac.
“If there’s any party that’s standing up for the big banks, it’s Democrats,” said Rep. Scott Garrett (R-N.J.).
Republicans in the lower chamber haven’t had much skin in the game since the House passed its reform bill last year, and they won’t play a key role in the conference committee after the bill passes. Garrett said Wednesday the bill should not come to the Senate floor.
“I think the short answer to that is no because here is the paramount issue that they should be dealing with,” he added. “More money has been spent on Fannie and Freddie than all these other things combined, and it’s silent in the Senate bill…We need to go back and do it in a comprehensive matter in a way that would actually solve this problem.”
The Republicans also rejected the notion that they oppose regulation. Hensarling, the top Republican on the financial institutions and consumer credit subcommittee of the Financial Services Committee, said it’s a “false dichotomy.”
“It’s a difference between smart regulation and dumb regulation,” he said. “We would have different regulations. It’s not a question of more or less.”
Hensarling added that federal agencies like the Securities and Exchange Commission had power that they did not use. He also said he didn’t know enough to say whether Goldman broke any laws.
The chairman of the Republican Study Committee, Rep. Tom Price (R-Ga.), said “clearly the status quo is not acceptable.”
“We believe regulation ought to be flexible and nimble, not oppressive,” he said.
Online: Politico
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