Leaders of the House Financial Services Committee debated the regulatory environment for community banks, and whether or not regulatory relief is needed, in a series of public exchanges on Tuesday.
The exchange unfolded after U.S. Rep. Maxine Waters (D-CA), the ranking member of the committee, commented on the notion of over regulation during a press conference that addressed Republican plans to rollback protections against forced arbitration in the Dodd-Frank Consumer Protection and Wall Street Reform Act.
“Let me just say that one of the arguments that the Republicans have been effective in advancing is over regulation,” Waters said. “And oftentimes I’m confronted with questions about when are you guys going to do something about the overregulation of the community banks? When are you guys going to deal with the fact that you should be concerned about the fact that the economy does not work as well because of too many regulations? And it seems that too many folks have bought into that. And I’m oftentimes asked this over and over again by the media.”
U.S. Rep. Jeb Hensarling (R-TX), the chairman of the committee, responded that claims about regulation are “no myth” and reflect “the reality that hardworking Americans live with every day.”
“Excessive regulation is taking away their opportunities to make a better life for themselves and achieve financial independence,” Hensarling said, noting that Waters made the comments standing next to House Minority Leader Nancy Pelosi (D-CA) and U.S. Sen. Elizabeth Warren (D-MA). “The question must be asked: Do they and other Democrats also believe overregulation of community banks is a myth?”
Despite Waters’ opposition, Hensarling added, the House Financial Services Committee would remain committed to achieving regulatory relief for community banks and credit unions.
“Congress must pass regulatory relief before it is too late,” he said.