Rep. Jeb Hensarling (R-Texas) harshly criticizes the proposal to create a Consumer Financial Protection Agency, calling it “one of the greatest assaults on economic liberty in my lifetime.” He says that the agency would reduce choices for Americans and will essentially be “Orwellian”. (1:12)
Rep. Jeb Hensarling (R-Texas) says the Obama administration’s new financial regulatory reform plan fails to meet the needs of the financial system. Hensarling uses the example of Fannie Mae and Freddie Mac to illustrate how Democrats are not trying to stop the “bail-out mania”. (0:37)
By Celia Canon-Talk Radio News Service
At a press conference on Thursday, Republicans presented their own financial regulatory reform plan to counter proposals made by the Democrats on this issue.
Rep. Jeb Hensarling (R-Texas) said that “The Republican plan will transition Fannie (Mae) and Freddie (Mac) to market competition over a reasonable period of time to help end what the taxpayers are tired of.. and that is bail-out mania.”
Congressman Spencer Bachus (R- Ala) emphasized the weakness of the Democrats’ plan.
“Unfortunately, the administration’s plan continues the cycle of bailouts for “too big to fail” financial institutions, furthers the government’s role in picking winners and losers, complicates rather than streamlines the current regulatory structure, and keeps taxpayers on the hook for losses caused by imprudent risk-taking on Wall Street,” said Bachus.
Bachus explained that instead, “The Republican plan would direct all failed non-banks to enhanced bankruptcy proceedings. Bankruptcy is a fair and transparent process where the rules are clear and well-established, and which does not require taxpayer funding to bail out the creditors of failed institutions.”
Rep. Shelley Moore Capito (R-Va.) summarized the Republican plan.
“It’s a better protection for our taxpayers, it’s less government involvement, it’s a more orderly transition,” said Capito.
Congresswoman Judy Biggert (R-Ill.) also partook in the presentation of the regulatory plan.
“There’s going to be enforcement and fiscal responsibility for all those that created (crisis),” said Biggert.
Rep. Shelley Moore Capito (R-Va.) summarized the Republican plan.
“It’s a better protection for our taxpayers, it’s less government involvement, it’s a more orderly transition,” said Capito.
Despite the differing plans, both Republicans and Democrats agree on one point: America needs change in the financial system.
A second day of speeches in the House Chamber continued as GOP members told Speaker of the House Nancy Pelosi (D-Calif.) to call for a vote on the American Energy Act, the GOP’s “all of the above” energy strategy. Representatives repeatedly said that given the current energy costs faced by Americans, now is not the time for Congress to take a five-week paid vacation. Rep. Jeb Hensarling (R-Texas) said “I don’t know how they think in the salons of San Francisco,” a reference to Pelosi’s district, adding that the people in the coffee shops of Dallas recognize America’s energy crisis.
Hensarling, speaking to Capitol tourists seated in the House chamber, asked why Pelosi was unable to find time to debate energy in the past months. He told those assembled that Congress found time to debate National Sanitation Week and other frivolous topics, ridiculing decisions made by Democratic leadership. Hensarling said the people of America deserve a vote and gave Pelosi’s Washington office phone number to those in attendance, telling people to call and voice their concern.
In a press statement, Pelosi called Republican actions a “hoax” that does not warrant serious debate. She said Republican proposals give public lands to oil companies and would only reduce prices at the pump by two cents in 10 years. In addition, her statement says that House Republicans have opposed requiring oil companies to drill on the 68 million acres of land they already control. She also notes the GOP has blocked efforts to increase fuel efficiency standards, improve mass transit, and release oil from government reserves.
Rep. Mark Kirk (R-Ill.) said presidential candidates John McCain and Barack Obama both support provisions in the American Energy Act, including offshore drilling. He said one person (Pelosi) should not work against the opinion of a majority of Americans. Kirk referenced challenges previously faced in the House of Representatives including the Louisiana Purchase, the Civil War, and World War II, saying now is the time for Congress to take initiative and solve America’s energy crisis. He said Congress has come to a fork in the road concerning energy policy and, instead of debating which road to take, is refusing to debate a course of action at all.
Rep. Jeb Hensarling (R-Texas) says it would benefit American college students to increase financial literacy, to promote personal responsibility, and it to increase enforcement of anti-fraud and deceptive trade practices law. (0:35)
The credit card practices of college students was discussed by the
House Subcommittee on Financial Institutions and Consumer Credit.
Rep. Carolyn Maloney (D-N.Y.) said that college students are targeted
by credit companies and likely to end up with high debt. She
continued, saying students are often rewarded for releasing their
personal information to credit card companies with items like t-shirts
and pizza.
According to Christine Lindstrom of the U.S. Public Interest Research
Group, decreased federal and state funding for education causes
students to pay for larger shares of their education and often
necessitates credit cards. Lindstrom said her organization is working
to educate college students on financial responsibility and how to be
a good consumer with a credit card. Lindstrom’s organization also
wants to give students the option to prevent universities from
releasing their names to credit card companies.
Rep. Jeb Hensarling (R-Texas) reminded the committee that college
students are adults and though they often use credit cards for
inappropriate purchases, Congress should not deny them their right of
economic freedom. Hensarling said he fears that a solution would have
unintended damaging effects and suggested toughening anti-fraud laws
that prevent minors from being given credit cards. Brett Thurman, the
student-body president of the University of Illinois at Chicago,
stated that students’ issues are directly linked to high educational
costs and that credit card companies should not be able to give cards
to students that have no annual income.
