In remarks at the Cato Institute forum on the Dodd-Frank Act, Rep. Jeb Hensarling (R-TX), Chair of the House Financial Services Committee, said that the Committee, in its last major legislative initiative for the 113th Congress, will soon take up a too-big-to-fail legislative package that posits that Dodd-Frank did not end TBTF but actually codified it. One part of the legislative effort would be to repeal the ability of the Financial Stability Oversight Council (FSOC) to designate financial firms as systemically important financial institutions (SIFIs). The Chair said that FSOC can damage the economy with SIFI designations. In addition, designating asset managers as SIFIs could damage investors. The legislative package will also take up the reform of Title II of Dodd-Frank, which provides for an orderly liquidation authority for failed financial firms. The Chair also noted that the Committee will soon mark up legislation on Fed oversight that would bring more transparency and accountability to the Federal Reserve Board.
More broadly, Chairman Hensarling said that the Committee will continue to report out pieces of legislation on regulatory reform and correcting the unintended consequences of Dodd-Frank. He noted that the Committee has already reported out around 20 pieces of legislation to the House floor, many of which have been passed, some with overwhelming bi-partisan majorities.