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FSC Majority | Week in Review
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November 14, 2014
Full Committee Examines Terrorist Financing and the Islamic State
The Financial Services Committee examined ongoing U.S. efforts to stop the Islamic State (ISIL) and other terror groups from obtaining and deploying financial resources at a hearing on Thursday. “Unlike al Qaeda and other terror groups with which we are familiar and rely mainly on private donations and state sponsorship to fund their activities, ISIL is almost entirely internally financed and apparently is sitting on assets of almost $2 billion," said Chairman Jeb Hensaring (R-TX). "Fighting the financial war against terror will demand constant innovation and improvement. The tools we have used in the past may not be suitable for the future. I look forward to hearing from all the witnesses on what may be necessary to upgrade, innovate and improve our capabilities to starve the terrorists of the money they so desperately need to carry out their attacks," he added. "One of the most effective ways the U.S. has disrupted terrorists in the past has been to cut off their financing, limiting their ability to plot and plan attacks. Thwarting the Islamic State's multiple revenue streams and their ability to spend money they already have may require new tactics. So today I'm looking forward to hearing exactly how we are identifying and blocking financial intermediaries that could keep Islamic State in a strong position," said Rep. Marlin Stutzman (R-IN). At the hearing, Rep. Dennis Ross (R-FL) said ISIL is able to generate funding through a variety of means “from selling oil on the black market, to taxing and extorting local businesses, to kidnapping for ransom...I look forward to working with my colleagues on this Committee to ensure the federal government uses every tool at its disposal to prevent ISIL from acquiring the funds to continue their reign of terror.” MEMBER SPOTLIGHT Rep. Sean Duffy | ISIS Funding Network U.S. Representative Sean Duffy (WI-07) talks to Bloomberg's Trish Regan about the ISIS funding network. Weekend Must Reads Washington Times | Wean business insurers off Terrorism Risk Insurance Act There remains a need for a federal backstop against those catastrophic acts of terrorism that cannot be reasonably modeled or mitigated and whose size truly impacts our economy. However, today there is more capacity within insurance and reinsurance industries to cover far greater portions of this risk. There will be even more tomorrow, provided we put the act back on its transitional reform path. Wall Street Journal | The Gensler Clean-Up Under bipartisan pressure from Congress, it’s good to see that Mr. Massad is willing to acknowledge that the celebrated reforms now need to be reformed. But the errors were avoidable. These pages were not alone in warning for years that derivatives rules pursued by Mr. Massad’s predecessor, Gary Gensler, would punish Main Street along with Wall Street. Wall Street Journal | Does the Fed Read the Election Returns? All along, let’s face it, this set of priorities has been partly enabled by the Fed. At a speech in Paris on Friday, as fellow central bankers (even the French!) were talking about the need for deregulation and pro-market reforms, Ms. Yellen—the latest great enabler—continued to sing the praises of quantitative easing to solve all problems.  On the Horizon
November 18, 2014 2:00 p.m.  In the News
Wall Street Journal | Fannie Mae’s Profit Trap Comes Into View Washington Times | New jobs numbers, same poor economy Investor's Business Daily | Despite Gains In Jobs, Americans Aren't Convinced Wall Street Journal | How to Distort Income Inequality Politico Pro | Regional banks looking to Congress for relief The Hill | Treasury urges patience in effort to dry up ISIS dollars Reuters | Exclusive: Export-Import Bank admits errors in small biz data Bloomberg | Fannie-Freddie Regulator’s 3% Down Loans Draw Jeers |
